This thread will attempt to breakdown/simply the Group Personal Accident Policy.
Group Personal Accident Insurance provides compensation to an employee in the event of an accident causing death or injury anywhere in the world irrespective of whether it is work related or not.
What are termed capital sums (multiples of earnings) are paid in the event of death or certain specified injuries, such as the loss of limbs or sight as may be defined in the policy and this policy can (typically) be purchased as a stand-alone policy or as an add-on to a Group Life Assurance policy previously discussed in previous ed-posts.
When this policy is purchased as an extension of the Group Life Assurance policy, the policy will pay benefits to injured employees as shown below:
- Accidental Permanent Disability: This involves payment of a lump sum of the injured employee’s Annual Emolument in the event that the insured person is unable to engage in his/her usual occupation due to accident and there is possibility that the disablement will continue for the remainder of life.
- Accidental Temporary Total Disability: in the event that the insured person is temporarily incapacitated, a weekly benefit will be payable for a maximum period of 104 weeks. It may be an agreed amount per week or a percentage of wages per week.
- Accidental Medical Expenses: This entails reimbursement of medical expenses incurred by the employee (or the employer on behalf of treatment on the employee) resulting from hospitalisation due to an accident up to a limit or percentage of annual emolument.
The benefits listed above are not set in stone and may vary from one insurance company to another.
Please stay tuned for the next ed-post.