The Insurance Regulatory and Development Authority of India (IRDAI) has come out with a standard personal accident cover. The general and health insurers have to mandatorily offer Standard Personal Accident Insurance product from April 1, 2021.
Key Points
- This standard personal accident insurance product is named Saral Suraksha Bima.
- IRDAI has issued guidelines for the standard product. The basic mandatory cover features and policy wordings will be uniform.
- However, the cost of the Saral Suraksha Bima will vary with the regulator allowing insurers to determine premium.
- The minimum sum to be insured under the standard policy will be Rs 2.5 lakh while the maximum sum insured is Rs 1 crore.
- The tenure of the product will be 1 year and the policy can be renewed. The product is for those aged between 18-70 years and can be offered as a family cover too.
- As per the guidelines, under the base cover, 100% of the sum insured will be payable in case of the death of the insured person, due to an injury sustained in an accident during the policy period.
- Similarly, 100% sum insured will have to be paid if the insured person suffers Permanent Total Disablement, solely and directly due to an accident during the policy period.
- However, the permanent total disablement clause will be subject to a number of conditions, including loss of sight or injury that disabled the insured person from engaging in any employment or occupation.
- Permanent Partial Disablement due to an accident during the policy period will also be covered under the policy.
- As per the guidelines, a specified portion of the sum insured will be paid in such cases of Permanent Partial Disablement.
IRDAI has also allowed the insurers to provide optional covers, in addition to the standard product, including those under which hospitalization expenses arising due to accident will be covered; compensation for the period of temporary total disablement will be provided; and a one-time educational grant of 10% of the base sum insured paid, per child, in the event of death or permanent total disability of the insured person.
