Companies are concentrating on group cover for their employees, their aim to retain and encourage the talent of the workforce, long term well-being of the employees and so on and so forth. According to data from IRDA, Group Insurance premiums have increased 2.5 times in April-December 2009 period (Rs.17,979 crore to Rs.7,477 crore). “Companies are increasingly engaging Life Insurance firms to manage certain savings-linked pay components of employees to maximize benefits,” said SY Siddiqui, HR head, finance & IT at Maruti Suzuki India.
In a group insurance scheme, an employer pays the premium for the section of employees covered for health, gratuity and superannuation, etc. Companies can manage the pool themselves or opt for a group insurance scheme, though they prefer the expertise of life insurers for higher returns. Even a 1% extra return for every premium paid for 15-20 years can make a huge difference in the returns for employees.
Cost of group insurance for Health Insurance schemes is lesser than the individual health insurance due to minimal operational expenses thus more profitable business for Insurance Companies. They approach public as well as private firms to broaden their horizon. According to the data from IRDA, new premium collections in the group insurance category between April and December grew 63% to Rs.17,979 crore from Rs.11,059 crore a year ago. This sharp growth had helped the private insurers show 23% raise to Rs.3,740 crore in group insurance whereas in individual group insurance the growth was marginal. LIC has 80% market share in group insurance category alone and recorded a growth to 78% (Rs.14,238 crore) from sales of group insurance policies by third quarter of 2009.
Companies prefer dealings of group insurance covers to the qualified professionals because of the complexities and details involved. Public and private companies have increased the salary packages in the past two months which has inflated the gratuity and the superannuation amounts, which is characteristically fall under group insurance schemes.
Possibly Related Posts:
- Life insurers increase in group insurance sales
- LIC – GROUP PLAN | GROUP CRITICAL ILLNESS RIDER | LIC | OVERVIEW | BENEFITS | EXCLUSIONS | TAX BENEFITS | FEATURES
- LIC – GROUP PLAN | GROUP GRATUITY PLUS PLAN | LIC | OVERVIEW | ADVANTAGES | BENEFITS – TAX BENEFITS | FEATURES | RISK BORNE BY INDIVIDUAL MEMBERS
- LIC – GROUP PLAN | GROUP MORTGAGE REDEMPTION ASSURANCE SCHEME | LIC | OVERVIEW | PREMIUM DETERMINATION | FEATURES
- LIC – GROUP PLAN | GROUP LEAVE ENCASHMENT SCHEME | LIC | OVERVIEW | BENEFITS | PREMIUM PAYMENTS | NATURE OF LIABILITY | FEATURES
- LIC – GROUP PLAN | GROUP SAVINGS LINKED INSURANCE SCHEME | LIC | OVERVIEW | OBJECTIVES | PREMIA | BENEFITS – TAX BENEFIT | INTEREST ON SAVINGS | ELIGIBILITY REQUIREMENTS
- LIC – GROUP PLAN | GROUP SUPERANNUATION SCHEME | LIC | OVERVIEW | ADVANTAGES | BENEFITS – TAX BENEFIT | CONTRIBUTION | PENSION OPTIONS | ELIGIBILITY REQUIREMENTS
- LIC – GROUP PLAN | GROUP GRATUITY SCHEME | LIC | OVERVIEW | ADVANTAGES | BENEFITS – TAX BENEFIT | FEATURES – SPECIAL FEATURES
- LIC – GROUP PLAN | GROUP INSURANCE SCHEME IN LIEU OF EDLI | LIC | ADVANTAGES – EMPLOYER/EMPLOYEE | BENEFIT | PROCEEDURE
- LIC – GROUP PLAN | GROUP (TERM) INSURANCE SCHEME | LIC | OVERVIEW | PREMIUM PAYABLE | SCHEMES | | FEATURES – Premium, Benefit, Eligibility