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    Group &amp Employee Insurance

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    m_dattaias
    Group and employee insurance provides insurance coverage to groups of people through their employers or membership in organizations. It is more cost effective for insurance companies than individual policies since it is administered through a single master policy. Common types of employee benefits included in these plans are medical, retirement, life, and disability insurance. While group insurance improves productivity and reduces employee turnover, it also has disadvantages like limiting employees' ability to choose their own coverage levels.

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    Group &amp Employee Insurance

    Uploaded by

    m_dattaias
    16 views13 pages
    Group and employee insurance provides insurance coverage to groups of people through their employers or membership in organizations. It is more cost effective for insurance companies than individual policies since it is administered through a single master policy. Common types of employee benefits included in these plans are medical, retirement, life, and disability insurance. While group insurance improves productivity and reduces employee turnover, it also has disadvantages like limiting employees' ability to choose their own coverage levels.

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    Group and employee insurance provides insurance coverage to groups of people through their employers or membership in organizations. It is more cost effective for insurance companies than individual policies since it is administered through a single master policy. Common types of employee benefits included in these plans are medical, retirement, life, and disability insurance. While group insurance improves productivity and reduces employee turnover, it also has disadvantages like limiting employees' ability to choose their own coverage levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    16 views13 pages

    Group &amp Employee Insurance

    Uploaded by

    m_dattaias
    Group and employee insurance provides insurance coverage to groups of people through their employers or membership in organizations. It is more cost effective for insurance companies than individual policies since it is administered through a single master policy. Common types of employee benefits included in these plans are medical, retirement, life, and disability insurance. While group insurance improves productivity and reduces employee turnover, it also has disadvantages like limiting employees' ability to choose their own coverage levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    GROUP & EMPLOYEE

    INSURANCE

    By
    SHABIR HAMEED
    FN-34
     Group Insurance is that which covers a group
    of people, usually who are the members of
    societies, or professionals in a common
    group.
     Employee Insurance specifies the
    organization where the employees belong.
     The basic concept of insurance, i.e., risk
    sharing is more evident here.
    Features

     Employee insurance gets big business for an


    insurance company with minimum operational
    expenses (under one master policy issued to an
    employer, union or any recognised group), it is
    usually less expensive than individual policies.
     They are usually provided to permanent
    employees and not to temporary, contract
    employees or trainee interns.
     Employers voluntarily provide a variety of
    benefits as a part of incentives which also
    doubles as a form of motivation.
    Types of Plans based on contribution

     If employees are made to pay a part of their


    salary for the insurance, it is called
    contributory plan
     If the company directly pays the premium
    without any salary deduction, it is called non-
    contributory plan
    Types of Employee Benefits

     Medical Insurance
     Retirement Plan
     Life Insurance
     Short-term Disability Insurance
     Long-term Disability Insurance
     Dental Insurance
    Advantages
     Improve productivity
     Reduction in employee turnover
     Cost effective
     Administrative cost
     Underwriting cost
     Billing
     Premium collection
     Total cost of designing benefits
    Disadvantages

     Limited opportunities for employees to


    choose their level of coverage
    Fee-for-service

     Coverage for specific medical expenses


     Coverage for dependents with substantial
    discretion
     Two methods for arranging Fee-for-service
     Basic coverage with supplementary major
    medical insurance
     Comprehensive major medical insurance without
    separate benefits
    Moral Hazard with Fee-for-service

     Premium contributions of employees not


    related to claim costs; as a result, they act
    riskier
     Excessive utilization of health care; demand
    for health care with hi-tech facilities even for
    small illness.
    Reduction in Moral Hazard under Fee-
    for-service
     Increasing deductibles; hi-tech health care,
    higher deduction for salary
     Tie-up of organization with certain specific
    health care centres
     Close watch by the insurer
     Health Care Organization (HMO)
     Merging of care and insurance functions
    Different Plans

     Coverage for dependents


     Cross subsidies among employees that are
    inherent in group coverage; same
    contribution, different level of risk
     Govt. mandated benefits
    THANK YOU . . .

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