Question

Briefly explain the following:

Group Insurance

Answer 1

1. Group insurance is a type of policy that covers a group of people, typically company employees, members of an organization, or family members, under a single contract.
2. Employers often provide this arrangement as a benefit to their employees and can include various types of insurance, such as health, life, dental, and disability insurance.
3. It provides risk coverage to the employees as long as they remain in the service of the employer.
4. Group Life Insurance is basically a contract between the insurance company and the employer. The policy issued to the employer is called the master contract
5. The premium is generally paid jointly by the employee and the employer.
6. The amount of premium is payable at a flat rate without any regard for the age and salary of the employees.
7. In case of injury or death to an employee, the claim received by the employer is paid to the employee or his nominee.