Personal accident insurance covers death or disablement to the insured person, arising out of accident. Personal Accident policy may be renewed by mutual consent every year and in such event, the renewal premium shall be paid to the company on or before the date of expiry of the policy or the subsequent renewal thereof. The company may at any time, by notice in writing, terminate the policy and company shall return to the insured a pro-rata part of the premium. In personal accident insurance, the main factor used to arrive at the premium is the occupation.
Basic principles that guide personal accident insurance include
- Utmost good faith,
- Insurable interest and
- Subrogation etc.
What are covered under Personal Accident Policy?
- Permanent total disablement,
- Permanent partial disablement and
- Temporary total disablement are covered under P.A. policy.
The exclusions commonly found in personal accident policies include payment of compensation in respect of death, injury or disablement of the insured, from intentional self-injury , suicide or attempted suicide or from service in the armed forces etc. Medical expenses, war and allied risk extensions can be availed under a P.A. policy for an additional premium.
Group personal accident policies are availed by large groups such as employees, club members etc. A group discount can be offered under such policies.
Flight insurance coupons, Janta Personal Accident insurance etc. are different types of P.A. covers offered. Rajarajeshwari Mahila Klyan Yojana, Bhagyashree child policy are some of the P.A. based social insurance schemes.