presentation on conceptual overview of group insurance scheme

1.  Also referred to the instrument of ‘mass insurance’.
 Group Insurance is a plan of insurance, which provides cover to a large number of individuals
under a single policy called the Master Policy.
 The individuals covered under the Master Policy are not parties to the contract. The contract will
be between the Insurer and a body that represents the group of individuals covered.
 Master policy is issued in the name of employer
 Group insurance may offer life insurance, health insurance, group personal accidental insurance
and/or some other types of personal insurance
 Flexibility in contracts

2.  In a group life insurance policy, the claim amount is paid to the representative by the insurer and not
to the individual, whose life was assured.
 There should be a steady stream of young and energetic new entrants into the group and exit of old /
retired and impaired. In short the group should be dynamic.
 In group insurance individual insurer will not chose the amount of insurance cover.

3. Group insurance is an insurance that covers a defined group of people, for example the members of a
society or professional association, or the employees of a particular employer.
Grouping individuals together allows insurance companies to give lower rates to companies, "Providing
large volume of business to insurance companies gives us greater bargaining power for clients,
resulting to cheaper group rates."
This body may be the Employer, who is interested in obtaining benefits for his Employees through
insurance. The body may be an Association of individuals through whom the collective interest of the
Members are safeguarded, like a trade, or professional association. A Lending Institution can make
arrangements through a group policy to protect its interest against defaults of the debt by the debtors.
Group Insurance can best be defined by comparing it with individual insurance. However, we have a
definition given by an American Judge, seventy years ago.
CONCEPT

4. Group
Insurance