Group Term Insurance
Group Term Insurance Scheme is meant to provide life insurance protection
to groups of people. Administration of the scheme is on group basis and cost
is very low. Under Group Term Insurance Scheme, life insurance cover is allowed
to all the members of a group subject to some simple insurability conditions
without insisting upon any medical evidence.
Group Term Insurance Scheme is at present offered under One Year Renewable
The Premium rates applicable to a group at commencement depend on its size
as also the occupation, employment and working conditions of the members
of the group. Subsequently, the Premium Rates may be reviewed on the basis
of actual experience. In some schemes, a part of the excess of premium over
actual claim is allowed as rebate from subsequent year's premium as Experience
Rating adjustment or Profit Sharing if the claim experience is favorable.