18.12.2023 | News, SAVALnews
Group life insurance is mandatory for the employer if such is required in the collective agreement binding the employer or in the national general collective agreement valid in the employer's sector. The insurance is a deductible benefit for the employer.
Employees’ Group Life Assurance is a life insurance policy taken out by an employer for its employees. A death benefit will be paid in the event of an employee's death, provided there are beneficiaries as referred to in the insurance terms and conditions.
Any compensations that are based on the employees’ group life insurance policy are processed and paid centrally from the Finnish Workers’ Compensation Center (TVK) claims service. The most essential tasks of TVK are to support the work and unified practices of insurance companies as well as to coordinate the execution of workers’ compensation insurance.
The Director of Claims and Supervision at the Finnish Workers’ Compensation Center, Heli Lagerblom, explains that employees’ group life assurance has been a part of the Finnish Workers’ Compensation Center from the year 2015. The name was first changed to Federation of Accident Insurance Institutions and, from the beginning of 2016, to the Finnish Workers’ Compensation Center (TVK). Today, the duties of the Finnish Workers’ Compensation Center are largely the same as one hundred years ago when the organisation was founded.
Lagerblom had a look into the insurance industry already when she was studying. After graduating, she was employed by the Finnish Workers’ Compensation Center and has been working with compensation issues for over 16 years now. Starting from 2015, Lagerblom was responsible for compensation issues in the position of a Compensations Manager and, from 2020 onwards, she has been the unit head responsible for Claims and Supervision.
Lagerblom points out that employees’ group life assurance is a part of social security. If an employer has not taken out such insurance, the claimant can claim compensation directly from the employer. It is, however, rare that employers do not take this type of insurance.
Persons insured include employees whose employment relationship meets the conditions specified in the insurance terms and conditions, for instance, that the employment relationship of the insured person has lasted for a minimum of one full month.
The insurance is valid during the employee's work and leisure time. Employees continue to be covered by the insurance until three years after the end of their employment relationship has ended.
‛However, this “continued coverage” does not apply to old-age pensioners or employees who are over the age of 68’, Lagerblom clarifies.
A lump-sum compensation is paid on the basis of the insurance in the event of a death of an employee covered by the employer’s policy. The beneficiaries are the deceased person’s spouse and children under the 22 years of age. Compensation is not paid to, for example, the estate of the deceased person.
‛The group life assurance consists of two separate compensation parts: the spouse’s benefit and child's benefit. An accident supplement of 50% will be added if the death was accidental. Furthermore, age impacts the spouse's benefit. If the insured person is aged 60 years or older, the amount to be compensated is EUR 4,800. If the insured person is under the age of 49, the amount to be compensated is EUR 17,700. The child's benefit is EUR 7,700’, Lagerblom explains.
The terms of the employees’ group life assurance were changed in the beginning of 2020. A beneficiary is a spouse with whom the insured has permanently cohabited without interruption at least for five years.
Any compensations that are based on the employees’ group life assurance are processed and paid centrally from the Finnish Workers’ Compensation Center claims service.
Each beneficiary/claimant shall file a separate claim application. The claim application can be filed either electronically on the Employee’s Group Life Assurance website www.tvk.fi/en/trhv or by filling in a claims form, also found on the website. If necessary, the claims service provides help with filling in the claim application, tel. +358 (0)409 222 900 or by email trhv@tvk.fi.
In 2021, a total of 3,000 applications related to group life assurance were submitted for processing. Usually, the number of applications submitted for processing is 300–500 less. On an annual basis, the amount of compensation in total has been approximately EUR 23 million.
‛Our compensation service is rapid. Over 90 per cent of the claim applications are processed within two weeks’, Lagerblom points out.
Lagerblom emphasises that the employees’ group life assurance has originally been created to provide families with rapid help. Its purpose is to secure the immediate livelihood of the deceased employee’s family. The insurance covers all causes of death, including accidents and those caused by an illness.
‛Other possible insurance compensations do not affect the payment of compensations under the employees’ group life assurance.’
The article has been published on ASIA member magazine issue 4/2023. Text Heidi Salonen and pictures Sanna Sinkkilä/ TVK, Adobe Stock
Insurance benefits for members