Page 163 - Misc Ebook IC 78

Miscellaneous Insurance

Q1.B) Which are the extra benefits available under
the Individual Personal Accident Policy, for
which additional premium has to be paid ?

Ans. (i) Medical Expenses - A personal accident policy
can be extended to cover medical expenses incurred
by the insured in connection with the accidental
bodily injury.

(ii) War and allied risks - This risk cover can be
granted to Indian personnel /experts working in
foreign countries on civilian duties at additional
premium.(a) PA policies issued during peacetime
normal period - 50% extra over normal rate (b) PA
policies during apprehensive period like in war like
situations - 150% extra over normal rate.

Q1.C) What is the prime factor for classification of
personal accident insurance risks, for the
purpose of rating and why the same has been
selected?

Ans. The basic principle of fixing the rates of premium in any
class of insurance is based on the degree of hazards

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