Throughout the corporate insurance policy contracting process, there are several parties interested in the progress of the procedures. In all, there are five parties directly involved.
Understand a little more below about each of the parties and the role played throughout the process:
Stipulating
The policyholder is the company or legal entity that is responsible for negotiating and contracting insurance for its employees.
All responsibility for negotiations, payments and contractual amendments rests with the contracting company, such as:
- Renovation;
- Term modifications;
- Cancellation;
- Inclusion of new policyholders.
insurer
The insurer is the company regulated and qualified to carry out all the management of the policy being contracted by the stipulating party.
All responsibility for compliance with all agreed terms rests with the insurer, as well as the payment of indemnities and analysis of coverage.
Insured
The insured is the one whose interests are guaranteed by the contracted policy, throughout its term. This is the object of the policy, as an employee of the company.
For corporate life insurance , the insured will always be an individual.
Recipient
The beneficiary of the corporate life insurance is the party that will be contemplated with the payment of the indemnity , in case of an accident with the insured person.
However, there is no rule or law that requires a family relationship. In other words, it is not necessary to have any kind of blood relationship or kinship.
In this way, anyone can be declared as the beneficiary of a policy.
Insurance broker
Finally, the insurance broker is a company that also needs authorization from SUSEP to operate, just like the insurance company. However, they have different roles.
The insurer acts as a provider entity, while the brokerage firm acts as an intermediary entity , as it is responsible for negotiating the interests of both parties.
What is the duration of corporate life insurance?
Corporate life insurance has a grace period after the start of its term, which may vary from insurer to insurer.
This period can vary from 30 to 60 days, depending on the negotiation carried out between the parties responsible for the contract. During the grace period, it will not be possible to count on the coverage.
However, if an incident occurs within that period before the contract term begins, the beneficiary must contact the insurer to check whether there is any clause covering emergency situations.
Even so, if the contract does not have any condition that excludes the grace period, the insured person will not be able to count on the coverage.
After the contractual grace period, the most common term is 12 months, with the possibility of extending it to 24 or 36 months.
Who is entitled to corporate life insurance?
When including the insured person in a corporate life insurance policy , it is necessary to indicate the beneficiaries, who will be indemnified, if there is any incident.
However, anyone can be indicated as a beneficiary, just be included by the insured in the insurance policy.
The insurer allows the inclusion of more than one individual per insured employee, where the maximum amount may vary between insurers.
In cases where the insured person chooses to indicate more people who will benefit from the indemnity, it is up to the individual to indicate the individual percentage that each one will be contemplated.
The law indicates that, in cases where the beneficiary is not indicated, half of the compensation will be paid to the spouse and the remainder to the legal heirs.
However, if the insured person has no children, the insurer must proceed with the payment for the ascending heirs:
- Country;
- Grandparents;
- Great grandparents.
What does corporate life insurance cover?
The basic coverage of corporate life insurance includes compensation for possible claims with the employee:
- Death : can be natural or by accident (work or personal – according to the type of policy), with the payment of compensation to the beneficiaries;
- Total or partial permanent disability : includes the total or partial functional loss of a limb or an organ, in cases of physical injury or personal accident;
- Occupational disability due to illness: refers to the total loss of the ability to work, with compensation being payable to the insured, provided that it is a proven disability;
- Funeral assistance : coverage for funeral expenses and other services needed by the deceased employee’s family.
In addition, it is possible to have additional coverage, if the policyholder has contracted it, which can be:
- Additional coverage for children and spouses;
- Indemnities in cases of contractual dismissals;
- Per diem due to temporary accidental disability;
- Basic basket;
- Credit life insurance;
- Birth aid.
What coverages are not included?
On the other hand, there are risks that are not covered by corporate life insurance, and if there is an incident that fits into one of the situations, there will be no indemnity payment.
Find out about the main exclusions below:
Abusive use of alcohol and drugs
In cases of incidents that are related to the abuse of alcohol and drugs, insurance companies do not offer coverage.
However, it is necessary that this coverage exclusion is described in detail in the contract, so that there are no doubts.
accidental death
In cases of accidental death, the insurer can open an investigation to understand under what circumstances the accident that led to the death of an employee occurred.
In some corporate life insurance contracts, compensation is paid only in scenarios where the accident is work-related.
However, coverage can also include different scenarios in which an accident may occur, without being directly related to work activities, such as a car accident, for example.
Suicide
With regard to suicide, art. 798 of the Civil Code provides that insurers are not required to pay compensation in cases of death or damage caused by the attempt.
However, the same article provides for a grace period of 24 months, from the time of contracting the insurance, until the premium can be claimed.
Natural disasters
There are insurance companies that do not have coverage for natural disasters, such as:
- Earthquake;
- Drilling;
- Tornado;
- Volcanic eruption, among others.
However, if there is any type of relationship with the company’s activity and the role of the employees, it is possible that there is coverage for such situations.
temporary disability
Finally, like accidental death, temporary disability must be analyzed by the insurer, since compensation is paid in cases where the work is unfeasible.
However, it should be noted that the payment will only be released after the insured person is discharged and with all medical treatments completed.
So that it is possible to attest the inability to perform labor activities.
How to proceed in the event of an accident?
A claim is the term used to define an event that is covered by corporate life insurance, such as the death of an employee.
Thus, the first step is for the policyholder to contact the insurer informing what happened and the measures being taken.
The company, in turn, will provide all the necessary guidance regarding the following procedures to activate the coverage.
In this case, the company may be asked for supporting documents of the incident, among other data that may be necessary for the analysis to be carried out.
In addition to the designation of a responsible analyst to monitor the entire occurrence, and provide the necessary assistance to the company, to the employee and family members.
Why buy corporate life insurance?
Corporate life insurance is recommended for companies of all segments and sizes.
Especially for those who understand how important it is to have additional security for unforeseen situations.
According to a survey published by Portal Catho , 30% of respondents consider the offer of corporate life insurance in the benefits package to be a differential.
In addition, there are other reasons for your company to hire corporate life insurance, among them we can mention:
- Increased productivity;
- More employee engagement;
- Enhancement of human capital;
- Competitive advantage;
- Safety.
Therefore, it is worth considering this service in a qualified company. Access our portal , make your quote and hire insurance for your employees today.
