Quick answer: Group personal accident insurance (GPA) is a policy you buy for your team. It pays a fixed sum if an employee dies, is disabled or is injured in an accident, usually anywhere. It is optional in India. It differs from employees’ compensation, which the Code on Social Security, 2020 makes you pay for injuries arising out of employment.
- Employees’ compensation now sits in Chapter VII of the Code on Social Security, which replaced the Employees’ Compensation Act, 1923.
- Death compensation is 50% of monthly wages times an age-based factor, or the notified amount if higher.
- An accident while commuting from home to work can count as arising out of employment under section 74(4).
- ESI-covered employees get employment-injury benefits from ESIC instead.
How does a GPA policy work for employees?
You pick a sum insured per employee, pay one premium, and the insurer pays out on a covered accident.
A typical gpa policy meaning in HR terms covers four events: accidental death, permanent total disablement, permanent partial disablement and temporary total disablement. Partial disablement pays a percentage of the sum insured from a table in the policy.
GPA does not pay for illness. Ever. For that, the family relies on group term life insurance and the hospital bill goes to group medical cover.
How is GPA different from employees’ compensation?
One is a law you can’t contract out of. The other is a policy you choose to buy.
| Point | Employees’ compensation | Group personal accident |
|---|---|---|
| Legal basis | Code on Social Security, ss.74 to 76 | Your insurance contract |
| When it pays | Injury arising out of and in the course of employment | Any covered accident, often 24 hours a day |
| Death amount | 50% of monthly wages × relevant factor, or the notified minimum | Your chosen sum insured |
| Funeral expenses | At least ₹15,000 | As per policy |
| Who pays the claim | You, the employer | The insurer |
The Code’s compensation formula in section 76 sets those amounts.
Many employers use a GPA policy to fund the liability. That works only if the policy covers work accidents and the sum is large enough.
If it falls short, you still owe the difference to the employee or the family, along with 12% a year interest on any compensation you pay late under the central rules.
Do ESI employees need GPA as well?
Not for work injuries, but you may still want it.
Employees covered by ESI on wages up to ₹21,000 a month claim employment-injury benefits through ESIC. A weekend road accident, though, isn’t an employment injury. GPA fills that gap for lower earners and for everyone above the ESI line.
Here’s what foreign employers often miss. Location doesn’t matter. A remote employee working from home is still covered by employees’ compensation for injuries during work. Check that your GPA wording doesn’t exclude home-based work.
How does Remunance handle accident cover for your team?
Remunance is the legal employer, so employees’ compensation liability sits with us, and we can place group accident cover through our benefits administration team. Premiums are passed through at cost. Our compliance management service also helps companies already employing in India check their cover against the Code. To compare your current policy with the law, have our benefits team review your cover.
What else do people ask about GPA insurance for employees?
Is group personal accident insurance mandatory in India?
No. What’s mandatory is employees’ compensation for work injuries. GPA is one way to fund it and extend cover, and our statutory vs non-statutory benefits page shows where it sits.
Does GPA cover accidents outside working hours?
Usually, yes. Most GPA policies cover accidents 24 hours a day, worldwide. Check the policy wording to be sure.
What is the difference between GPA and GTL?
GPA pays only for accidents. Group term life pays on death from any cause, including illness.