Definition
Group Personal Accident
Group personal accident cover provides accidental death and disability benefits to a group of people, typically employees, under one policy.
A group PA policy pays fixed benefits for accidental death and permanent or temporary disablement to covered members, on a benefit basis, with the employer usually arranging and funding the cover. Sums insured are often linked to salary, and underwriting is minimal at group level.
Like group term life, it offers cost-effective protection because of pooling, but lapses on leaving the organisation. It complements group mediclaim by covering the income-loss and lump-sum needs that hospitalisation cover alone does not address.
Related terms
- Corporate CoverCorporate cover refers to group insurance benefits an employer arranges for staff, spanning group health, group term life and group personal accident.
- Personal Accident CoverPersonal accident (PA) cover pays fixed benefits for death or disablement caused by an accident, on a benefit (non-indemnity) basis.
- Group Term LifeGroup term life is a single life insurance policy providing term cover to a group of people, commonly employees, with the employer as master policyholder.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.