Page 377 - Misc Ebook IC 78

Miscellaneous Insurance

Q1.b) Why age limits are made applicable while
underwriting a Personal Accident risk. What
are the limits ? Can these be altered ?

Ans. The minimum age limit is five years and maximum 70
years. In case of persons who already have a cover,
policies may be renewed after the complete 70 years
with up to the age of 80, subject to a loading of 5% of
the renewal premium. In case of fresh proposals from
persons above 70 years but below the 80 years, cover
may be granted at normal rates plus loading of 10%.

Q1.c) Why is it necessary for the Insured to advice
change in occupation to the insurance
company in respect of Personal Accident
Insurance ?

Ans. The basic principle of fixing rates of premium for personal
accident insurance depends on occupation. Generally
speaking, exposure to personal accidents at home, on
the streets etc is the same for all persons. But the risks
associated with profession or occupation vary according
to the nature of work performed. For example, an office

Sashi Publications - www.sashipublications.com 373

Copyright@ The Insurance Times. 09883398055 / 09883380339