Aviva has made several enhancements to its group income protection and group life products.

With immediate effect, it has increased the free cover limit formula on its existing and new group life policies from £15,000 to £20,000 multiplied by the number of lives in a scheme, subject to a maximum of £1.25 million.

Aviva has also increased the maximum free cover limit from £1.25m to £1.5m for schemes covering 500-2,999 lives, and to £1.75m for those covering 3,000 lives or more. The increased limits are applicable for all new business and renewals from 1 January 2010.

Aviva has also introduced a lump sum option to its group income protection scheme.This will enable employers to choose a two, three, four or fine-year limited term policy followed by a lump sum payment of one, two, three, four or five-times salary, or up to nine times the annual income benefit (up to £1m per employee covered).

In addition, a pay direct option has been added to the scheme, which enables employers to choose for group income protection benefits to be paid direct to an employee in the event they are unable to return to work as a result of long-term illness and are removed from the payroll.

This means there is no obligation for the employer to keep an employee on their payroll in order to receive benefits.

Steve Bridger, head of group risk at Aviva UK Health, said: "With the workplace changing at an ever-increasing pace, we are committed to ensuring that we offer our customers products that respond to their changing needs, both in terms of financial protection and employee rehabilitation."

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