What is an accident insurance?

Insurance against loss by accidental bodily injury to the insured.
In India, Personal accident (individual/group), Janata personal accident and Gramin personal accident policies are available for accidental risks. Certain other policies like Motor vehicle policy, Videsh Yatra policy grant an add-on cover against personal accidents. There are other accident policies for specified groups like students - Shishu Suraksha Policy,  Bhagyashree for girl-children,  Raj Rajeshwari for women and NRI Personal Accident policy for NRIs, etc.

Accident benefit will be available under the plan upto a maximum of Rs.25 lakhs (inclusive of all other life insurance plan) subject to payment of additional premium. An additional amount equal to the accident benefit sum assured is payable on death. In case of total and permanent disability arising due to accident (within 180 days) this amount is paid over a period of 10 years in monthly installment.

The disability due to accident should be total and such that person is unable to carry out any work to earn the living. Following disabilities due to accident are covered
a) Irrevocable loss of entire sight of the both eyes or
b) amputation of both hand at or above the wrists or
c) amputation of both feet at or above ankles or
d) amputation of one hand at or above the wrist and one foot at or above the ankle.

No benefit will be paid in case of accidental death or disability due to accident in case of
a) Intentional self-injury, attempted suicide, insanity, or immorality or the life assured is under the influence of intoxicating liquor, drugs or narcotics
b) Engagement in aviation or aeronautics other than that of a passenger in any aircraft
c) Injuries resulting from riots, civil commotion, rebellion, war, invasion, hunting, mountaineering, steeple chasing or racing of any kind
d) Accident resulted from committing any breach of law
e) Accident arising from employment in armed forces or military services or police organisation.

Age Proof:
Only standard age proof will be accepted under this plan.

Exclusion:
Suicide: This policy shall be void if the Life Assured commits suicide at anytime on or after the date on which the risk on the policy has commenced but before the expiry of one year from the date of the policy. In case of death due to suicide during this period, the Corporation will not entertain any claim by virtue of this policy except to the extent of a third party’s bonafide beneficial interest acquired in the policy for valuable consideration of which notice has been given in writing to the office to which premiums under this policy were paid, at least one calendar month prior to death.

Here are a few tips to keep in mind about your disability insurance purchase:
  • Take your time. On the other hand, don’t put off an important decision that would provide protection for your family. Make sure you fully understand any policy you are considering and that you are comfortable with the company, agent, and product.
  • When you purchase a policy, make your check payable to the insurance company, not to the agent. Be sure to get a receipt.
  • After you have purchased an insurance policy, keep in mind that you may have a free-look period, usually 10 days after you receive the policy, during which you can change your mind. During that period, read your policy carefully. If you decide not to keep it, the company will cancel the policy and give you an appropriate refund.
  • Review the copy of your application contained in your policy.  Promptly notify your agent or company of any errors or missing information.
  • If an agent or company contacts you and wants you to cancel your current policy to buy a new one, contact your original agent or company before making a decision. Surrendering your policy to buy another could be very costly.
  • If you have a complaint about your insurance agent or company, contact the customer service division of your insurance company. If you are still dissatisfied, contact your state’s or province’s insurance department. Most departments have a consumer affairs division that can offer help, and some have a toll-free number to respond to consumer requests.
  • Review your policy periodically or when your situation changes to be sure your coverage is adequate.
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