Personal Accident Insurance
- Insurence Policy:
Insurance Policy is an evidence of insurance contract. This insurance contract is made between the Insured/Policy-holder and Insurance Company. Subject to the terms & conditions of the policy, the insurance company provides compensation to the Insured/Policyholder for accidental death/bodily injury. Insurance Company provides this insurance coverage in exchange of money which is called ‘premium’ for certain period; usually one (01) year.
- Personal Accident Insurance:
Personal accident insurance is an insurance where the insurer promises to provide a certain benefits to the insured person in case of accidental death/ injury.
Main features of the Personal Accident Insurance are:
- It is an annual contract (One year).
- Premium rate is relatively low.
- The insured is free to choose sum insured which may start from Tk. 50,000.00 to Tk. 1.00 crore.
- Selection of sum insured should be consistent with insured person’s income/ life style.
- In case of accidental death, total Sum Insured is paid and for other injuries or loss of limbs, compensation is paid as per certain benefit scale.
- In case of claim for death, death certificate is a most important document which is to be submitted to the insurance company along with other documents like post mortem report, police report & NID etc. and for injury, doctors certificate, hospital admission & discharge documents as well as other documents as needed by the insurer.
- Schedule of Benefits
If such bodily injury as aforesaid shall be the sole and direct cause of:
- Death(Total sum insured)….……………………………………………100%
- Permanent total disablement:
Total sum insured in accordance with the following Scale or percentages based on (A)
- 01
- Permanent total loss of sight of both eyes
- 100%
- 02
- Total loss or permanent total loss of use of two limbs
- 100%
- 03
- Total loss or permanent total loss of use of right arm
- 75%
- 04
- Total loss or permanent total loss of use of left arm
- 60%
- 05
- Total loss or permanent total loss of use of right forearm
- 65%
- 06
- Total loss or permanent total loss of use of left forearm
- 55%
- 07
- Total loss or permanent total loss of use of right hand
- 60%
- 08
- Total loss or permanent total loss of use of left hand
- 50%
- 09
- Total loss or permanent total loss of use of thigh
- 60%
- 10
- Total loss or permanent total loss of leg at or below the knee
- 50%
- 11
- Total loss or permanent total loss of use of foot
- 40%
- 12
- Permanent total loss of sight of the one eye
- 50%
- 13
- Permanent total deafness in two ears
- 50%
- 14
- Permanent total deafness in one ear
- 25%
- 15
- Total loss or permanent total loss of use of thumb on right hand
- 15%
- 16
- Total loss or permanent total loss of use of thumb on left hand
- 20%
- 17
- Total loss or permanent total loss of use of index finger on right hand
- 20%
- 18
- Total loss or permanent total loss of use of index finger on left hand
- 15%
- 19
- Total loss or permanent total loss of use of middle finger on right hand
- 12%
- 20
- Total loss or permanent total loss of use of middle finger on left hand
- 10%
- 21
- Total loss or permanent total loss of use of third (ring) finger on right hand
- 10%
- 22
- Total loss or permanent total loss of use of third (ring) finger on left hand
- 8%
- 23
- Total loss or permanent total loss of use of little finger on right hand
- 8%
- 24
- Total loss or permanent total loss of use of little finger on left hand
- 6%
- 25
- Total loss or permanent total loss of use of big toe
- 5%
- 26
- Total loss or permanent total loss of use of any other big toe
- 3%
- 27
- Permanent total disablement other than above
- (Compensation payable until the Sum Insured is reached: Tk. 5% annually).
- Temporary total disablement a weekly benefit of 0.60% per week for a period not exceeding 52 weeks.
- Cost of Insurance:
Cost of Insurance means the amount of money that the clients pay to buy their desired insurance. This cost of insurance includes Premium, VAT and Stamp Duty in common.
- Sample of premium calculation:
- Premium Rate:
Personal Accident Insurance Premium rate is depends on Insured Profession.
- Premium:
Sum Insured x Premium Rate xxxxx
(+) VAT (Premium x 15%) xxxxx
