Page 313 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Key Benefits

1. Covers claims arising out of Terrorism or acts of Terrorism
2. Covers against Accidental Death or Permanent Total Disablement (PTD)
3. Choose among Sum insured options of Rs. 3, 5, 10 and 20 Lakhs

4. Choice of cover period: 3, 4 or 5 years
5. No health checkup required
6. Easy Claim Process with minimal documentation

Eligibility

1. Age criteria at entry: Minimum 18 years, Maximum 70 years.

2. The applicant can buy the policy for his spouse aged between 18-70 years. Need for Personal
Accident Insurance Covers
India continues to lose the maximum number of lives due to terrorism after Iraq. Terrorist
activities are no longer limited to the sensitive border areas. The recent bomb blasts in Jaipur,
Bangalore and Ahemdabad and 26/11/08 incident of Mumbai have put the entire nation under
threat. Personal Accident Cover protects against terrorism related accidental losses and death.
According to a report by IIT Delhi on traffic injuries and fatalities in India, road traffic accidents
take a toll of almost 1.2 million deaths a year and additionally injure or disable between 20
million and 50 million annually.
Personal Accident Insurance protects the insured against Accidental Death and Permanent Total
Disablement (PTD) and also protects against terrorism-related accidental losses.

!
Caution 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.

Notes Like other life insurance riders, the maximum accident cover under riders is 30 per
cent of the sum assured.

14.10 Catastrophe Insurance

Past decades have shown an increasing severity and frequency of losses arising from natural
catastrophes: earthquakes, hurricanes, floods and large-scale fires. It is still controversial whether
an increasing frequency of hurricanes and floods may be attributed to climate change (global
warming), but it is clear that concentration of values in catastrophe-prone coastal areas has
brought about an increase in the amount of damages. From 1970 to 1990, population in the
Pacific and South Atlantic coastal states of the United States increased by 51% and 45% respectively,
compared to a countrywide increase of 24% over the same period.

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