Accidental Death and Disability Benefit Rider are add-ons policies for plans such as Jeevan Anand and Jeevan Labh. The insurers under this plan get additional benefits in case of death or disability due to the occurrence of accidental events. This rider can only be purchased with basic plans as the sole sale of this policy is not authorized by LIC.
Accidental death occurs due to sudden events such as road accidents. While permanent disability occurs when routine activities are not performed independently due to fatal injuries from accidents.
Features of Accidental Death and Disability Benefit Rider
- The policy can be only purchased with base plans during the policy terms. It cannot be separately purchased.
- If the rider is purchased with existing policy terms, then the remainder of the premium should be paid within 5 years. However, within these five years, the insurer must not attain 70 years as he/ she will become non-eligible for claiming benefits.
- Sum Assured from the rider is equivalent to that of the base policy.
- The maximum sum assured is 2 crores if the rider is collated with LIC Jeevan Shiromani Plan.
The conditions for eligibility are provided below
|Minimum age entry||18 years|
|Maximum age entry||65 years|
|Minimum Assured sum||100000|
|Ceasing age for the rider||70 years|
Benefits of the Rider
Accidental disability Rider Benefits
If the policyholder becomes permanently disable due to an accident, a further premium of the rider shall not be paid. The sum assured for the rider is converted into monthly installments and will be paid to the policyholder for each month for approximately 10 years. The maturity or death claims of the base plan will also be paid as a normal policy. The disability must occur within 180 days of the accident which must be unforeseen and sudden.
Benefits for Accidental Death
In case the policyholder dies due to accident injuries LIC will pay an additional amount that is equivalent to the rider assured sum. The death must be within 180 days of the accident.
Benefits of Surrender
There is no surrender or paid-up values for the rider as it is a sub policy. If the policyholder chooses for surrendering the base plan then the premium charged would be returned. The policyholder may not receive refunds if the base plan premiums are not regularly paid.
Exclusion under Rider
The policyholder will not receive any benefits if the death or disability is due to suicide or self-inflicted. Besides, the rider will cover instance material imbalance accidents, insanity, or intoxication by the policyholder. The death or disability must not be the result of participation in commotion, wars, adventure sports, and others.
Also, the policyholder must be engaged in illegal activities stealing, drug smuggling, and others. If the policyholder is served in the military, the policy will cover death or disability if he/she was not on duty in war or fight for natural calamity. Besides, the insurer will not receive any benefits if death or disability takes place after 180 days from the date of the accident.
The premiums paid for the rider are taxable up to 1.5 lakhs in INR under section 80 C of the Income Tax Act. In case of death benefits, the sum assured will be tax exempted.
Documents required for Claiming Accidental Death and Disability Benefit
To claim the benefits of Accidental Death and Disability Benefit, documents are a must.
- Copies of FIR, police inquest report, and panchnama is required.
- Reports of Post mortem copies are required along with newspaper cutting
- Driving license, if the insurer was the driver during an accident
- Final verdicts are given by Subdivisional magistrates
- Treatment records of the Hospital
In case, the accidents have not occurred due to road unforeseen circumstances, other documented proof is required. It might include reports from an eyewitness, physician’s prescription, reports or statements from government officials, and others.
In today’s fast-paced life, individuals need to avail benefits from Life Insurance Policies like Accidental Death and Disability Benefit Rider. It helps in covering contingencies and financial losses due to unforeseen circumstances. This policy is not purchased separately, hence must be within the policy term duration of the base plan. If you want to know more then visit the website licindia.in.
Frequently Asked Questions
- How can apply for Accidental Death and Disability Benefit Rider?
It can be applied with the current base plan. Talk to the executive in a nearby branch or visit the LIC website for details.
- Can I purchase this plan separately?
No, this plan is sub- policy and must be purchased within the policy term of the base plan. The plan can be added later, however, it must be done within the remaining five years. During this time, the insurer must not attain the age of 70 years.
- What are minimum and maximum age limits?
The minimum age limit is 18 years while the maximum is 65.
- Tax benefits under this policy?
The premiums paid for riders are taxable while the death benefit is tax-free.
- What is the maturity amount?
There is no value for maturity, surrender, or paid-up since it is a sub policy. Maturity amount can only be realized for base plan survival or surrender.
- what documents are required if not a road accident?
Documents required for other types of accidents include eye witness statements, reports from government officials, and physician reports.
- What are exclusion under this plan?
Exclusions are accidents must not be self–inflicted while the insurer must not be an employee in the army, police, or natural calamity fighting force.
- What are the surrender benefits?
There are no surrender benefits, however, if the insurer decides to surrender basic plans, he will receive refunds of the premium paid.
- How is disability considered in rider benefits?
If the insurer is unable to put on clothes, keep personal hygiene, or perform any of the routine tasks. Then, the benefit is provided on total and permanent disability.
- What is the time limit considered for Accident Disability and Death?
The death and disability of the insurer must be within 180 days from the date of the accident.