Life Insurance: Does Road Accident Death cover under Life Insurance Policy?

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Before we get into Road Accident Deaths let us understand the main purpose of a Life Insurance policy. A person must buy a life insurance policy especially if he or she is earning an income that helps maintain a certain lifestyle for their family. More so if they are the sole bread earners, as a life insurance policy will ensure their family does not have to deal with a financial loss in addition to having lost a loved one.

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A life insurance is a contract between an insurance policy holder and an insurance company, where the company promises to pay the nominated beneficiary a sum of money in exchange of a premium upon the death of the insured person. It means life insurance provides protection to income but only in case of Death.

A road accident death is therefore no different than any other cause of death and the insurance company is bound to uphold the contract and pay the nominee the agreed sum insured. The only exception to this claim is when a policy holder’s road accident and thereby subsequent death, is due to driving under the influence of alcohol or narcotic substances. If that is the case then the insurance company can reject the death claim. It is an additional benefit with the life insurance plan as a protection for you and your family against accidental death or disability. It functions as a double indemnity, whereby Death by accident is compensated through both life policy amount and amount on the Accident Rider.

Also Read: Top Reasons for Life Insurance Claim Rejection

Also Read:  What to do if the insurance company rejects your claim  

No human being is invincible nor can we predict our future and accidents happen without warning. Road accidents in India where incidents of reckless driving have made every day commute risky are an unfortunate but common occurrence. Insurance companies also offer a ‘Accidental death benefit’ (ADB) rider.  ADB are riders or provisions that may be added to basic life insurance policies that will give you additional life cover at a cheaper cost as compared to purchasing another policy. The ADB will ensure that your beneficiaries get the additional life cover in case of your demise due to an accident including a road accident. So, Riders are optional. It gives additional benefits that you can add to your Life Insurance Plan, over and above the basic insurance coverage.

Normal Personal Accident Insurance will cover loss of income in case an accident leads to temporary disability or inability to work. But Accident Rider under the life Insurance does cover these medical eventualities.

So, drive safe and also make sure you invest in a life insurance policy for the continued financial well being of your family if anything were to happen to you.

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Virendra Suri

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