Tuesday, February 19, 2013

Blanket Insurance - A brief information to all

Whether Blanket Insurance and Group Insurance are same? The answer is NO. So what is blanket insurance? A Blanket Insurance can be considered as one type of Group Insurance by keeping certain condition. A very quick description for Blanket Insurance can be something like “The Coverage which is provided to a group of people/individuals who are exposed to a common hazard but who are not individually identified”. The people/individuals who comes under this coverage will not be the same, they will change frequently.

Blanket Insurance is typically a type of Group Insurance
  1. Insurer will not be providing any policy bond to each covered person included in the group
  2. Individual will not or cannot apply for coverage
  3. Automatic coverage will be happening of a particular event, like purchasing flight ticket, bus ticket, credit card etc.

Specific types of groups, such as , school students, passengers of train, members of charitable trust etc. Normally Accident or Sickness Protection coverage’s are available in these kind of insurance. Some will have disability Income coverage’s also. There are many clauses, for example, for an accident, if they have covered blanket insurance for passengers for a specific area, and if the accident happened in another area, the insurance is not covered. Another example if a blanket accident insurance is given to all members participating in fire fighting training, then the benefits are paid if any accidents occur while undergoing fire training only.Other things that needs to be noted is for there won’t be underwriting involved what so ever. In most cases the beneficiary may not be aware of the existence of such coverage.