Insurance against the risk of death, accident, etc. for the insured consists of a homogeneous group of people using one policy.”
Financial Fervices Authority
What is Group Insurance?
Group insurance is an insurance program that provides coverage for a number of people in an insurance contract that has a special relationship with the policyholder. Group insurance means that a group of people who have a special relationship with the policy owner get insurance protection in a single contract. Group insurance means that a group of people who have a special relationship with the policy owner get insurance protection in a single contract.
This type of group insurance is very useful for workers who work in the same auspices of the same company.
Characteristics of Group Insurance
Group Insurance has the understanding of a group of people who have a special relationship with the policy owner and get insurance protection in a single contract. There are differences in the characteristics of group insurance with other types of insurance, which are as follows:
- Underwriting: the group no longer reviews individual health, habits or moral issues. but efforts were made to reach the group’s mortality and morbidity estimates.
- Master contract: use of a master contract with or without insurance certificates such as policies obtained by individuals.
- Lower costs: in group insurance, protection is provided at a lower cost because the group approach allows the use of distribution and administration unlike individual insurance.