Page 131 - Misc Ebook IC 78

Miscellaneous Insurance

insured or his dependents, which in any case cannot be
measured.

However, this does not mean that the insured can make
unnecessary profit out of this policy. When policies are
issued to employers to reimburse their employees or their
dependents on the disablement or the death of their
employees, the insured are indemnified with the exact
amount of compensation paid by them.

Another example is that if a person earns Rs 1000/month,
but approaches an insurer with a 1 lakh personal accident
insurance proposal, it is most likely to get rejected.

Although it is difficult to specify the exact amount of
cover to be granted (as it varies from insurer to insurer)
usually a cover is granted of an amount equivalent to 60
to 72 months earnings of the insured.

The linking of the Capital sum insured to the earnings of
the person also ensured that the weekly benefits provided
to the insured in the event of temporary disablement is
not disproportionate to his actual weekly earnings.

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