Differences between GPA and GMC Insurance Policy | Know Features, Benefits etc.


6 min read

What is GPA Insurance Policy?

The GPA full form is group personal accident and is a sort of group insurance policy. These policies offer you financial support from circumstances that are unforeseen and – thus – unexpected. The most prominent example of such a situation would be an accident, which could lead to a fatal injury at worst and disability as well. However, there is no provision for customization in these policies. This means that even if you – an employee who is being covered by the policy – need some special features as part of the coverage you would not get them from such a policy.

We can also assume that if you know the GPA full form in insurance you would also be aware of the fact that these policies have certain in-built services and features which are applicable to everyone. In this case, it does not matter what their personal needs are because most likely they would be covered. The premiums in these policies are lower than what you would have to pay if you sought standalone coverage for personal accidents. There are two main ways in which the premiums for these policies are paid – they are either deducted from your salaries or the employer pays the money themselves.

Features of GPA Insurance Plan

A GPA insurance policy offers coverage even when you are outside the country or not on duty as such. Following are some of the noteworthy features of these policies:

  • accidental death coverage
  • education funds for the dependent children of the employees – this feature would be extended to a maximum of two children
  • coverage for total, permanent, or partial disability
  • transportation cover and ambulance charges
  • disablement coverage for loss of arms and legs, and depreciation of body parts

Some insurers that offer these policies also have provisions for add-on coverage. However, for that, you have to pay some extra premium.

In these GPA insurance policies, you can get personal accident coverage to a maximum limit of 40% along with 500 rupees as a daily allowance. This facility would be extended for 30 days at the most and can be only availed when you are hospitalized.

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What is GMC insurance?

GMC stands for Group Medical Cover. This is a health insurance policy that can be customized and can be bought by a group of people who have a similar interest. So, as you would have guessed by now, any corporation or organization can customize these policies to suit the requirements that they have in this context.

The risk cover in these policies happens to be distributed among many people. This is something that you need to know about these policies apart from the GMC full form. It is this saturation that makes sure that you have to pay such a low premium in these policies compared to the individual health plans. In certain cases, the entire expense of the policy could be borne by your employer. In other cases, they may deduct it from your salary and deposit it in the policy.

Apart from knowing GMC full form in insurance, you should also know that these policies are dependent on several factors as well. This includes factors such as demographic components and the size of the group that is availing of the policy. When it comes to demographic components the most critical factors are income, occupation, and age of the employees who are being covered by the policy. These insurance policies also have riders.

Features of GMC Insurance Plan

Following are the most important features of these policies:

  • hospitalization coverage
  • coverage for infant and maternity health
  • coverage for pre and post-hospitalization
  • coverage for costs incurred in daycare procedures
  • coverage for OPD (outpatient department) expenses

So, as you can see for yourself, the GMC India policies are great indeed.

The difference between Group Personal Accident policy and Group Medical Cover Policy

The GMC India policies are also known by other names such as corporate insurance, employer-offered insurance, and employer-employee insurance while the GPA policies are also referred to as personal accident cover for employees as well as 24-hour worldwide accident policy. In terms of scope, the GMC policies are connected to medical emergencies and issues that you may face while you are covered by the policy. This is why these policies provide coverage for post and pre-hospitalization costs as well as daycare treatments.

As opposed to the GMC India policies, the GPA policies deal with the accidents that you may face while you are covered by the same. Now, depending on the terms and conditions of coverage it would be decided if you are covered by the policy while you are off duty. The GMC policies normally offer indemnity coverage while the GPA policies provide you with benefit-based coverage. The GMC policies may in some cases cover your dependent family members but no such facility is available in the GPA policies. As we have said already, GMC policies can be customized while the GPA policies do not have any such flexibility.


What we have said over here are basically descriptions of these policies along with the advantages that they have for the insured. We can hope that once you read about these you would no longer have any doubts about these two kinds of group health insurance plans. As you would have seen so far, these policies do have some minor differences. Despite that, so many groups and organizations in India go for these policies and this is purely for the benefit that these policies provide.

Apart from that, both GMC and GPA insurance policies come with several exclusions that you need to know about in this regard. These mostly have to do with the cause of your death. For example, if you die because of a sexually transmitted disease these policies would not cover you. The same is also applicable if you die while taking part in criminal activity. In these cases, you always have the choice of selecting a different health insurance plan for your family members as well as yourself. You can do it as per the money that you can spend in this context and the overall health condition of the different members of your family.

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FAQs on GMC and GPA

What is GMC and GPA policy?

There are different insurance policies under which the employers cover their employees, and the two most popular ones are – Group Medical Coverage (GMC) and Group Personal Accident Policy (GPA).

What is the difference between GMC and GPA?

GMC policies are indemnity-based plans. This implies that the policy will pay out the amount equivalent to the exact expenses incurred by the employee, subject to the sum assured limits. GPA insurance is fixed-benefit. That means the policy pays out a lump sum amount as determined under the policy wordings.

Is GPA policy mandatory in India?

No, it is not mandatory to insure employees under a GPA.

What are the benefits of a GMC policy?

Hospitalization Expenses.
Pre and Post Hospitalization Expenses.
Reimbursement of out-patient expenses.
Maternity care and infant health coverage.
Family Floater Cover.
Day Care Procedures.
Cashless Hospitalisation and more.

Other Health Insurance Products

Feb 20, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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