Page 130 - Misc Ebook IC 78

The Insurance Times

Q1.A) Personal Accident Policies are deemed to be
benefit policies. Examine this statement
along with examples.

Q.B) On what basis are the risks classified for
rating purpose in personal accident
insurance policy.

Q.C) Group personal accident insurance policies
need not always the on 24-hour cover basis.
What are the alternatives available? Discuss
them.

Ans. The Personal Accident policies are not strictly
contracts of indemnity. This is because life is precious
and cannot be compensated by money. However on
practical consideration a measure of indemnity does
come into play. Majority of these policies are termed
'benefit policies' as they are distinct from the indemnity
policies.

This is because in the event of happening of an insured
event a specified sum of money is payable irrespective
of the amount of pecuniary loss actually suffered by the

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