Let us explore more on this.
A group insurance policy gives us advantages of customised coverage at very competitive cost (premium rates). A person can avail group insurance policy provided he belongs to a group which is taking the policy.
With an intent to protect the interests of the policy holders, the administration of group insurance policies are standardised and regulated under “Guidelines of Group Insurance Business”
As per the guidelines, a “Group” should consist of persons who come together with a common interest. For instance, in employer-employee groups, a group of employees engage in a common economic activity and hence form a group.
Non employer-employee groups like holders of the same credit card, savings bank account holders of a bank or members of the same social or cultural association and customers of a a certain business can also be clubbed to form a group. But, the fundamental principle need to be the group which is taking the policy should have an insurable interest on the members of the group.
Please login or Register to submit your answer