NEW DELHI: The Insurance Regulatory and Development Authority of India (IRDAI) has issued directions to all general and health insurance companies that beginning April 1, 2021, they are to mandatorily offer a standard personal accident insurance policy. Named the Saral Suraksha Bima, the standard insurance cover will be offered with a tenure of one year.
The regulator last week released a set of guidelines for the insurance cover that companies are supposed to follow. The minimum entry age to buy the policy shall be 18 years and the maximum age set at 70 for all insured members, including the principal insured.
However, insurers are permitted to fix the maximum age at entry beyond 70 years, subject to their underwriting policy. The policy will also offer cover to dependent children from the age of three months to 25 years.
According to the guidelines, the standard product shall be offered on an individual basis. However, when offered as a family cover, the chosen sum insured will apply to each family member separately. The minimum sum insured shall be Rs 2.5 lakh and the maximum sum insured Rs 1 crore.
According to the IRDAI, beyond the range specified, insurers may also offer different amounts on their own and may even use the same name for the product if all other terms and conditions remain the same. The policy will come with three optional covers: temporary total disablement benefit; education grant; hospitalisation expenses.
The first two will be offered on a benefit-basis, but the third will be offered on an indemnity basis - where the claim is settled by the insurer paying an amount equal to the expenses sustained. Policy holders will need to make a claim within 30 days of such an event taking place.