The Insurance Regulatory and Development Authority of India (IRDAI) put forward a standard personal accident product with common coverage and policy wordings over the industry. The proposed move is aiming an increase in penetration of the product. From April 1, 2021, onwards the general and health insurers should offer the product.
There are so many varieties of personal accident insurance products available in the insurance market. Each product is having its own unique features. Hence customer may find it difficult to choose the appropriate product. So, the authority has decided to mandate all general and health insurers to offer the standard personal accident insurance product to have a standard product with common coverage and policy wordings across the industry.
According to the draft guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI), every health insurer who has been issued a certificate of registration to transact general and or health insurance business should offer the product compulsory. The minimum amount insured shall be ₹2.5 lakh and a maximum should be ₹1 crore. If all terms and conditions remain the same insurers can offer on their own beyond that and can use the same name for the product.
The insurance cover offers permanent disablement or partial disablement due to accidents and protection against death to the policyholders. The insurance product will cover the expenses towards hospitalization also. One year will be the term offered for a standard product. The stakeholders have been invited by December 18. The standard product should carry the basic mandatory covers. The covers will be invariable over the market. In consonance with the norms, the insurer can determine the price of the proposed to be offered.
The IRDAI proposed a benefit equal to 100 per cent of the sum insured shall be payable on the death of the insured person due to an injury sustained in an accident during the policy period on the base covers. According to conditions a one-time educational grant of 10 per cent of the base sum insured which should be payable for a maximum of two dependent children of the insured.
