Page 309 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Additional Benefits

1. Income tax benefits under section 80-D are available.
2. Family discount.

Exhibit 14.2: List of Diseases Covered Under Long Term Comprehensive Plan

List of Diseases covered under long term
comprehensive plan

1. Cerebral or vascular stroke
2. Open and close heart surgery
3. Tuberculosis, which includes pulmonary T.B.
4. Encephalties (viral)
5. Neurosurgery
6. Total replacement of joints
7. Malignant diseases
8. Nephritis of any antilogy plus bacterial renal failure requiring kidney transplantation
and dialysis
9. Liver disorder (Hepatitis B and C) associated with complications like cirrhosis of
liver.
10. Serious injury including fracture of bones, head injury.
11. Vertebral column injury etc.

The medical expenses have become too high and injury or disease does not come with prior
notice. The requirement of quality medical care has generated the market for health care insurance
policies.

14.9 Personal Accident/Disability Income Insurance

The word 'accident' means an unforeseen or unexpected event. Accidents don't happen only on
the roads. They can occur in office, while traveling or entertaining, or even at home while doing
everyday chores.
In terms of finances, they make a double effect. On the one hand, healthcare spending increases
due to the treatment taken. On the other, income is disrupted till one can work again. It is here
that accident insurance plays the crucial role.

According to experts, for people below 45 years of age, the risk of accident is much higher than
of health problems. Health risks and expenses increase with age and tend to typically surface
when a person is 45 years or older. People between 25 and 55 years of age are two times as likely
to get disabled than die. Thus, a large number of Disabilities occur through accidents and one
cannot ignore the importance of accident insurance.
Accident insurance is a form of health insurance against loss by accidental bodily injury. This
protects the insured against loss due to injury. It also covers the loss of earnings resulting from
injury of the insured person.
In personal accident insurance, it is deemed that a person has unlimited financial interest on his
own life but in practice there is a financial limit to the sum of insurance that matches the life of
an individual.

304 LOVELY PROFESSIONAL UNIVERSITY