IRDAI has asked general and health insurers to offer standard personal accident insurance product with uniform features and benefits.
“The insurance market is having a wide variety of personal accident insurance products. Each product has unique features and the insuring public may find it a challenge to choose an appropriate product. Therefore, with the objective of having a standard product with common coverage and policy wordings across the industry, the insurance regulator has decided to mandate all general and health insurers to offer the standard personal accident insurance product,” said IRDAI.
The standard accidental policy will offer coverage for accidental death, permanent or partial disability and hospitalization expenses incurred due to accidents.
Here are some key features of the standard personal accident cover:
- Comes with one-year tenure
- Pays up to 100% of sum insured if an insured dies of accident or suffers permanent disablement within one year of buying the policy
- Permanent disability includes loss of both eyes, physical separation and loss of use of both hands or legs and any other consequence due to which insured person cannot work
- Pays up to 50% of sum insured if an insured suffers from partial disability i.e. loss of one eye sight, hand or leg and so on
- Pays up to 10% of sum insured for hospitalization
- Grant of up to 10% of sum insured to dependent children (up to 2 children)
- Sum insured can be in range of Rs.2.50 lakh – Rs.1 crore
IRDAI has asked insurers to launch such a policy by April 1, 2021.