Standard personal accident insurance cover from April 1

The Insurance Regulatory and Development Authority of India (IRDAI) has mandated general and health insurers to offer Standard Personal Accident Insurance product from April 1.

It said this issuing guidelines for the standard product, whose basic mandatory cover features and policy wordings will be uniform. However, the cost of the Saral Suraksha Bima, as the cover will be known, is likely to vary with the regulator allowing insurers to determine premium.

The minimum sum insured under the standard policy will be ₹2.5 lakh and maximum ₹1 crore. The tenure will be one year and the policy can be renewed. It is for those aged between 18-70 years and can be offered as a family cover too.

Guidelines issued

According to the guidelines, under the base cover benefit equal to 100% of sum insured will be payable on death of the insured person, due to an injury sustained in an accident during the policy period. Similarly, 100% sum insured will have to be paid if the insured person suffers Permanent Total Disablement, “solely and directly due to an accident during the policy period.” The permanent total disablement clause will apply to a number of conditions, including loss of sight or injury that disabled the insured person from engaging in any employment or occupation.

Policy coverage

Permanent Partial Disablement, as a result of accident during the policy period, is also to be covered under the policy, the guidelines said specifying the portion of sum insured that has to be paid in such cases.

IRDAI has permitted insurers to offer optional covers, along with the standard product, including those under which compensation for the period of temporary total disablement will be provided; hospitalisation expenses arising due to accident will be covered; and a one-time educational grant of 10% of the base sum insured paid, per child, in the event of death or permanent total disability of the insured person.

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Printable version | Apr 20, 2021 4:30:41 AM | https://www.thehindu.com/news/cities/Hyderabad/standard-personal-accident-insurance-cover-from-april-1/article33936041.ece

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