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Group personal accident insurance, Employee benefits insurance Singapore

Why You Should Consider A Group Personal Accident Insurance Plan

As a business owner, you are responsible for the safety and well-being of your employees. However, what your employees do outside of work is their purview and not within your control. Unfortunately, they could get into an accident outside of work hours, impacting your business and leaving you short-staffed.

When this happens, you will want to ensure your business does not suffer due to their absence. That is where group personal accident insurance comes in handy, offering employees 24-hour coverage in the event of accidental bodily injuries. Such is its prevalence; this insurance has since become a standard part of most companies’ employee benefits programmes.

If you have yet to incorporate a group insurance policy for accidents to safeguard your employees, please consider doing so as soon as possible. Let us discuss how this insurance can benefit your business and why it might be worth adding this coverage to your company’s benefits package.

Group Personal Accident Vs. Work Injury Compensation: What Are The Differences?

Unlike work injury compensation, group personal accident insurance is not mandatory in Singapore. As such, many employers may be wondering why they require group personal accident insurance when they already have work injury compensation insurance. The answer is simple – both insurance products are vastly different, with distinct coverage intentions.

Work injury compensation only covers specific claims situations arising from work accidents. Meanwhile, group personal accident insurance provides more of a general accident cover. For example, your employees are covered under group personal accident insurance but not WICA if they are injured while taking public transport to or from work.

Please note that group personal accident insurance does not sufficiently cover an employer’s liability in work accident situations. Therefore, this insurance is not an alternative to work injury compensation insurance. Ideally, both should be vital aspects of your employee benefits insurance portfolio.

What Does Group Personal Accident Insurance Cover?

Image of an Doctor examining an injured patient

The best thing about group personal accident insurance is that it offers worldwide, 24-hour coverage in the event of accidental bodily injuries. So, your employees are covered regardless of where and when they incur an injury due to an accident.

A typical group personal accident policy offers coverage for:

  • Death – a lump sum benefit is payable upon death to the beneficiary if the insured passes away due to an accident.
  • Permanent and total disability – the insured received a lump sum upon suffering permanent incapacitation due to an accident.

You can also consider the following optional extensions for additional coverage:

  • Ambulance costs
  • Fracture benefits
  • Funeral expenses
  • Hospital recuperation
  • Medical expenses
  • Temporary total/partial disability

Who Needs Group Personal Accident Insurance?

A group of smiling working adults in an office

The good news is that group personal accident insurance is customisable depending on your company’s needs, making it ideal for businesses in high-risk industries, such as construction or pharmaceutical manufacturing, or those with large groups of employees. Instead of viewing group personal accident plans as an expense, consider them a helpful add-on to your employee benefits insurance policy.

What Are The Benefits Of Group Personal Accident Insurance

Group personal accident insurance can be a crucial safety net for your business and employees, safeguarding them from unforeseen circumstances. Here are the benefits for both individuals and organisations.

Benefit #1: Financial Security In The Event Of An Accident

In the unfortunate event of death or disability due to an accident, the policy will make a payout to the beneficiary of the insured, ensuring those affected can cope with the financial challenges arising from this life-altering incident. 

Benefit #2: Covers Medical Expenses And Hospitalisation

In severe accidents, the insured may need to be hospitalised for treatment. During this period, the medical expenses can quickly add up, causing undue stress on the patient and their family. Group personal accident insurance can help alleviate this burden, allowing the individual to focus on their health and well-being and enjoy a smoother recovery process. 

Benefit #3: Enhances The Company’s Reputation

Having a comprehensive group personal accident insurance in place demonstrates a company’s commitment to safeguarding its employees. When employees know they are valued, they form a positive opinion of the organisation, enhancing its reputation.

This comprehensive insurance coverage can also be utilised as an attractive benefit to lure top talent. In today’s competitive job market, a company’s benefits package can often impact a prospective employee’s decision. Incorporating a group personal accident policy can be a compelling factor in attracting skilled professionals to join the organisation.

A comprehensive group personal accident insurance plan can be an essential financial tool to safeguard your business from unforeseen accidents. However, please bear in mind that different insurers provide varying levels of benefits and coverage. Therefore, we recommend doing your research and finding out what you need before engaging an insurer.

If you need help deciding which insurance package is suitable for you, please consult Acclaim Insurance Brokers. We have been in the insurance brokerage business for 40 years. With our extensive experience, we can help anticipate risk at every level, delivering bespoke, cost-competitive insurance solutions that best fit your business needs. Contact us today to learn how we can help you.

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