BFSI Overview

NAME: ISHA PATEL CLASS: BBA 1ST YEAR

HEALTH INSURANCE
Health Insurance consist of a package of various types of insurance related to health. For Example Medical Insurance is one of the major part of Health Insurance however in most of the cases, dental issues are not covered in policy so there is another Dental insurance policy which covers dental problems and is also a part of health insurance. The subcategory of health insurance also involves the injuries or accident at workplace insurance benefits.

Group Life Product

A) Group Gratuity Scheme B) Group Superannuation

GROUP LIFE PRODUCT

In Group Insurance large number of individuals are covered under a single policy called Master policy. The insurance contract is with the body that represents the individuals, the employer or the association. Because the contract is with the body, that body is the policy holder. The individuals are the beneficiaries. The amount and the terms of insurance are negotiated by the policyholder and not by the individual beneficiaries.

A) Group Gratuity Schemes

Group gratuity scheme are also offered to employer and are related to gratuity of employees. Gratuity is paid to employees who retire or die after long years of service. Since 1972, payment of gratuity has been made compulsory by the Payment of Gratuity Act. The amount of gratuity is linked to the number of years of service and salary drawn during the last few years.

Advantage of Group Gratuity Scheme

It can guarantee a certain amount of gratuity which would be more than what the rules provide, particulerly for those who die young and with relatively lesser services. It makes it easier to fund the gratuity liability of the employer. Actuarial advice is available from the insurer about the adequacy of the funds.

B) Group Superannuation Scheme

Group superannuation are also offered to employers and are related to the payment of pensions to employees. The group superannuation schemes offered by insurers are intended to help employers administer the pension funds.

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