What is group insurance policy?

1. A group insurance policy offers advantages of standardised coverage at very competitive premium rates as risk is spread over a larger number of people.

2. Groups can be employer-employee groups or non employer-employee groups such as holders of the same credit card, account holders of a bank or members of a social or cultural association.

3. Only one master policy is issued to the manager of the group and is in the name of the group. It could be for life insurance, medical insurance or general insurance.

4. Premium can be charged to the members or paid by the group.

5. The cover can cease if one leaves the group.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)