India sees approx 10 Million Death each year and 2% death happens due to accident.
Probability of death of a young person is higher due to death than natural causes.
In Insurance we always state that Death is certain but timing is uncertain and we pitch Insurance to a young person who is earning and has dependents. So risk of accidental death is highest in this target audience.
This insured population can increase the Life cover by opting for Accidental Death cover. This accidental cover is can be taken in the form of rider from Life Insurance companies or as independent cover from General Insurance Companies.
This cover can be taken individually or under group insurance. Companies must take Accidental Death cover to mitigate the liability.
We need to understand meaning of accident first before filing claim under accidental death.
What is an Accident?
Bodily injury suffered anywhere in the world caused solely and directly from accidental external violent and visible means and which are independent of any other cause and not by sickness, disease or gradual physical or mental wear and tear. Event of death should have happened due to outward violent, visible and independent impact.
9 Things you should know about Accidental Insurance Policy
However, accidental death need understanding and many times nominees feel dissatisfied when claim is rejected. There are many exceptions which need explanation as given below:
- If disease is caused by an accident and death happens within 90 days of accident then cause of death is disease but proximate cause is accident hence claim should be paid.
- If death is caused by accident but reason of accident is self injury then claim can be rejected, For example, crossing road in wrong way or driving without helmet.
- If death happened by accident during criminal activity then claim is not payable.
- Accidental death claim is also not payable under suicidal action and under insanity.
- Reduced accidental claim is payable in case insured income is not the same as at the time of proposal for example when applied person was employed with an income of Rs 10 lakh but at the time of death person was unemployed then claim is payable.
- Accidental death claim is also denied if it can be proved that person was under influence of alcohol or drug. But a person was travelling in a taxi and was under alcohol or driver was under alcohol then claim will be paid.
- Declaration of occupation is very important as it is denied if you are occupied in any hazardous activity like Driver / Miner / Army / Pilot etc.
- Accident death cover is universal but will be rejected if not supported by Police report.
- Death during Child birth is not considered accident and claim is rejected.
So go ahead and go for Accidental insurance with premium of approx Rs 1000 for Rs 25 lakh. Do not forget nomination and informing them about the Policy.
However, if you are facing any difficulty we are happy to help you!! Contact us at InsuranceSamadhan.com and be a part of the family. Rest assured; we will take care of your worries.
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