Standard personal accident plan on anvil with rider for education grant for children

A standard health insurance plan is on the anvil with optional covers like one-time educational grant for children if the insured dies or is permanently disabled.

Insurance Regulatory and Development Authority of India (IRDAI) said in draft guidelines on standard personal accident cover that this will be among the many benefits available on payment of additional premium.

This benefit is available to children enrolled in a full-time education course and applicable to those below 25 years of age.

To ensure that there is a standard personal accident cover with similar policy wordings and features, IRDAI said that it will mandate all general and health insurers to offer this product. This will have a one-year validity.

For death and permanent total disability, the entire sum insured will be paid out as claim. Here permanent total disability refers to loss of both eyes, physical separation of both hands and legs or one hand and one leg.

There will be 50 percent sum insured payable on loss of one hand, one foot, one eye or both ears.

The minimum sum insured permitted is Rs 2.5 lakh and maximum is Rs 1 crore. Individuals between 18-70 years can buy this standard policy. Pricing can be determined by insurers based on their underwriting principles.

Other optional covers that can be bought by paying additional premium include hospitalisation expense (upto 10 percent of base sum insured) and work replacement benefit of upto 1 percent of sum insured per week for upto 100 weeks. This work replacement benefit is for those individuals who cannot be employed due to accidental injuries.

Industry stakeholders have time till December 18 to present their views. Pos this, the guidelines will be finalised and insurers will be asked to launch their standard products.