Group Personal Accident (GPA) and Group Medical Coverage (GMC) are two types of health insurance policies that can be complicated and difficult to understand. They sound similar but are not the same; at PolicyX, we have summarized all of the facts and information needed for our readers to comprehend GPA policy and GMC policy.
The productivity of any business is dependent on several factors. Employee satisfaction is a significant factor that impacts the way businesses start, grow, and thrive in this competitive environment. To keep their employees happy and engaged, organizations offer many benefits in the form of sick leaves, privileged leaves, etc.
One such benefit is the Group Medical Coverage Policy and the Group Personal Accident Policy, which takes care of all major unexpected events that may come in the life of the employees. Both these policies offer substantial medical and financial coverage to the employees to protect their welfare.
Before we delve deeper into what is GPA and GMC policies are, it is essential to understand the key definitions for both.
Group Medical Coverage (GMC) is an insurance policy that protects employees in a company from hospitalization costs caused by medical conditions. Meanwhile, GPA provides coverage for accident-related disability and even death.
|Differential Factors||GMC (Group Medical Cover)||GPA (Group Personal Accident)|
|Coverage Scope||Group Health Plans offer medical cover against hospitalization, maternity expenses, Day-care treatments, medicines, diagnosis and more for a group of employees||GPA on the other hand provides cover against accidents or accident related complications such as accidental disability - total or partial, accidental death, and more for a group of employees|
|Type of Coverage||Indemnity Based health insurance||Fixed-Benefit Health Insurance|
|Coverage for||GMC can be customized as per the requirements like number of employees, industry of organization, occupation, etc.||GPA is a fixed insurance plan and has no scope of any major customizations|
|Best suited for||GMC can be purchased by corporates from any industry as it offers indemnity based health insurance benefits||GPA is an ideal group insurance for industries with higher risk involvement such as mining, construction, etc.|
|Range of Cover||GMC has a vast range of coverage as it covers not just the employee but their dependents as well. GPA can be added as an additional cover under GMC health insurance||GPA however, has a low range of coverage and can cover only the employee|
Because one is an indemnity-based health plan and the other is a fixed-benefit plan, they serve different purposes. Employers and employees should decide on the appropriate policy for their industry while keeping the hazards of their occupation in mind. Both policies offer advantages and disadvantages that must be thoroughly considered before investing in any policy.
Group Medical Policy is a tailor-made health insurance plan offered to a group of people, where the benefits offered are the same to all the members belonging to the group. This policy is taken by employers who customize them according to the needs of the organization. Since the risk is spread to a number of individuals in an organization, the premium for the policy is substantially lesser than individual medical insurance plans.
Regardless of the health risk factors of the employees in the organization, the same amount, and the same benefits are offered to the employees. Many organizations pay the total cost of the premiums, while some organizations charge a certain amount from the employees’ salaries.
The premium for the GMC policy is calculated using the following factors:
1 Hospitalization Expenses
All the expenses that occur while the employee is hospitalized is covered under this policy. The cost of the hospital stay, the medical amenities, and the equipment costs charged by the health institution is fully covered. In some cases, insurance policies also provide a cover for certain diagnostic procedures such as CT Scan, X-Ray, MRI, blood tests, etc. at an additional premium.
2 Pre and Post Hospitalization Expenses
The pre-hospitalization expenses such as doctor’s consultation fees, pathological tests, and post-hospitalization expenses such as tests to confirm the body’s response to the treatment, medicines, doctor’s follow-up, etc. are covered under the policy. However, depending upon the health insurance company, this coverage is limited to 30 days of pre-hospitalization expenses and 60 days of post-hospitalization expenses.
3 Reimbursement of out-patient expenses
In some cases, employees have to undergo ENT, Ophthalmological, and dental treatments, pacemaker placement, dialysis, chemotherapy, which are not usually covered under the normal group medical insurance policy. However, at an additional premium, some companies provide these additional covers too.
4 Maternity care and infant health coverage
Group Mediclaim Cover also provides additional benefits to female employees in terms of covering the in-patient and out-patient expenses that occurred during maternity leave. Depending upon the type of insurance policy, prenatal and post-delivery medical care, and infant care benefits are provided to the employee.
5 Family Floater Cover
Many organizations are extending their employee’s coverage to their family members too under which the spouse, children, and dependent parents/in-laws are covered under the policy. The single sum insured is available to all the entire family unit for a year.
6 Day Care Procedures
Any medical procedures that are conducted in a specialized daycare center under which the employee is discharged the same day, are covered under this policy.
7 Cashless Hospitalisation
Under the Group Medical Coverage policy, the insured employee can avail cashless treatment in any network hospital listed on the prospectus of the insurer.
Following are the permanent exclusions:
Group Personal Accident Policy is a group insurance plan, which provides financial cover against unexpected events such as accidental death, injuries, or disability to the members belonging to the group. Any unexpected accident that occurs while the employee is on duty or not, or in the country or not is covered under this policy. Due to its extent of coverage, it is also called a 24-hour worldwide accident policy.
The death of the individual employee due to unintended, sudden, and unexpected accident is covered under the policy. All the medical expenses incurred in the treatment for the injury are covered under the policy based on the sum assured.
Any accident that causes the incapacitation or dismemberment of any part of the body is covered under this policy.
Permanent, Total, & Partial Disability
If the accident results in a partial, or total disability, that leads to a continuous loss of a body part or a sensory organ, then the GPA will provide the compensation under the policy. In case of temporary total disablement, the cover is provided only if the bodily harm prevents the employee from getting back to work for a period of not more than 104 weeks from the date of the accident.
In addition to the capital sum assured, the following additional benefits are provided under the policy:
On the payment of additional premium, some insurance companies provide the following add-on covers are provided to the employees:
Natural deathPayments made after making the claimFraudulent claims
Death or injury due to:
According to the IRDAI rules, the following documents need to be submitted depending upon the type of claim:
For Death Claim
For Permanent Total disablement/Permanent Partial Disablement
For Temporary Total Disablement