Bank's group coverage: Affordable, easier to acquire; but check for limits

Group insurance from banks may be affordable and easy to onboard but customers must watch for coverage limits, exclusions, and renewal risks before signing up

Sagar Malik, 54, a Delhi-based content writer, was recently informed by his bank that a group policy for which he had been paying the premium for several years was being terminated. The abrupt termination of the policy left him feeling short-changed.

 

Range of group policies

 

Banks offer a wide range of group insurance plans — personal accident, health, hospital cash, home insurance, credit protection, and critical illness. “Typically, these products are linked to savings accounts, fixed deposits (FDs), credit cards, and other core banking products,” says Arti Mulik, chief technical officer, Universal Sompo General Insurance. 

 

Some policies are complimentary, with