LIC has huge coverings for unforeseen situations faced by individuals. Riders are covered under the accidental benefit offered by LIC. Under the policy of Accident Benefit Rider, the insurer is paid additional death benefits only if the policyholder meets with an accident. Accidents covered under LIC must be sudden or unforeseen caused due to visible, violent, and external factors. Also, sudden circumstances under accidents are only covered if the insurer dies within 180 from misfortunes.
If the rider is being purchased during the policy term, the payment of premium must continue for a minimum of 5 years. The policy is valid only for individuals above 18 years, hence 70 years biker cannot avail of this benefit.
The extent of Sum Assured under the Rider Benefit
LIC has laid down certain limitations for the maximum assured sum under Accidental Rider Benefit Plans. The sum assured is either equivalent or less than that of the base policy. The calculations of Accident Benefit Riders are dependent on the coverage under multiple policies. Thus, if the insurer has bought LIC Jeevan Shiromani Plan, the maximum sum insured will not exceed 2 crores.
However, if the insurer has taken other policies, then the sum assured is restricted to not more than one crore (INR). The premiums for the Rider benefits are low and affordable by all.
Eligibility for LIC Accidental Rider Benefit
|Entry Age||18 minimum and 65 years maximum|
|Age at Policy Maturity||The maximum age of the insurer must be below 75 years|
|Assured Sum||Equivalent to the sum assured of the base policy. The minimum sum assured is one crore while the maximum will be two crores.|
|Coverage Terms||Equivalent to the base policy terms|
|Premium Payment Terms||Equivalent to the premium terms of the base policy|
|Premium Payment Frequencies||Equivalent to the base policy undertaken by the insurer.|
Exclusions for LIC Accident Benefit Rider
In death scenarios, the rider might not be paid the sum assured due to many reasons. In case of self-inflicted injuries or has attempted suicide due to mental imbalance or alcohol intoxication, the benefit will not be accrued.
The rider will not be compensated for injuries due to participation in the civil commotion or riots. Also, if the insurer is injured due to adventure sports participation like hunting, racing, parachuting, and others, he/ she will not be covered under the rider benefit. Besides, if the policyholder has committed criminal acts like stealing, drug smuggling, and anti-social activities, the policy will not cover the insurer.
Also, the policy will not cover individuals if they are employed in the armed forces. However, armed forces can be covered only if accidents occur outside the employment. If the insurer dies after 180 days, accidental rider benefit will not be applicable.
Paid-up values and Surrender
The Accidental Benefit Rider by LIC is not coupled with surrender or paid-up value, thus the insurer must continue paying premiums to obtain rider benefits. Since it is a sub- policy of the base plan, hence the grace periods are applicable. The grace period for the Accidental rider will be 15 days for monthly premiums. The premiums are paid on a yearly, quarterly, and half-yearly basis, the grace period for the same is 30 days.
Also, the new policy buyer is given a cooling period of 15 days. Thus, the policyholder has the option to return the plan during this period. In this case, the premium made is paid back to the policyholder. The cooling period of the base plan will be applied to Accident Benefit Rider.
Documents Required for Accident Benefit Rider Acclaiming
LIC Accident Benefit Rider claim requires a set of documents that should be submitted.
- FIR certified copy along with police inquest report is foremost important.
- The identify the cause of death, a post-mortem report is required.
- Panchama photocopy along with final verdict passed by Sub-divisional magistrate
- Cuttings of the newspaper if applicable as evidence of the accident.
- A driver’s license is required if the insurer was the driver of the automobile at the time of the accident.
- If a death has occurred due to other factors than road accidents then, alternative documented proofs will be required. These proofs might include eye witness, affidavits by sevaks and government officials, or other evidence.
Frequently Asked Questions
- What are the potential benefits of Accidental Benefit Rider?
The Accident Benefit Rider helps in covering individuals under accidents that might be serious and stressful. The rider’s policy helps help the family to cope up with the crisis in a controlled manner.
- Can I take a loan on the premium paid on Accidental Benefit Rider?
LIC has created no provisions for taking loans on the Accidental Benefit Rider plan.
- How much grace period is provided to the rider scheme?
The grace period is the same as the base plan. Generally, all insurance policies under LIC have a monthly grace period of 15 days which might vary to 30 days in case of yearly, quarterly, and half-yearly payments.
- Can I surrender my rider plan?
Since there are no paid-up, no surrender option is available. If the policyholder wishes to surrender the insurance policy which has the rider added with it then added premiums are returned.
- What are minimum and maximum ages?
The minimum age is 18 years while the maximum is 65. Also, 70-year-old will not receive any accidental benefits.
- If I surrender my base plan, will I receive premiums paid for the rider?
Yes, If the insurer returns the base policy, additional paid premiums are returned.
- Am I eligible for rider benefits other than road accidents?
Yes, affidavits, statement witness, or other documented proofs are required for claiming accidental benefit rider.
- Will I receive benefits if death due to accidents occur after 180 days?
No, the death must occur within 180 days with documented proofs.
- Can I avail the rider scheme without base plans?
The riders’ schemes are generally linked with base plans so they are not sold separately.
- Is the Accident Benefit Rider Expensive?
No, the premium rates are quite low and affordable.
11. What are the other policies of LIC?
Visit this page for other policies and details.