This is a policy designed for the offered to a group by an employer, association or other organization. Coverage provides a benefit to the beneficiaries if a covered individual dies during the covered period. Under this plan an employer can provide life Insurance cover to all the employee along with their family under a single plan.
Who can take this policy : Any registered company with a minimum of 10 number of employees can be covered under Group term life insurance policy.
Benefits to the Employer:
Benefits to the Employees:
A NBFC has taken a term plan for the lonee, the number of lonees covered initially was approx 10k with addition of 1500 members per month.Due to large group size there was delay in addition and deletion.The request for addition of one of the member was send after his death.
The claim was rejected by the Insurance company as the effective date of endorsement was after the death of the Insured.
The members should be added in the policy from the date of disbursement of loan.
Whenever there is frequent addition/deletion in the policy it is advisable to maintain a CD account i.e. advance deposit with the insurer.
In a GTL policy of a textile manufacturing unit, the policy had a waiting period of 45 days for non accidental cases. A employee died due to heart attack within 35 days from the Inception.
Since the policy had a waiting period of 45 days, the claim was rejected.
Any such conditions in the policy which restricts the coverage should be avoided.