Health insurance covers you in medical emergencies which require hospitalisation. A group personal accident insurance policy provides protection only in the event of an accident or injury occurring to the employee in his workspace. This insurance is the nature of add-on insurance, whereas health insurance is comprehensive insurance. Though both types of insurance help you during times of medical emergencies, it is essential to understand the subtle differences between the two.
Key differences between group health insurance policies and group personal accident insurance policies.
- Health insurance policies deal with the entire gamut of treatment and hospitalisation expenses, not only those which occur during accidents or injuries, but also the ordinary course of a human being’s life. Group personal accident insurance policies seek to protect the financial beneficiaries of the insured during accidents and mishaps and provide different benefits which are not covered under a normal health insurance policy.
- Group health insurance is more expensive as it covers more eventualities compared to personal accident insurance. All common illnesses that may affect a person are covered under its purview. That is why it is more expensive than a personal accident insurance policy. Group health insurance covers ambulance charges, surgical procedure charges, prescription charges, and any other medical charges that come with hospitalisation. Personal accident insurance policies usually pay out a financial lump sum to meet accident/injury expenses. There are, of course, individual accident insurance covers, which are also comprehensive.
- In the event of the employee’s death due to a work-related accident, the accident policy offers financial compensation to the family and the financial dependents of the deceased. This amount usually is equal to the sum assured mentioned in the policy. Such financial compensation is not offered under group health insurance.
- In the event of the total disablement of the worker also, where he is unable to take up full-time employment again, financial compensation is provided under the terms of group personal accident insurance policy. No such financial compensation is provided under the Group health insurance policy. The premium is a portion of the sum assured of the selected disability insurance cover. Suppose you, as the employer, feel that there are greater chances of workplace accidents going by the historical track record, you should take group personal accident insurance cover as an add-on policy for the protection of your employees.
- Health insurance policies cover pre-and post-hospitalisation expenses for the disease that the employee is suffering. This could include lab tests, X-rays and MRI scans, or even consultations with the operating surgeon. Personal accident insurance only covers hospitalisation charges for the treatment of the injury.
- Differences in the sum assured: The medical expenses cover limit annually can vary between Rs. 3 lakhs to Rs. 1 crore or above for a health insurance cover. Normal personal accident insurance policies sum assured are normally capped at Rs. 50 lakhs.
- In health insurance policies, several add-on covers can be added such as maternity cover, critical illnesses cover, pre-existing illnesses, etc. In the case of a personal accident insurance policy, normally no such additions are permissible. There is only the base plan available.
- In health insurance policies, sometimes, there is a waiting period varying between 9 months and 4 years before the benefits under the policy kick in. In the case of a personal accident insurance cover, there is no such waiting period. As soon as the policy is taken, the benefits become applicable.
Are health insurance and personal accident insurance policies mutually exclusive?
- Health insurance policies are policies that are used by employees in the normal course of business to meet the expenses relating to hospitalisation, surgeries, and childbirth to enable employees to meet the various hospitalisation charges and expenses for any surgical or medical procedures.
- Personal accident insurance policies enable employees and their families to meet the expenses related to the unthinkable, unforeseen accidents at the workplace; death, permanent total or partial disablement, and provide the financial means for the employee and his financial dependents to continue their life, education, etc.
- They are separate from each other and provide separate coverages to protect the employees and their dependents. In an ideal situation, both group insurance policies should be taken to protect the employees and their families.
As an employer of a start-up, small business organisation, or an MSME, it is incumbent on you to keep the employees motivated and protect their interests. Support them during major mishaps in their life as well as during their illnesses. This will reinforce the image of your organisation and your image as caring employers who hold employees’ welfare prime most. Health insurance policies and group personal accident insurance policies are straightforward to set up. Visit Plum insurance today!
Plum Insurance provides extensive risk coverage, digitally processes claims seamlessly, and provides an overall good insurance experience to your organisation and your employees. Visit Plum insurance without any delay to get the best terms for an online insurance policy for your employees.