The personal Accident policy is generally
given to any individual who is in the age group
of 5-70 years
without any loading
on premium. In the case of a
policy holder having an insurance cover with a company and if they he or she chooses to renew the policy after attaining the age of 70 , the company
may renew the cover subject to certain
loading on the renewal premium. In case of fresh proposals for personal
accident cover from persons who are aged 70 years or above but below the age of 80 policies could
be issued at the
standard rates subject to a loading of 10 % on te premiums. However some companies offer 10% loading only up to
the age of 75; and thereafter up to the age of 80 a loading of 20 % on premium is offered. As the
contingency covered is an accident and its consequences , no medical examinations is required at the time of fresh cover or
renewal.
A personal accident
insurance policy provides for the payments for the of an agreed amount called Capital sum insured,
provides the accident results in death
or loss of a limb, an eye etc., as envisaged in the contract. While
lodging a claim .It is not necessary
to establish the fault of someone
that someone is legally liable.
What is required to be established is that:
(1) An accident has occurred
leading to the disability:
(2)
The insured has suffered
injuries as envisaged in the
policy. (3) The accident is not a result of the insured taking part in any of the activities excluded under the
contract. The claim contract under the
policies will be settled under any one of the six contingencies mentioned under the head Contingencies
Covered by a standard personal
accident policy. A personal accident
policy offers rounds the clock cover to the insured during the currency of the policy ,
irrespective of the fact where
he/she stays in which part of the globe
at the time of the accident . However
the claim on policies issued in India
will be settled in the Indian Rupee
Currency (NR) only.
As the Indian insurance
Act does not permit the assignments of these policies an insured may
assign the policies under the Transfer of Properties Act. The contract is terminable by the either by party. If the insurer chooses to cancel the contract, then pro data
premiums becomes refundable . For example , if an insurance companies wants to withdraw long-term PA policies due
to adverse claim experiences
this clause could be invoked. In the
event of the cancellation of the contract by the insured , a short-period refund of
premiums is made subject to no claim under the policy. Travel as a
passenger in a standard licensed
aircraft is automatically covered.