The IRDAI has issued draft guidelines on a standard personal accident insurance policy and directed that all general and standalone health insurers will have to offer this product from 1 April 2021.
The product, which is proposed to be offered on an individual basis, will have a minimum sum insured of INR250,000 ($3,400) and a maximum of INR10m, reported Press Trust of India.
The IRDAI proposes a payout equal to 100% of the sum insured in case of death or permanent total disablement because of an accident. For permanent partial disablement, the payout percentage will vary according to the type of disablement.
The cover for death and permanent total disablement will be mandatory in this standard product, but insurers can offer optional covers for temporary total disablement and education grant for dependent children.
The minimum and maximum age for buying the product is 18 years and 70 years, respectively. The policyholder can pay premiums yearly, half-yearly, quarterly, or monthly.
Insurance companies will have freedom in pricing the product.
The deadline for feedback on the proposed draft guidelines is 18 December.
This standard personal accident insurance policy proposed by the IRDAI follows the regulator’s introduction of standard products for health and term life insurance.