What are GMC and GPA insurance policies?

Know about GPA and GMC policies, their benefits, and coverage details.
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What are GMC and GPA insurance policies?
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3 min
01-June-2023

Most employers today offer group health insurance policies to ensure their employees’ well-being. There are two types of plans that employers provide, a Group Medical Coverage (GMC) and a Group Personal Accident (GPA) insurance policy.

What is a GPA insurance policy?

Here is what you need to know about GPA insurance plan:

  • A group personal accident policy or GPA provides financial assistance during unforeseen circumstances.
  • You get coverage for treatments in case of an accident that leads to disability or fatal injury.
  • The employer pays the premium for the group personal accident policies. In some cases, a certain amount gets deducted from the employee’s salary and the employer pays the remaining amount.

What is a GMC insurance policy?

Here is what you need to know about the GMC insurance plan:

  • A group medical coverage or GMC is a health insurance policy that covers a group of employees. The policy offers financial coverage to take care of medical expenses when needed.
  • GMC policies are cheaper than individual health policies as the coverage amount and risks get divided among the employees.
  • The employer either pays the entire premium amount or the premium gets divided between the employee and employer.

Differences between GMC and GPA insurance policies

GMC and GPA insurance policies may sound similar but have different features and benefits. The following table shows the differences between these two policies:

Parameters

Group medical coverage

Group personal accident

Type of coverage

It is an indemnity-based plan, which means the policy will cover the exact amount an employee incurs if covered under the sum assured limit.

It is a fixed benefit plan, which means the policy will provide a lump sum amount as per the terms and conditions of the insurance. The employee will receive the amount based on the nature of the injury suffered.

Scope of coverage

Covers hospitalisation, medicine, diagnosis, maternity care, and OPD treatment expenses of the covered employees.

Covers accidental death and treatments for disability (total or partial) caused due to accidental injury.

Customisation

You can customise the GMC insurance policies, depending on the number of employees, type of occupation, industry of the employer, etc.

You cannot customise the GPA insurance policies, as these work as a fixed benefit plan.

People covered

The GMC policy provides coverage to the employees as well as their spouses, children, and parents in some cases.

The GPA policy covers only employees under the plan.


What does a GMC policy cover?

A group medical policy covers the following expenses incurred by employees:

  • Covers pre-and post-hospitalisation charges including medicines, medical reports, X-rays, and other expenses. Also, hospitalisation if admitted for more than 24 hours.
  • Covers pre-existing and critical illnesses/diseases, such as diabetes, cancer, hypertension, and more. However, check with the insurer if you have any waiting period before availing of the benefits.
  • It also covers maternity care expenses and medical expenses for newborn children.

What does a GPA policy cover?

GPA insurance covers the following expenses incurred by employees:

  • Covers treatment costs of accidental injuries and if it leads to total, permanent, or partial disabilities. You also get coverage for accidental death. In such a case, the nominee receives the sum insured.
  • The plan also provides coverage for ambulance transportation expenses and charges.
  • Covers room rent and daycare procedures expenses during the hospitalisation period.
  • The plan covers the dependent children in case of permanent disability or death of covered employees.

Overall, GMC, and GPA insurance policies are significant for employees' welfare. Both these provide multiple benefits to the employees.

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Disclaimer

Bajaj Finance Ltd. (BFL) is merely a distributor of third party products from Assistance Services providers such as CPP Assistance Services Pvt Ltd, Bajaj Finserv Health Ltd.(BFHL), AWP Assistance India Pvt. Ltd. (Allianz), Doc Online Health India Pvt Ltd. etc. Issuance of the product is at sole discretion of Assistance Company or Services provider . The product and services or benefits assured under the product shall be governed by respective partner’s product T&C’s and BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. Your purchase of an assistance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any product. For more details on terms and conditions, inclusions and exclusions please read the product sales brochure carefully before purchase or subscription. All product information such as membership fees, benefits, exclusions, value added services, etc. are authentic and solely based on the information received from the respective value added service provider or Assistance company.

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