A group insurance policy gives us advantages of customised coverage at very competitive cost (premium rates). 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. Any group should not be formed with a main purpose of buying group insurance. There has to be a clear evident relationship existing between the member and the entity/group buying insurance for services beyond only insurance. Any entity/group negotiating discounted rates and then searching for members to be added int the group is not allowed and not legitimate.
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