Group Insurance

Group insurance is one of the most cost effective ways of providing protection against the financial losses caused by death, disability or retirement to a group of individuals who are associated with the policyholder by some common relationship other than insurance.

We at Mercantile Islami life offer group insurance schemes such as Employer-Employee, Professionals, Co-operatives and NGOs etc. What makes these schemes attractive are low premium, simple insurable conditions and easy administration in putting a single master policy covering all the employees/members all the employees/members.

Who can take the scheme:
Any organization, institution, professionals or NGO having at least 10 (Ten) employees/ members can take a group insurance schemes.

Benefits to the employer:
Group life/hospitalization insurance comes in the service benefit package of the employees. It positively contributes to the morale and productivity of the employees and helps to attract and retain employees over a longer time period, enhancing the public relations and employee relations image as a consequence. Employers can also obtain a tax shield for the cost of contributing to the plan.

Benefits to the employee:
Preexisting medical conditions and/or the high cost of individual coverage tends to prevent employees from purchasing individual coverage packages. This is where an employer-sponsored plan comes in handy. Such plan allows virtually all members of a given group to be insured, regardless of their prior health history. A contributory plan allows an employee to pay a lower rate per unit of benefits than is available with individual coverage. A non contributory plan is even better for the employees, where the employer pays for the coverage that employees would otherwise have to pay for with personal money.

Premium rate fixation:
Usually premium rates are fixed on the basis of age distribution, sum assured and profession of the group clients. Sometimes, group insurance departments quote premium rates based on business.

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