A health insurance is one of the most important benefits that any employer can provide their employees. It’s the best way to protect employees and when they are less burdened by financial stress, it is likely to boost everything from attendance and productivity, to even company profits!

When it comes to employee health insurance, Group Medical Covers (GMC) and Group Personal Accident (GPA) Insurance are two common options to choose from. But they are very different policies with distinct features and benefits.

Let’s take a look at both policies, so that you can better understand them and choose whichever is best for your company and your employees:

A Group Medical Cover, or GMC, is a type of health insurance that is offered to a group of people, such as the employees of the same organization. Their dependents, including spouse, children, and parents, can also be covered under this.

Generally, such a policy is offered as a benefit by an employer, who bears the cost of the premium. As the risk of this kind of health insurance is spread across a pool of insured individuals, the premiums are kept low.

• Hospitalization Expenses – Hospitalization expenses are covered in case of admission of more than 24 hours.
• Pre and Post Hospitalization Charges – It covers expenses that are incurred before and after hospitalization, including medical reports, cost of medicines, X-rays, etc.
• Pre-Existing Diseases – This covers pre-existing illnesses such as diabetes, hypertension, etc. from day one, without any waiting period
• Critical Illness Cover – Critical illnesses such as cancer, cardiovascular diseases, etc., can be covered in the policy.
• Maternity and Newborn Coverage – There is also coverage for maternity expenses and medical expenses for the newborn baby as an add-on.
• Other Add-Ons Available – GMC covers also might come with the option to choose add-on covers at a small additional premium. Common add-ons include Maternity cover, Personal Accident cover, or AYUSH treatment cover.
• Other Benefits – A GMC also often includes coverage for daycare procedures and outpatient medical treatments.

A Group Personal Accident Insurance (GPA) is a type of insurance that protects a group of people financially in the case of any unforeseen accidents that result in death, fatal injury, or disability.

Accidents can occur at any time, and can have unexpected health consequences. Thus, a GPA policy comes with certain in-built features to cover employees in case an accident leads to their death or disability which can affect their income. It provides a measure of financial protection for them or their dependents.

Like a GMC, the premium of a GPA is also borne by the employer, or it is contributed to from an employee’s salary.

• Total or Partial Disablement – If an accident causes partial, total, or permanent disabilities (like loss of sight or limbs) it provides financial coverage.
• Accidental Death – In the worst case of accidental death, it provides financial protection for dependents.
• Ambulance and Transportation Expenses– There is also optional coverage for ambulance charges and transportation expenses.
• Hospitalization Expenses– It provides coverage for hospitalization expenses like room rent and daycare procedures when they are due to an accident.
• Benefits for Children – In case of permanent disablement or death, it covers certain benefits for dependent children, such as costs of education or marriage expenses.