How is a group insurance scheme a perk?
Only when a group of people harmonizes to achieve a goal can any company or organization perform better. Also, greater performance will benefit the company with the best outcomes and keep the team motivated. No matter whether they are part-time or full-time employees all of them deserve the best from their companies. Moreover, they expect the best perks and benefits from their employers. Thus, purchasing a group insurance scheme can the company motivate them to have a long-term relationship as an employee. Covering a large group of people at a lower premium rate attracts many people to opt for this insurance.
Take up the insurance when all the members of the group agree to take up the insurance policy. Also, one of the group members (usually manager) becomes responsible for holding the insurance. This is when the Master Policy is issued to the manager. The manager gets a certificate for the insurance wherein all the details are mentioned.
As a responsible manager, he/she must disclose all the relevant information to the group members. Such as the premium rates, the benefits one gets, administration charges, terms and conditions and many more. On the other hand, he/she must also disclose all the small piece of information to the insurance company. Such as if any new member /employee admits in the group or if an employee has left the group and so on. If the policy period matures but the group continues then the manager must renew the policy. This means till the group is there the policy must also be there.
In group insurance, the rate of premium will be the same for all the members irrespective of age or income distribution. As a group, the risk will be the same and the premium will also be same as many organizations, companies use broker services to design their plan and negotiate with insurance companies.
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