Plan Cover Staff asked 3 years ago
If they are from different states, will the insurance company accept them as members? Are there any companies that offer insurance for a group of friends? We have a group of 5 friends who are in their 20’s and we want to buy insurance for them. We are all residents of Delhi, but all have jobs in different cities.
1 Answers
Best Answer
Srinivasan Mahadevan answered 3 years ago
The simple answer is No. A group of friends cannot buy group insurance by forming a group unless the definition of the group is satisfied as per local regulations.
Let us explore more on this.
A group insurance policy gives us advantages of customised coverage at very competitive cost (premium rates). A person can avail group insurance policy provided he belongs to a group which is taking the policy.
With an intent to protect the interests of the policy holders, the administration of group insurance policies are standardised and regulated under “Guidelines of Group Insurance Business”
As per the guidelines, a “Group” should consist of persons who come together with a common interest. For instance, in employer-employee groups, a group of employees engage in a common economic activity and hence form a group.
Non employer-employee groups like holders of the same credit card, savings bank account holders of a bank or members of the same social or cultural association and customers of a a certain business can also be clubbed to form a group. But, the fundamental principle need to be the group which is taking the policy should have an insurable interest on the members of the group.
Let us explore more on this.
A group insurance policy gives us advantages of customised coverage at very competitive cost (premium rates). A person can avail group insurance policy provided he belongs to a group which is taking the policy.
With an intent to protect the interests of the policy holders, the administration of group insurance policies are standardised and regulated under “Guidelines of Group Insurance Business”
As per the guidelines, a “Group” should consist of persons who come together with a common interest. For instance, in employer-employee groups, a group of employees engage in a common economic activity and hence form a group.
Non employer-employee groups like holders of the same credit card, savings bank account holders of a bank or members of the same social or cultural association and customers of a a certain business can also be clubbed to form a group. But, the fundamental principle need to be the group which is taking the policy should have an insurable interest on the members of the group.
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