In our risky world, the IRDAI (Insurance Regulatory and Development Authority of India) is constantly making insurance a stronger and more significant contributor to people's sense of security. It has been concentrating not just on health insurance but also on other non-life insurance in order to develop better insurance solutions for citizens.
What exactly is Saral Suraksha Bima?
All general and HEALTH INSURANCE firms in India must offer a standard personal accident insurance policy beginning April 1, 2021. The policy will be named Saral Suraksha Bima, as mandated by the regulatory authority, IRDAI, and will be followed by the name of the insurer. This will be a basic accident product with common coverage and policy wordings among insurers that every policyholder should be familiar with. The coverage will be available for one year.
What exactly does the policy entail?
The regular Saral Suraksha Bima product would be given on an individual basis, according to the final guidelines issued by IRDAI. However, if offered as a family plan, the sum insured must be applied to each family member separately. The minimum amount of sum insured under the policy is 2.5 lakh, with a maximum of 1 crore. The total amount will be in multiples of $50,000.
Furthermore, the minimum age for covered members is 18 years old, and the maximum age to obtain this policy is 70 years old. If there are any dependent children (aged 3 months to 25 years), they are also eligible for coverage under the plan. However, policy terms and conditions (such as age coverage amount, policyholder age, and so on) may vary depending on the underwriting policy of each insurer.
What does the policy cover?
Along with the normal personal accident product's base coverage, policyholders can now choose from three optional covers. On a benefit basis, two out of three covers, namely temporary complete disablement benefits and education grant covers, will be available. However, the third cover, hospitalization expenses incurred as a result of an accident, will be provided on an indemnity basis, just like a cashless mediclaim policy.
What are the advantages?
Demise: If the insured dies as a result of an injury received in an accident, 100% of the pre-decided sum assured will be paid as a benefit if the death occurs within 12 months of the accident date.
Permanent Total Disability: If the policyholder suffers from permanent total disability, they will get a benefit of 100% of the sum assured. However, the disablement must be the result of an accident that occurred during the insurance period.
Partial Disability: A payout of up to 50% of the total value insured will be paid to policyholders suffering from partial disablement as a result of an accident, depending on the severity.
Incapable of Engaging in Employment: Policyholders who work will also be protected by this personal accident insurance. If the insured person is injured in an accident and is unable to work due to it, they will be eligible for compensation at the rate of 0.2% of the base sum insured every week until they can return to work.
Grant for Education: This policy will also protect the insured's dependent children. Any dependent children under 25 who are pursuing an educational course will be eligible for a one-time educational award of 10% (of the base sum insured).
Costs of Hospitalization: Hospitalization expenses incurred as a result of an accident will also be reimbursed up to 10% of the base sum covered.
What are the exclusions?
Warlike Situations: Claims for death, disablement (permanent or temporary), or hospitalization of policyholders as a result of warlike conditions such as wars, revolutions, invasions, restraints, and so on shall not be covered.
Self-harm or self-injury: Claims based on intentional self-injury (unless done to preserve life or in self-defense), suicide, or attempted suicide will be barred.
Incidents using radioactive materials: Claims based on ionizing radiation or radioactive pollution from nuclear fuel or nuclear waste will be denied.
Conclusion
Accidents cannot be avoided, no matter how hard we try. With so much volatility in the world, this new personal accident coverage is a must-have in your portfolio. This policy is comprehensive, and it has been designed to provide maximum comfort to policyholders.
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