The insurance provides compensation in the event of death or disability directly due to accident.
This policy is basically designed to offer some sort of compensation to the insured person who suffers bodily injury solely as a result of an accident which is external, violent and visible. Hence death or injury due to any illness or disease is not covered by the policy.
The following types of coverages are offered under a Personal Accident policy:-
1. Death cover wherein 100% of the capital sum insured is payable.
1. Coverage under Table D
2. Loss of two limbs / both eyes / one limb and one eye wherein 100% of the capital sum insured is payable.
3. Loss of one limb or one eye wherein 50% of the capital sum insured is payable.
4. Permanent Total Disablement other than above e.g. paralysis due to an accident, wherein 100% of the capital sum insured is payable.
1. Coverage under Table C
2. Permanent Partial Disablement i.e. where a part of the body becomes permanently disabled due to an accident, e.g. total and irrevocable loss of use of a finger due to an accident. In such cases, a percentage of the capital sum insured as specified in the policy is paid.
The insured can claim only under any one of these sections as a result of any one accident.