Page 311 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Private Insurers: Personal accident insurance policies are offered by private players like Iffco
Tokio General Insurance, Bajaj Allianz General Insurance, Royal Sundaram Alliance Insurance
and ICICI Lombard.
National Insurers: National Insurance, New India Assurance, Oriental Insurance and United
India Insurance - also offer personal accident insurance. The four general insurance companies
offer the same policy and a person can buy it from any of the companies.

General Eligibility

Any person between the age group of 5 and 70 years can apply for a personal accident insurance
policy. However, if one purchases the policy from Royal Sundaram, one needs to be between 18
years and 70 years, and in the case of Bajaj Allianz, the policy is only sold to persons in the age
group of 18 years to 65 years.

Proof of Disability and Premium

Assured must provide a satisfactory proof of disability. If the claim is admitted the waiver of
premium will be allowed from the due date of the premium following the date of accident,
which brought about the disability.

If the decision is not taken before premium due time then the premium is to be paid till the final
decision is taken. However, the insurer will refund premium, once the claim is admitted.

Disability Benefit

A feature added to some life insurance policies, which provides for the waiver of premiums
upon the furnishing of proof that the insured has become totally and permanently disabled.

Sum Assured

Typically, the premium is around Rs 125-750 for a Personal Accident Insurance Plan (PAIP) with
a Rs 250,000 cover.

Premiums

Premiums don't vary with age and insurers give discount of around 10 per cent when family
members coverage is taken. PSU insurers charge premiums according to risk profile, whereas
some private insurers charge a flat premium, irrespective of risk profile.

Types of Risks

People whose work is more static in nature, such as lawyers, accountants, teachers or the self-
employed are regarded as normal risk by the insurers. Builders, contractors, engineers and
veterinary doctors, whose job includes frequent site visits, are classified as medium risk. Those
who work in high-risk industries, with chances of accidents, fall in the high-risk category.
Comprehensive Coverage

Comprehensive coverage is always beneficial as all coverage's together will be given at very
less premium-comprehensive coverage of the four contingencies of death, permanent total
disability, and permanent partial disability, temporary total disability must be taken even
though companies offer the option of covering one, two or three of them.

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