Future! Personal accident insurance policy with coverage up to Rs 1 crore


The minimum sum insured is Rs. 2.5 lakh and the maximum sum insured will be Rs. 1 Crore.

In order to have a standard product with coverage and policy terms common to the entire industry, IRDAI decided to mandate all general and health insurers to offer an individual accident insurance product. The product will have basic mandatory coverage while insurers will also be allowed to add optional coverage. Pricing in terms of premium is therefore left to the discretion of insurers. General insurers and health insurers will offer this product from April 1, 2021.

The insurance market offers a wide variety of individual accident insurance products. Each product has unique characteristics and the insurance public may find it difficult to choose an appropriate product. In the future, it will be relatively easier to choose the individual accident insurance product. Each general and independent insurer, who has received a certificate of registration to carry out general insurance and / or health insurance transactions, must offer this product.

Such a policy will cover death, total permanent disability and partial permanent disability as basic coverage. In the context of Total Permanent Disability, a benefit equal to 100% of the Sum Insured is payable if an Insured Person suffers from Total Permanent Disability only and directly due to an Accident during the Insurance Period.

Temporary total disability, hospital costs due to an accident, scholarship are some of the optimal coverages an insurer can add to the policy.

The basic cover of the Standard PA product and the optional cover “Temporary total disability allowance” and “Education allowance” will be offered on the basis of a benefit. The optional “Hospitalization costs following an Accident” cover is offered as compensation.

The minimum sum insured is Rs. 2.5 lakhs and the maximum sum insured will be Rs. 1 Crore. Beyond the range specified above, insurers can propose themselves and can use the same name for the product if all conditions remain the same. The minimum entry age is 18 and the maximum entry age is at least 70 for covered persons.

The product will have a Cumulative Bonus (CB) provision. The Insured capital (excluding BC) will be increased by 5% for each insurance year without loss, provided that the contract is renewed without interruption within the limit of 50% of the insured capital. If a claim is made in a given year, the cumulative bonus accumulated may be reduced to the same rate at which it was accumulated.

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