Accidental Death And Disability Beneficiary Of LIC
Accidental death and disability are the most common possibilities in today’s fast paced life. Both of these accidents cause significant financial loss , so LIC offers an accidental death and disability benefit rider that includes both of these accidents. The rider pays a benefit in the event of an accident or death by the insurer during the policy. Here are the
Main Features of Rider –
- The ride can be taken with a basic policy at the time of purchase of the policy or at the time of the policy on any policy anniversary
- If the rider is purchased during the policy term , the remaining premium payment period should be at least 5 years and the insurer should not reach 70 years of age within such five years.
- The rider’s sum insured can be taken equal to the guaranteed amount of the basic policy
- With the purchase of LIC ‘s Jeevan Siromani plan , the maximum sum insured allowed for the ride is up to INR 1 crore , which increases to INR 2 crore.
Benefits paid by the rider
In case of accidental death,
if the insurer dies due to an accident during the policy term , the insurer’s sum insured will be paid with the death benefit of the basic policy.
In case of disability, if the insured suffers from gross and permanent disability due to the accident , the following benefits will be provided –
- The rider insurance amount will be paid in equal installments for a period of 10 years. If the policy term expires or the insured dies within 10 years of payment , the remaining installments will be paid in full with the maturity or death benefit payable under the scheme
- Future premiums of the policy will be waived but the plan will continue
Total and permanent disability occurs if the insurer fails to perform the following four functions of daily life –
- Put on and take off all his clothes
- Keep even the lowest level of personal hygiene
- Eat food from the serving plate
- Use the toilet
- Go even shorter distances inside the house
- Sit in a chair away from the bed or vice versa
If both of these benefits are to be paid for , the accident must be ‘ caused by external , violent and visible means as a sudden , unexpected and unwanted event ‘ and death or disability must occur within 180 days of the accident .
Exemptions under LIC’s Death and Disability Assistance Rider
Death or disability caused by the following events will not be covered by the rider and rider benefits will not be provided in such circumstances –
- If the injury occurs spontaneously
- Suicide attempt has taken place.
- The accident was caused by some mental imbalance due to insanity or intoxication such as alcohol , drugs or narcotics.
- The insured has participated in adventure sports such as riots , civil unrest , declared or undeclared war or paragliding , bungee-jumping , river rafting , mountaineering , and racing.
- He was involved in illegal activity with criminal intent such as robbery , theft or any other anti-social activity.
- If disability or death from service in the military has increased. However , the exemption is not valid if the insured person is not employed or is fighting a natural disaster in his or her country.
- D. in the event of disability or death due to involvement in police services
- If the insured dies 180 days after the accident
The benefits of surrender
The ride is , independently , not worth paying for or surrendering. However , if the rider surrenders the attached basic policy , the rider premium charged for continuing the cover will be refunded. If the basic policy is not a regular premium policy and a refund will be allowed according to the following calculations –
Under Section 80C of the Income Tax Act , premiums paid to the rider are tax deductible up to Rs1.5 lakh and the death benefit received is fully tax deductible under Section 10 .
Documents required to claim LIC accidental death and disability benefit
In the event of a claim under Ryder , the following documents must be submitted to receive the claim amount quickly and conveniently.
- Certified copies of FIR and police investigation report
- Copy of Panchanama
- Autopsy report of the insured
- Newspaper cutting showing accident report
- If the insurer has an accident while driving , the driver’s license
- Final Judgment of the Sub-Divisional Magistrate
- Treatment records if admitted to hospital after accident.
In the event of an accident other than the need for a police FIR , an eyewitness report , a doctor’s report , a confession from a Grama Sevakar or government officials may be required.