FAQs on Individual Personal Accident Policies (Accidental Death & Disablement only)
Questions about Personal Accident Insurance? Get your answers here!
What is an Individual Personal Accident Policy?
An insurance policy which, in return for regular premiums, pays a specific sum in the event of death, loss of sight or limbs or other permanent disablement due to an accident. This policy is not an indemnity policy, but a benefit policy. This implies that the promised sum insured will be paid in full in the event of the occurrence of the peril.
How is accident defined?
Accident means any sudden, unintended and fortuitous external and visible event, which might cause bodily injury or which leads to a physical disability or death.
Why do I need an accident policy?
Accidents don’t come scheduled. They happen anytime and anywhere. The personal accident policy
cover a number of eventualities, including train and road accidents, plane crashes, and even a slip in the bathroom. In the event of happening the policy compensates to meet the expenses incurred during this period subject to maximum of sum insured.
What is the basis of determining the sum insured?
Occupation nature, income level and age are the main factors which play a vital role in determining the sum insured. The sum insured offered is generally the certain times of the annual income.
Can I cover my children and parents under personal accident policy?
Yes, Children are eligible for cover of 25% of Sum Insured opted by the proposer & Parents cannot be covered under the policy.
I have a health policy. Do I still need an accident policy?
Yes definitely, A personal accident insurance
policy is an insurance contract that covers risk arising from accidents be it at home, or outside. An accident insurance policy compensates you with a lumpsum amount at the time of need to provide financial support during crisis arisen due to death/disablement of the insured.
My spouse is a housewife .Can she be covered under personal accident policy?
Accidents can happen anywhere and at home too, hence she is eligible for cover of 50% of sum insured opted by the proposer.
Do I need to buy individual policy for each of my family member or will one policy cover my entire family?
Family Package cover is available to Individuals under Personal Accident Policy
whereby the proposer, spouse and dependent children can be covered under a single policy.
Is there any additional benefits from this policy?
This policy offers compensation in case of death or bodily injury to the insured person, directly and solely as a result of an accident, by external, visible and violent means. This personal accident insurance policy would compensate the insured person for loss of income in case of temporary or permanent disablement either of partial or total damage.
The sum insured will increase by 5% every year and not exceed beyond 25% at the time of renewal for every claim free year.
Can I nominate my child a minor to receive the benefit in case of any happening of the event?
Yes, in such case guardian of the nominee has to be provided.
Who determines the percentage of compensation in case of partial loss?
The amount of compensation for a partial loss depends on the extent of loss and it is clearly specified under the policy terms and conditions.
Is there any additional benefits provided by the policy?
An Educational Grant of Rs 10000 under the entire policy period is paid in case of death or permanent disablement either of the covered parents.
In the event of death of the insured due to an accident outside the residence, the insurance company will bear for the transportation of the mortal remains upto Rs 5000
Is there any income tax benefit for premium paid under Personal Accident insurance?
Is there any specific type of accidents which are excluded from purview of cover?
The following type of accidents are generally not covered
The above list is not exhaustive. Please refer to the policy wordings for complete list of Exclusions.
From intentional self-injury, suicide or attempted suicide
Whilst under the influence of intoxicating liquor or drugs
Whilst engaging in sporting activities (aviation or ballooning for example)
Directly or indirectly caused by venereal disease or insanity
Childbirth or pregnancy related
War, invasion, act of foreign enemy, hostilities, civil war and many more