Group protection scheme
A scheme taken out by an employer or an industry for its employees, covering death, incapacity and disability without individual underwriting.
Nobody chooses to join a group protection scheme, and everything else follows from that. Taken out by an employer or negotiated at industry level for a group of employees defined by an objective category, the contract rests on compulsory membership. The insured population therefore mirrors the workforce, sick and healthy alike; antiselection disappears, and the insurer can drop individual medical underwriting. The contract covers death, temporary incapacity and disability, sometimes long-term care, whereas supplementary health cover reimburses care. On their own, employees would pay for medical underwriting, individual rating and acquisition costs out of all proportion to the contribution negotiated for ten thousand people. France's Évin Act of December 31, 1989 protects an employee already off work, who keeps their benefits when the employer changes provider, and regulates cancellation. The weak point is the employment link, since cover ends with the employment contract; portability and individual continuation soften this without removing it.
France's Évin Act of December 31, 1989 requires benefits to be maintained for claimants already off work when the provider changes, and regulates cancellation. The Constitutional Council, in its decision of June 13, 2013, struck down the designation clauses that imposed a single insurer on a whole industry. That ruling opened the way to mere recommendation and to competition among industry schemes.
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