Group insurance is addressed to groups of people with common property (such as employees/ partners within a company). Also, very common are plans for group insurance for borrowers in order to repay a loan in case of Total and Permanent Disability.
The group should meet the following conditions:
- The group should have been formed before applying for insurance
- It should be composed of at least 10 people
- People should be under the age of 65 years old
The group is expanded and includes the dependent members of the family of the insured, such as his/her spouse and children aged 1 month to 18 years old.
In case of death, the fund of coverage is paid to the beneficiaries of the policyholder. The fund may be either a fixed amount or an amount which is equal to the multiplied amount of gross monthly salary.
In case of Total and Permanent Disability caused by an illness, the fund of coverage is paid to the insured.
In case of accidental death the fund of coverage is paid to the beneficiaries of the insured as an additional fund of life insurance. In case of total and permanent disability caused by an accident the fund of coverage is paid to the policyholder. In case of partial and permanent disability caused by an accident a total % rate of fund of coverage (depending on the degree of disability) is paid to the policyholder.
In case of temporary disability following illness or accident, the insured is paid monthly from the 1st day of disability, or after a waiting period (depending on the coverage of the main insurance provider of the insured) and up to 12 months maximum as appropriate.
Covers the expenses made by the employee and arise due to the accident, performed within and outside the hospital, and include payment of qualified doctors, medication, radiology and diagnostic tests, bandages and slings. The specific allowance is offered in group insurance plans and aims at covering the accident expenses.
In case of hospitalization either in hospital stay or private hospital, caused by accident or illness, the allowance is paid daily from the first day of hospitalization and up to the maximum total days of the accident or illness, regardless of the amount of the hospitalization expenses.
Expenses are covered (usually 80% of the expenses) which arise from hospital or private hospital stay, illness or accident per year or per incident up to a limit. If the insured claims compensation from a private insurance provider or other private agent of at least 20% of the total, then the company will pay 100% of the difference, up to the maximum limit, that may arise.
It covers expenses (usually 80% of the expenses) such as doctor’s visits, laboratory/microbiological/radiology tests and medication of the maximum annual limit.
It pays allowance which covers expenses for natural childbirth, cesarean section and abortion.
In case the insured undergoes a surgery, an allowance is paid calculated using a table of allowances calculation. The allowance is normally paid in case of public hospital hospitalization.
If diagnosed with one of the following severe illnesses, then the fund of coverage is paid. Severe illnesses are: heart attack, coronary artery disease which requires surgery, stroke, cancer, kidney failure, paralysis/paraplegia, total vision loss, limb loss.
Group insurance plans offer lump sum or pension plans, which are distinguished based on the following criteria:
- Benefit and contribution structure
- Stock investment policy
Benefits or Contributions structure is divided into:
- Defined Benefit plans, benefits are determined up front and then the necessary contributions are calculated in order the benefits to be provided
- Defined Contribution plans, contributions (fixed) are determined up front for each insured, thus the final benefit provided to him depends on the accumulation of contributions and the respected investment returns
Inventory and investment policy are divided into:
- “Traditional Products”, total of inventories are invested for all policyholders. The insurance company guarantees a minimum interest rate of invested inventories and the policyholders participate in investment outperformance
- “Unit – Linked investment products”, the customer selects the investment policy for his own invested inventory, and selects between various categories of mutual funds that are invested in Greece or abroad