Personal Accident Insurance by savi

8/7/2019 Personal Accident Insurance by savi

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Presented by:-

Savita SharmaBBA(B&I)


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` A policy that will pay out an income or a lump sum in the event of

disability, dismemberment or death, caused by an accident.

` Personal Accident Insurance is not Life Assurance.

` Insurance against bodily injury or death because of accident.

` The minimum entry age is 18 years and the maximum entry age is 70 years

(age as on last birthday).

` The applicant can buy the policy for his spouse aged between 18-70 years .


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` Just like today, in early times if a man couldn't work because of an

accident, his family would suffer.

` In 1694, Hugh the Elder Chamberlain proposed a policy to cover a family

income in the event of an accident, and, late in the 1800s, it became a

reality.

` Even though they called it accident insurance, it resembles today's

disability income, providing payments to the injured person.

` In 1850, the Franklin Health Assurance Company of Massachusetts offered

the first policy that covered injury from a train or steamboat accident.


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1. 'BODILY INJURY' means identifiable physical injury

which

(a) is caused by an Accident, and

(b) solely and independently of any other cause, except sickness or disease

directly resulting from, or medical or surgical treatment rendered necessary

by such injury, occasions the death or disablement of the Insured person

within twelve months from the date of the Accident.


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2. 'ACCIDENT' means a sudden, unexpected, unusual, specific event

which occurs at an identifiable time and place during the Period of

Insurance.

Accident shall also include

(a) exposure resulting from a mishap to a conveyance in which the Insured

Person is travelling;


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(b) disappearance. If the Insured Person is not found within twelve months of

disappearing, and sufficient evidence is produced satisfactory to the

Underwriters that leads them inevitably to the conclusion that the Insured

Person has sustained Bodily Injury and that such injury has caused the

Insured Persons death, the Underwriters shall forthwith pay any death

benefit, where applicable, under this Insurance, provided that the person or

persons to whom such sum is paid shall sign an undertaking to refund such

sum to the Underwriters if the Insured Person is subsequently found to be

living.


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3. 'TEMPORARY TOTAL DISABLEMENT' means disablement which

entirely prevents the Insured Person from attending to their business or

occupation.

4 'TEMPORARY PARTIAL DISABLEMENT' means disablement which

prevents the Insured Person from attending to a substantial part of their

business or occupation.


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5 'PERMANENT TOTAL DISABLEMENT' means disablement which

entirely prevents the Insured Person from attending to any business or

occupation for which they are reasonably suited by training, education or

experience and which lasts twelve months and at the end of that period is

beyond hope of improvement.

6. 'LOSS OF A LIMB' means permanent loss by physical separation of a

hand at or above the wrist or of a foot at or above the ankle and includes

permanent total and irrecoverable loss of use of hand, arm or leg.


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` All personal accident insurance policies differ.

` Normally a life insurance company will cover you for any bodily injury

sustained solely and directly by an accident.

` The injuries need to be external and visible and independent of any other

cause.

` This means that you are generally covered for general accidents that may

cause you to suffer an injury which prevents you from working.

` This injury needs to have occurred within the last 60 days from the time

that you ceased work.


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Under personal accident insurance, the policyholder, if injured, receives

cash benefits every month, just like income, for as long as s/he is unable to

work due to the accidental injuries. This income is non-taxable and does

not exceed the policyholders after-tax earnings minus the state benefits

s/he can claim. In case of death of the policyholder due to an accident, the

family receives a specific lump-sum amount.

There are eight common types of personal accident insurance policies:


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` Group: This policy is used by companies to cover employees for

expenses related to accidents.

` Self-employed: Since self employed individuals are not eligible for

employee benefits, they are worse off when injured in an accident.

` Team: Through a team accident insurance policy, organizers can

seek cover for all the members of a sports team.


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` Professional: This policy is specifically for self employed

professionals, such as a sportsperson, actor, lawyer or doctor, who

have special requirements.

` Over 50: This policy targets people over 50 years of age, as

accidents can cause more grievous injuries to them.

` Travel accidents: This policy offers benefits in case the

policyholder meets with an accident while traveling.


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` Children: The purpose of this policy is to provide financial help to parents

if they are unable to work or if they incur expenses as a result of an

accident.

` Individual: This policy can be taken by any individual. The benefits

usually enclose partners and children. Since several activities are excluded

from this policy, it is not as useful for people who love adventurous sports,

like mountaineering and rock climbing.


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This Insurance does not cover death or disablement in any way caused or

contributed to by

` war, whether war be declared or not, hostilities or any act of war or civil

war;

` radioactive contamination;

` the Insured Person engaging in or taking part in armed forces service or

operations;

` the Insured Person engaging in flying of any kind other than as a

passenger;

` the Insured Persons suicide or attempted suicide or intentional self-injury

or the Insured Person being in a state of insanity;


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` Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex

(ARC) or Human Immune- deficiency Virus (HIV) howsoever these have

been acquired or may be named;

` the Insured Persons deliberate exposure to exceptional danger (except in

an attempt to save human life);

` the Insured Persons own criminal act;

` the Insured Person being under the influence of alcohol or drugs.

` Dental injuries are sometimes excluded in policies.` All illnesses are excluded.


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` A great benefit of personal accident insurance is that the premiums are

fully tax deductible.

` Personal accident insurance will cover one for up to 75% of ones income

and one have the choice of either two or five years benefit periods or until

one reach the age of 65.

` This is a good policy to have as one are secure in the knowledge that in the

event of an accident that should keep one off work for a long period of

time, one have a policy that will cover you.


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Documents

Personal Accident Insurance by savi