insurance: After health and life, now a standardised personal accident insurance cover in the work by IRDAI

Mumbai: India’s insurance regulator has floated draft guidelines for a standardized personal accident cover on Wednesday aimed at simplifying the product constraints for mass adoption, following similar moves to standardize both life and health insurance products in 2020.

“The insurance market is having a wide variety of personal accident insurance products,” said IRDAI the exposure guidelines.

“Therefore, with the objective of having a standard product with common coverage and policy wordings across the industry, the Authority has decided to mandate all general and health insurers to offer the standard personal accident insurance product,” the insurance regulator added.

The cover will offer protection against death, permanent disablement, partial disablement due to accidents. The minimum sum assured has been fixed at 2.5 lakh whereas an insurer can offer covers up to Rs 1 crore. The base product would be available for customers between the ages of 18 and 70.

A 100% sum assured would be liable to victims of accidents that result in death or permanent disablement, as per the draft guidelines whereas partial disablements would have different predetermined caps for reimbursements. The policy period has been kept as one year.

Moreover, these covers will also be liable to pay for hospitalization expenses up to 10% of the sum assured, IRDAI has said. Stakeholders have been given time till December 18 to submit their feedback and suggest names for the product.

Additionally, the product can also come with riders and will have grants for education expenses for the family of the insured in the event of permanent disablement. The regulator aims to make these products available from FY22, it said in the draft guidelines.

“Every General and Standalone Health Insurer, who has been issued a Certificate of Registration to transact General and/or Health Insurance Business, shall mandatorily offer this product,” according to IRDAI. “This product is allowed to be offered as a group product also.”

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