Personal Accident Insurance

Group or Individual Personal Accident covers loss resulting directly and independently of all other causes bodily injuries caused by accident happening on duty and off duty in case of employees.

FIRST BASICS

What is Personal Accident Insurance (Individual)? 

The Personal Accident Policy insurance covers any accident caused to the insured by any physical, violent and visible means resulting into injury, which may lead to the death of the insured, or result in some temporary or permanent disablement. Some examples are like falling down a staircase, being hit by a speeding vehicle etc.

Who can take this cover?

Any individual in the general age group (18-60) years is eligible for this policy. Also, an entire family can be covered by this Insurance. Firms and Companies can take this cover to protect their employees against any personal accidents. Persons beyond this age group (upto 70 years) can also be covered by paying some additional premium.

What is the nature of cover? 

Personal Accident Insurance is a benefit policy which compensates the insured for an injury from an accidental event. Such injuries may lead to death or disablement of the insured.

The Insurance Company pays applicable percentage of the sum insured, depending upon  the extent of the injury and also on whether such injury has resulted in the permanent or temporary disablement of the insured. E.g., if the injury is as serious as the loss of both the limbs, 100% of the  Sum Insured can be claimed

Also, there may be cases when the injury results in the insured being unable to attend work for a considerable  period of time, though the injury may not result in permanent disablement. Such cases are also covered in the policy, wherein compensation is given depending upon the duration for which the insured is incapacitated.

Are there any additional benefits under the policy?

Yes. Insurance Companies usually grant some additional benefits as part of the policy (subject to reasonable limits)  e.g.

  • Expenses incurred for carriage of the dead body of insured (in case of death due to an accident) to the place of residence. 

 

  • Policies are extended to provide compensation towards education of the dependant children of the insured, in the event of Death or Permanent Total Disablement.


Can I choose specific benefits, e.g. I may want a cover for death only, or a comprehensive cover for death as well as disablement?

Yes, you can. It depends upon the type of scheme chosen. E.g. one can take a comprehensive scheme covering  death, permanent (total or partial) disablement, or any disablement which results in the incapacitation of the insured for a certain period. Or else, one can take a scheme which covers death only.

The premium rates would obviously vary depending upon the benefits available under any particular  scheme.

How do I choose specific benefits/combination of benefits?

The Personal Accident Insurance offers you a choice of tables, depending upon the extent of cover you require. E.g. 

Table A offers you a comprehensive cover for

 1. Death:                                         :   100% sum insured
 3. Permanent total disablement        :  100% sum insured
 4. Permanent partial disablement      :   Percentage as per continental scale
 5. Temporary total disablement       :   upto 75% of actual maximum period weekly salary of 52 week

 6. Medical Expenses                   : upto JD.5,000/- per person per injury. The limits are                                                 standard but can be tailormade to suit group requirements.

 We can  offer you cover for death only.

Is there a cap for the Sum Insured under these schemes?

Yes, it depends upon the annual gainful income of the insured. E.g., the maximum cover under a Comprehensive policy like the one mentioned above under Table A, is generally twice your annual income. This is because Insurance Companies especially try to limit the liability for temporary total disablement, which is dependent on the period for which you are indisposed. 

However if you choose a table with say Benefits 1 to 4 you can take insurance for 6 times of your Annual Income.

It should be noted that if you choose more than one table, there is also a total cap on the Insurance, which is generally 6 times your annual income.

SAVE ON PREMIUM

·         Indicate your occupation correctly. The premium costs depend on the nature of your occupation. E.g., a person working in a mine would have to pay a higher premium than an accountant working in an office. The occupations are generally classified into three risk categories, with premiums differing for each.

·         On expiry of the policy, ensure that it is renewed in time. First Policy gives you an intimation for renewal. On every renewal for a Claim free year, you are entitled to a Cumulative Bonus of 5%. E.g. a policy of JD.1,00,000/-, on renewal, will automatically be enhanced to JD.1,05,000/-, while you continue to pay the premium for the original insurance value of JD.1,00,000/-. Thus for the same premium you get an enhanced cover.

·         Use the Family Cover Packages to your advantage. If you cover your spouse and children as well, you will be entitled to a group discount on the gross premium.  First Policy determines the benefits you can get under the Family Cover Package.

·         There is a loading on the premium costs for senior citizens.  If you have crossed 70 years, you have to bear a load on the
premium costs depending upon whether it is a renewal of an existing policy or a new policy altogether.

The rate chargeable is always applied on "Per Mille" basis (for every thousand units) on the Total Sum Insured (Limit of Indemnity) and is very dependent to the

 Age,

nature of work

Profession salaries

 benefits required

There are Conditions which can be referred to in the policy.

Here you will be able to seek information and request quotation on line