IRDAI Launches Standard Personal Accident Cover

The Insurance Regulatory and Development Authority (IRDAI) has launched a standard personal accident cover called Saral Suraksha Bima. This accident cover will be mandatorily offered by the general and health insurers from April 1, 2021.

Saral Suraksha Bima

  • This product has assured maximum sum of Rs 1 crore while the minimum assured sum of Rs 2.5 lakh.
  • Beyond this specified range, insurers are free to offer the sum assured on their own. For such sum assured, same name can be given if all terms and conditions are same.
  • The product also comprises of a basic cover for which entire sum assured will be paid by the insurance company after the death of insured person because of injury sustained in accident. In such cases, death occurs within 12 months from the date of accident.
  • In cases of the permanent total disablement, similar benefit will be paid by insurance firm.
  • In the partial disablement condition, benefit equal to the sum assured of up to 50 % will be paid in accordance with the severity of disablement.
  • Policyholder will get benefit under the base cover even after policy period has ended but the benefits should be availed within 12 mo­nths from date of accident.
  • The company will also be providing an Optional cover. Under the optional cover, if insured person sustains an injury in an accident because of which they are incapable of engaging in employment then those persons will be eligible for the compensation at 0.2 percent rate of the base sum insured in a week till they get return to work.

Other Benefits

  • Under the policy, hospitalisation expenses will be compensated up to the limit of 10 percent of base sum insured.
  • One-time educational grant of 10 percent of the base sum insured will also be payable to the dependent children of the insured. In order to avail the benefits, the children should be pursuing an educational course and should not above age of 25.
  • Further, the sum insured will be increased by 5 per cent every year for each of the claim-free policy year. In such cases, Policy is required to be renewed without break.


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