Personal Accident, Life Insurance Include Terrorism, Say Agents
Hello, does my personal accident policy cover injuries sustained in terrorist attacks? This was one question from clients that kept financial advisors busy all through Monday, the first time Mumbai got back to business as usual after last week's carnage.
‘‘Everyone wants to know whether their personal accident cover also includes terror strikes,'' says Mukesh Dedhia, director, Ghalla & Bhansali Securities. ‘‘Also, many were inquiring about getting a personal accident cover.'' Clearly, Mumbaikars are increasingly concerned about their personal safety, following the massacre that left hundreds dead and many more injured.
However, advisors found it difficult to answer the simple question. ‘‘There is a bit of confusion. Different company officials are providing different answers,'' says another financial advisor, who didn't want to be quoted. The confusion was apparent when a senior official at New India Assurance said personal accident covers terrorism and it applies across the industry, while a development officer with the same company denied it.
‘‘Public sector companies cover it, but private sector firms don't,'' he said.
‘‘Personal accident and life covers include terrorism. Companies can't deny claims,'' said Rakesh Jain, an insurance agent. ‘‘But if you are taking shopkeepers' insurance or fire insurance, you have to pay an additional premium to obtain the cover,'' he adds.
However, financial advisors are not taking any chances. ‘‘Don't assume that your cover also includes terrorism. Get a clarification from the company,'' says Dedhia. He also adds quickly that policyholder's shouldn't go by what's promised by the insurance sales person. ‘‘Try to get a clarification from a senior official from the insurance company.'' As for those enquiring about personal accident cover, financial advisors say people should definitely have a personal accident policy. ‘‘A life insurance cover, health insurance cover and a personal accident cover are must for every family person,'' says a financial advisor.
‘‘Personal accident cover will assure that you get compensation (5-125% of the total cover, depending on the extent of handicap) if you meet with an accident. You also get death benefit,'' he adds.
Financial advisors also had a suggestion for their clients: Don't be stingy about the quantum of cover. Get a cover at least 3-4 times your income. This is because most handicap benefits are a percentage of your total cover.
Source:-The Times of India Delhi 2st December 2008 P.15
For any query:- legalpoint@aol.in
Source:-The Times of India Delhi 2st December 2008 P.15
For any query:- legalpoint@aol.in
3 comments:
ICICI Lombard Personal Accident Insurance policy covers you not only against Accidental Death and Permanent Total Disablement (PTD), but also against terrorism and acts of terrorism. In case of the death of the insured arising out of terrorism or acts of terrorism within the policy period, the nominee is compensated with the sum Insured. The Company shall also pay compensation against in case of death of the insured due to an accident within the policy period, permanent and total loss of limbs, sight etc. arising out of terrorism or acts of terrorism.
As per mu experience Royalsundaram General Insurance the services provided by them are good.In case of the death of the insured arising out of terrorism or acts of terrorism within the policy period, the nominee is compensated with the sum Insured.
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