Personal Accident Insurance Policy - Scope Of Cover - General Insurance

The Personal Accident Insurance Policy in General Insurance is to induce a sense of security amongst them, and this policy covers the risk of accidental death and/or permanent or partial disablement of insured person.

The policy provides compensation to the insured got injuries directly from an accident caused by violence, visible and external resulting into death, permanent total disablement, permanent partial disablement or temporary total disablement.

Sum Insured

Personal Accident Insurance Policy in General Insurance covers in world wide and it give coverage starts from 5 lacks to 50 lacks. The free looks up period is 15 days and 5% bonus to claim free year which is maximum 50%.  The family discount is allowed 10% and no health check up required for policy issuance.

The total sum insured should not exceed 72 times the monthly income of insured from direct employment of the insured. The sum insured will be equivalent to 50% of the insured or Rs. 3lacks whichever is less.  In case of children 25% of the capital sum insured should be offered.

Cumulative Bonus:   

Benefits under Personal Accident Insurance Policy in General Insurance will earn cumulative bonus is 5% percent but not exceeding  the 50% of the capital sum insured.  The earned cumulative bonus will be lost if the the policy is renewed after 30 days from the date of expiry.

Family Discount

The sum insured opts to cover his/her husband/wife/dependent parents/dependents children under the policy is 5% discount is allowed on the total premium.

Age limit
The personal accident insurance cover is restricted to persons between the ages of 5 to 70 years for both male and female.  Cover beyond these age limits can be had at a higher rates of premium as below

• The persons above 70-75 years can be covered  by charging a loading of 10%.
• The persons above 75-80years can be covered by charging a loading of 20%.
• The age of above 80 years can be coverage depends  on insurance comapanies internal decision.

In Personal Accident Insurance Policy in General Insurance, the risk is classified  into three groups. This groups are divided about their occupation. These are given below

1. Normal Risk: Persons working as Doctors, Accountants, Architects, Engineers, Teachers, Bankers,  engaged in administrative work, shopkeepers, shops which are not used machinery and similar this type of occupations.
2. Medium Risk:Persons working as  Builders, contractors, engineers engaged in superintending construction functions only, veterinary doctors and drivers to private motor cars and light motor vehicle and persons similar this type of occupations.
3. Heavy Risk: Persons working in under ground mines, explosives, magazines, workers involved in electrical installation with high tension supply, jockeys.  Circus person, person engaged in activities like racing on wheels or horse back, big game hunting, mountaineering, winter sports, skying, ice skating, Ballooning, hang gliding, River rafting, polo rafting, polo playing like this type of similar hazards.