Page 233 - Misc Ebook IC 78

Miscellaneous Insurance

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.
However, this formula is not strictly adhered if the policy
is taken for Capital Sums only.

Q1.b) Briefly describe the free additional benefits
available under the individual personal
accident policy.

Ans. The additional benefits without any extra premium
are as follows:
(i) Carriage of dead body - Expenses incurred for

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