A term life insurance provides basic insurance coverage and pays out in case the policyholder dies during the term of the policy. Riders provide additional benefits to the term life insurance. They help in covering more unforeseen life situations such as accidents, critical illnesses, and others.
What is Accidental Death Benefit Rider
An accidental death benefit# rider(optional) is one of the most important riders. The major benefit of an accidental death benefit rider is that it gives an extra payout in case of death due to an accident. Accidental deaths are often accompanied by additional financial burdens and stress to your loved ones. It can be very useful useful for people who travel regularly by transport such as bikes where the safety factor is lesser than that of cars or buses. It is also one of the most affordable rider benefits to have. An accidental death benefit rider covers fatal accidents, wrongful death, homicides, airplane crashes, falls and fire-related injuries.
How does Accidental Death Benefit Rider work?
Any bodily injury that the policyholder sustains solely and directly from the accident, independent of other causes, that results in the death of the person within 180 days is deemed as a case of accidental death.
Let’s look at an example of how the accidental death benefit rider works. Mr. Sharma is a 35-year-old man with a spouse and a child. He has a life insurance policy of ₹ 50 lakh. He has added an Accidental Death Benefit Rider of ₹ 20 lakh to his insurance policy. Mr. Sharma faces a situation of accidental death. In this circumstance, when the family claims the death benefit, the amount would be ₹ 70 lakh. Without the rider, they would have received only ₹ 50 lakh.
Inclusions of Accidental Death Benefit Rider
Car or traffic accidentsDemise due to a car accident or other similar traffic incidents are covered under the accidental death benefit# rider
Airplane crashesDemise in an airplane crash is covered under the accidental death benefit# rider
FallsDemise due to an injury sustained in a fall is included in the accidental death benefit# rider
Firearm accidentsFirearm accidents leading to the unfortunate demise of the policyholder are covered under the accidental death benefit# rider
Fire injuriesInjuries sustained in a fire resulting in the unfortunate demise of the policyholder are included in the accidental death benefit# rider
Exclusions of Accidental Death Benefit Rider
There are a few cases that are excluded from accidental death benefit# claims. Death due to an accident should not be caused by the following:
- Attempted suicide or self-inflicted injuries while sane or insane, or whilst the Life Assured is under the influence of any narcotic substance or drug or intoxicating liquor except under the direction of a medical practitioner; or
- Engaging in aerial flights (including parachuting and skydiving) other than as a fare-paying passenger or crew on a licensed passenger-carrying commercial aircraft operating on a regular scheduled route; or
- The Life Assured with criminal intent, committing any breach of a law; or
- Due to war, whether declared or not or civil commotion; or
- Engaging in hazardous sports or pastimes, e.g. taking part in (or practising for) boxing, caving, climbing, horse racing, jet skiing, martial arts, mountaineering, off-piste skiing, pot holing, powerboat racing, underwater diving, yacht racing or any race, trial or timed motorsport.
Why Buy Accidental Death Benefit Rider?
Tax BenefitsThe premium paid towards a life insurance plan qualifies for a deduction as per The Income Tax Act,1961. Accidental death benefit# rider (optional) can be added for an additional charge to your base policy. You can claim a deduction for the premiums paid under Section 80C* of The Income Tax Act, 1961.
Minimal DocumentationBuying the accidental death benefit# rider is simple. You do not need any elaborate documents or complete additional formalities. You can simply purchase the rider along with the life insurance policy by filling an application form.
Enhanced ProtectionRiders like the accidental death benefit# enhance your plan’s coverage by offering you an additional layer of protection. They help in diverse situations and offer the necessary financial support to your loved ones.
Documents Required for Accidental Death Benefit Rider Claim
Here is the list of documents needed to file an insurance claim under the accidental death benefit# rider:
Policy documents (Original)Below are a few policy-related documents that must be submitted to the insurance company.
Filled Claim FormThe policy’s beneficiary must fill and sign the claim settlement form and submit it to the insurance company in case of an unfortunate event.
Policyholder's Photo ID proof and current address proofThe beneficiary must submit proof like the policy owner's photo identity proof, address proof, and other relevant information.
Copy of death certificate issued by Local Municipal AuthorityThe claimant needs to submit a copy of death certificate of the insured issued the local municipal authority.
Canceled cheque/Copy of bank passbookThe insurance company would ask for the bank account details of the beneficiary. Make sure to submit the correct information, as this is where the claim settlement will be credited.
FIR/ Panchnama/ Inquest report (copy or original)A copy or the original First Information Report (FIR)/ Panchnama/ Inquest report must be submitted, reporting the accident responsible for the policy owner’s demise.
Driver’s License of the Life AssuredIn the case of a car or traffic accident, the beneficiary has to submit a copy of the policyholder’s driver’s license.
Post-mortem Report and chemical viscera report (copy or original)A post-mortem report of the accident citing the cause of demise should be submitted to the insurance company.
Apart from these above-mentioned documents, the insurer may ask you to submit other relevant documents if needed.
With ICICI Pru iProtect Smart Term Insurance plan, you can get a life cover` with a sum assured of up to ₹ 1 crore. You also have the option to increase the life cover` at important milestones of your life. Adding an accidental death benefit rider# (optional) can enhance the value of the term insurance policy. For instance, your family can get up to ₹ 2 crore in case of an unfortunate demise due to an accident#. This can help your family get through tough times of emotional and financial loss.
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# Accidental Death benefit (ADB) is up to ₹ 2 crores (subjected to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.
` Life cover is the benefit payable on the death of the Life Assured during the policy term.
* Tax benefits are subject to conditions prescribed under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.
ICICI Pru iProtect Smart UIN 105N151V07 (A Non-Linked Non-Par Life Individual pure risk premium product)