GPA Sum Insured: the CTC multiple, explained
In group personal accident (GPA) cover, the sum insured is the maximum amount payable for a covered employee — and it is almost always set as a multiple of annual CTC, commonly 5× to 20×. Every accident benefit, from death to disability, is then paid as a percentage of that single figure.
Key takeaway
One sum insured per employee sets the ceiling for every accident benefit. Pick the CTC multiple that keeps the payout proportionate to each person’s income — 10× is a common default.
How the CTC multiple is set
When an employer buys GPA, they choose a rule for the sum insured rather than a fixed rupee value for each person. The most common rule is a multiple of annual CTC — say 10× — applied uniformly, so an employee earning ₹8,00,000 a year carries ₹80,00,000 of accident cover and a colleague on ₹4,00,000 carries ₹40,00,000. The cover scales with income automatically, and it updates as salaries change at renewal.
Employers can also band the multiple by grade — for example leadership at 20×, managers at 15×, and all other staff at 10× — or set a single flat sum insured for the whole team where they want simplicity. Field, logistics and on-site teams that carry more accident risk are often given a higher multiple than desk-based roles.
Whichever route you pick, there is only one sum insured per employee. The accidental death benefit and disability benefits all draw against it as a percentage, which is why the multiple you choose matters for the whole policy, not just the death claim.
A worked example
Suppose an employer sets GPA at 10× CTC. An employee earns an annual CTC of ₹8,00,000, giving a sum insured of ₹80,00,000. Here is how that single figure flows into each benefit:
| Sum insured (10× ₹8,00,000 CTC) | ₹80,00,000 |
| Accidental death — 100% of SI | ₹80,00,000 |
| Permanent total disability — 100% of SI | ₹80,00,000 |
| Permanent partial disability — 100% of SI | ₹80,00,000 |
| Temporary total disablement — 1% of SI, capped at ₹5,000/week (up to 52 weeks) | ₹5,000 / week |
The ₹80,00,000 sum insured is the ceiling for the policy year. A full accidental death, permanent total disability or permanent partial disability pays the whole amount; and a temporary inability to work pays a small weekly benefit, capped each week and in total. Figures shown are typical market terms — the exact amounts are set by the policy wording.
Why it matters for employers
The CTC multiple is the single lever that decides both the value your team feels and the premium you pay. Set it too low and a family that loses its earner is left with a payout that runs out in a year or two; set it far above what your team’s income and risk profile need, and you overspend. Because GPA premiums are low relative to the sum insured, most employers can afford a meaningful multiple — 10× is a sensible starting point for mixed teams.
A practical approach is to give higher multiples to field, travel-heavy and on-site roles that run more accident risk, keep a solid baseline for everyone else, and read the sum insured alongside the weekly disablement and medical-expense sub-limits so the headline number is genuinely usable.
How Onsurity handles it
Onsurity lets employers set the GPA sum insured as a CTC multiple — uniform or banded by grade — with no individual medical underwriting, so cover is issued on a group basis from day one. New joiners are added mid-cycle from their date of joining at the sum insured for their grade, on a proportionate premium.
The TeamSure dashboard shows each member’s sum insured and grade alongside onboarding, renewals and billing, so HR can manage cover without spreadsheets. When an accident claim arises, Onsurity’s claims team guides the employee or their family through documentation and settlement — the sum insured is only useful if the claim actually gets paid, and that is where the support matters most.
Related terms
- Accidental death benefit
The core GPA payout — 100% of the sum insured to the nominee.
- Permanent vs temporary disablement
How disability claims draw a percentage of the same sum insured.
- Weekly disablement benefit
The temporary-disability payout, set at a small percentage of the sum insured each week.
- Group Personal Accident cover
How Onsurity structures GPA for Indian teams.
Frequently asked questions
Why is GPA sum insured set as a multiple of salary rather than a flat amount?
Because a personal accident benefit is meant to replace lost earnings and support a family if an employee is killed or disabled. Tying the sum insured to annual CTC keeps the payout proportionate to what each person actually earns — a senior employee’s family loses a larger income, so their cover is larger. Employers can also choose a flat sum insured for everyone if they prefer a simpler, uniform structure.
What multiple of CTC is common for GPA?
Most Indian group personal accident schemes set the sum insured between 5× and 20× of annual CTC. A common default is 10× CTC for all employees, with senior grades at 15×–20×. The right multiple depends on your team’s roles, travel and on-site exposure, and your budget — the premium rises with the sum insured, but GPA is inexpensive relative to the cover it buys.
Does the same sum insured apply to death and to disability?
Yes — there is a single sum insured per employee, and each benefit is expressed as a percentage of it. Accidental death, permanent total disability and permanent partial disability each pay 100% of the sum insured, and temporary total disablement pays a small, capped weekly benefit. So the CTC multiple you choose sets the ceiling for every accident benefit at once.
Can we set different sum insured levels for different grades?
Yes. GPA supports grade-based structures — for example leadership at 20× CTC, managers at 15×, and all other staff at 10×. This lets you match cover to income without buying the same high sum insured for everyone. Onsurity helps design a banded structure that fits your headcount and budget.
Is there medical underwriting to fix the GPA sum insured?
No. Group personal accident cover is issued on a group basis with no individual health declarations or medical tests, so the sum insured is set purely by your chosen CTC multiple and grade structure — not by any employee’s health. New joiners are covered from their date of addition at the sum insured for their grade.
Set the right accident cover for your team
Get a quote and we’ll help you choose a GPA sum insured — a CTC multiple or a banded structure — that protects your people without overspending.
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