Question

State any three features of Group Insurance.

Answer 1

1. Insurance is provided to all employees without any evidence of insurability.
2. It provides risk coverage to the employees as long as they remain in the service of the employer.
3. Group life insurance is basically a contract between the insurance company and the employer. The policy issued to the employer is called a master contract.
4. The premium is generally paid jointly by the employee and the employer.
5. The amount of the premium is payable at a fixed rate without regard for the age or salary of the employees.
6. In cases of injury or death to an employee, the claim received by the employer is paid to the employee or his nominee.