Focusing on the Employees of Corporate Organizations, Government Corporations and/or Establishments

 

Based on the term group, this is an auto insurance policy that covers the collection of people that came together to achieve a specified purpose. Here, specifically we are focusing on the employees of corporate organizations, government corporations and/or establishments. 

 

Generally, group insurance is usually arranged to cover personal

insurances (risks) such as auto insurance, life assurance and health

insurance. In providing this type of insurance, the underwriters have

two types of insurance cover.

 

Option 1: This is the cover on the subject-matter of insurance, that is

the vehicle and the cover are detailed below;

  • Comprehensive
  • Collision
  • Liability
  • Rental car
  • Oversight cover.

 

Option 2: These are the statutory accident benefits that are optional

like;

  • Death benefit
  • Income replacement
  • Caregiver benefit
  • Total incapacitation benefit.

 

The process of underwriting auto insurance risks involved the

consideration of different factors but these are jettisoned for the

purpose of group insurance. The insurance companies bear in mind

the volume of people covered and the diverse nature of the risks

involved. This eliminates the problem of adverse risk selection

against any member of the group.

 

For ease of administration, the insurer will issue a single policy to

employer termed Master policyholder. It the duty of the employers to

appoint a unit within their establishment to handle issue relating to

insurance and become the communication link between the

employer/employee and insurance company. This unit is saddled

with the responsibility of dealing with the insurers in time of new

business, deletion of vehicles, additional vehicles, annual renewal

and claims notification until settlement.

 

In view of the aforesaid, premium payable is very low due to the

discounted rate given by the underwriters. This is premised on the

fact that the large volume of employees (e. g 10, 000 for a big

corporation) gives the employers the bargaining power of lower

premium and premium payable may just be around 25 – 30% of the

actual premium. Depending on the employers, premium payment

may be by direct monthly billing or payroll deductions.

Personal Package Insurance Policy

Personal package policy is a modification to the method of issuing

single insurance policy per risk, thus a process of combining more

than one risk/policy as a package insurance policy. These include

auto, home, excess liability, boat or yacht etc. Before we continue to delve into the intricacies of personal package policy, let us first consider the benefits/advantages derivable under this insurance.

 

Hefty premium discount is available to you rather than when you

cover each risk under a separate policy. Combined and lower deductibles. Normally, each class of insurance has applicable deductible and when the insurances are package into a single policy, your deductible is at the barest minimum.

 

Better insurance coverage. The umbrella cover extension under the

package insurance placed you under better protection compare with

other classes where such extension is not available. Flexible terms, conditions and warranties. Actually, all insurance policies are subject to terms, conditions, exceptions and warranties and non-compliance with these requirements form the basis of repudiating a claim. 

 

Under package insurance, these stringent rules are more relaxed due to combination of policy involved and loyalty of the customer by trusting the insurance company with all the personal/property insurances.

 

Single effective and renewal date. Your insurance policy is having a

single renewal date. So, the palaver of several renewal dates of

different policies are taken off your neck. Also issue of error and

omission has become things of the past.

 

Ease of monthly premium payment. Just one remittance every

month, the difficulty of agglomerating premium under different

policies and charges associated with such remittance is taken off.

Dealings with one insurance company only. You are having just one

underwriter and this save you the time and trouble of transacting

business with many insurance companies.

 

Ease of administration. With package insurance policy, the insurers

find it easier to be in-charge than underwriting each risk under

separate policy. Therefore, the workload is drastically reduced in

term of documentations.

 

Now that we scrutinized the benefits under personal package

insurance policy, there is need to dig a little deep into policy

coverage. Here we are considering the additional cover or

extensions available under this policy.

 

Umbrella insurance. This cover serves as a safe haven when the

underlying liability limits is exceeded. The excess liability that

supposed to fall back to the policyholder is been shouldered under

the umbrella covers.

 

Valuable insurance. The householder comprehensive covers the

property at home and there is limitation under the policy. Therefore,

other valuable items such as fur coats, work of arts, antiques,

jewelry’s, and collectibles are covered by extension under the

package insurance policy.

 

Watercrafts. As a matter of fact, some countries or cities are

surrounded by water. It is not uncommon that transit by water is the

major way of life connecting of area to the other. The possession

and/or usage of boats, yacht and other vessels are daily routine,

these vessels can be covered under the extension of the personal

package insurance policy.

 

Other risks/coverage. These can be bundle under the package

policy, they include;

  • Rental and landlord insurance.
  • Flood insurance.
  • Earthquake insurance.
  • Cyber insurance.
  • Identify fraud protection
  • Recreational vehicle insurance.

 

What is “Term Group”?

It is an insurance arrangement where the insurance companies put into consideration the law of large number to form a pool of risks.

 


 

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