Group Certificate

Definition - What does Group Certificate mean?

A group certificate is a document provided to all members of a group plan that shows the benefits provided under the insurance contract. It is issued by the insurance company to certify that the insurance policy has been bought for a specified group of people. This document is merely a small paper naming the insured members and the type of policy as well as the limits of their insurance. It also identifies exclusions, but it never provides all the contract terms.

Insuranceopedia explains Group Certificate

A group certificate is issued only as a matter of information and does not amend or alter the coverage of the policies of the group insurance. To be given a group certificate, it is crucial that you are a member of a group insurance policy. It contains information as to the group policy number, name of the policyholder, type of coverage, and group policy effectivity date.

It is an important document as it proves that the insured is a member of the group insurance policy. Rather than carry the actual policy, the group insurance is more practical and more efficient. As a piece of document, it shows that somewhere in the insurance company, there is a group insurance policy that covers the losses of the members.

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