What is Accidental Death Policy – Benefits, Types, Cover and Exclusions
Individuals can obtain accidental benefits from a standalone accident insurance policy or a rider plan. During the demise of a policyholder with an accidental death insurance policy, his/her beneficiary will receive these benefits. Furthermore, in case the insured dies of natural causes, an insurer will pay this benefit in addition to the standard benefit.
In this regard, one must possess a clear concept of the types of accidental death benefit plans, coverage, and exclusions to obtain accident insurance benefits.
What is an Accidental Death?
As per insurers, accidental death occurs as a result of accidents arising in the form of a car crash, choking, drowning, and more. As such accidents are hard to predict, one should add accidental death benefit riders to their policies or buy an accidental death policy to protect beneficiaries from financial losses.
Moreover, individuals working in or around potentially hazardous environments must mandatorily get this plan or add on this benefit over their regular insurance plan. However, this benefit comes at an additional price over an insurance premium amount. Then again, the benefit increases the pay-out.
Additionally, some accidental benefits offered by some policies include coverage for dismemberment, that is, total or partial loss of limbs, paralysis, burns, and the likes.
Types of Accidental Benefits Plans in India
Check out the benefit plans available for beneficiaries.
1. Group Life Supplement
A group insurance policy includes this benefit plan for beneficiaries. Here, the amount is usually similar to that of the group life benefit. Generally, employers of a company offer this policy.
2. Voluntary
This is an elective benefit offered to certain members of a group. An employer offers this insurance plan, for which an employee needs to pay premiums through their payroll. These employees get coverage for accidents that occur at the workplace and even when they are not at work.
3. Travel Accident
In this arrangement, insurers offer accidental benefits through an employee benefit plan. It provides supplemental protection against accidents to employees who are travelling due to company business. However, in this case, an employer pays the entire policy premium.
4. Dependents
Dependents in an accident insurance plan can rake in benefits under group accidental death benefit plans.
Accidental Insurance Coverage
Check out the coverage benefits policyholders can obtain by availing of an accidental insurance policy.
1. Accidental Death Cover
In case of an accident, dependent families are met with a financial loss that can affect their livelihood. However, with accidental insurance policies, beneficiaries or nominees are liable to receive the sum assured as per the policy document.
2. Total Disability Cover
If an accident results in total disability or permanent impairment such as loss of limbs, the policyholder will receive a certain portion of the sum insured.
3. Partial Disability Cover
An insured will receive a specific percentage of the sum insured in case of accidents resulting in permanent partial disability.
4. Temporary Total Disability
In the instance of accidents leading to temporary disability, policyholders may be unable to visit the office, which can affect their income. To repay the loss, insurers offer a weekly allowance that may also be utilised to pay EMIs.
Inclusions in a Personal Accident Insurance Plan
To avail of accidental benefits, policyholders must go through the following inclusions in accident insurance.
- Accidental dismemberment
- Medical expenses
- Accidental death
- Child education support
- Ambulance, burns, and broken bones
- Permanent total or partial disability
- Life support benefit
- Daily allowance
Exclusions under Personal Accident Insurance Plan
A personal accident insurance policy does not cover every medical expense. For that cause, one must know about the exclusions of such a plan. Take a look at them here:
- Childbirth or pregnancy
- Non-allopathic treatments
- Injuries from criminal acts or wars
- Mental disorders
- Accidents from adventurous, sports, naval, air force, military activities, etc.
- Natural death
- Suicide or self-injuries
- Injuries or death under the influence of intoxicants
- Pre-existing disability or injury
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Also Read
Benefits of Personal Accident Insurance Policy
Apart from getting accidental benefits, an accident insurance plan comes with a number of advantages. They are as follows:
- Sizeable coverage at a lower premium
- Both individual and family insurance plans are available
- Simplified claim process
- Family security
- Paperless procedure
- No requirement for medical tests
- Coverage for legal and funeral expenses
- Customisable plans are available
- Child education benefit
- Worldwide coverage
- 24/7 support service
- Double indemnity is available in the event of demise or impairment while travelling in public transport.
Final Word
Therefore, it is evident that accidental death insurance plans safeguard a policyholder and his/her family against financial losses that may occur due to unfortunate incidents.
Obtaining an insurance policy will enable a policyholder’s beneficiary to claim accidental benefits in his/her absence. One can either add certain benefit plans to their existing policies or choose a standalone accident insurance plan to obtain these benefits.
FAQs
Ans: The premium of an accidental insurance policy varies with respect to the plan you choose. However, the amount depends on certain parameters such as age, occupation, and medical history in some cases.
Ans: To raise a claim against your accident insurance policy, you need to contact your insurance provider and submit the following information:
• Contact number
• Policy number
• Date and time of the accident
• Incident’s location
• The extent of the loss
• Personal details of the insured person who is injured
• Description of the accident with proper details
Ans: The following documents must be submitted to claim accidental benefits –
• Death certificate
• FIR report
• Post-mortem report
• Medical certificate
• Medicine bills
Ans: Under Section 80D of the Income Tax Act, there are no tax benefits on a personal accident plan.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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