Page 55 - Misc Ebook IC 78

Miscellaneous Insurance

policy then bears to the extent of its own limit of liability.
Although an insured can opt for a number of Personal
Accident policies, insurers generally tend to restrict a
person to prevent over insurance.

A condition is also incorporated sometimes that no
additional coverage can be taken without the consent of
the existing insurer.

Q1(b) Explain the basis on which risks are
classified in Personal Accident Insurance for
the purpose of rating.

Ans. Risks are classified into three groups on the basis
of occupation for the purpose of rating. They are :
(i) Risk Group I - Accountants, Doctors, Lawyers,
Architects, Consulting Engineers, Teachers,
Bankers, Persons engaged in administrative
functions, persons engaged in other occupations of
similar hazards.

(ii) Risk Group II - Builders, Contractors and
Engineers engaged in superintending functions,
Veterinary Doctors, Paid drivers of motor cars and

Sashi Publications - www.sashipublications.com 51

Copyright@ The Insurance Times. 09883398055 / 09883380339