Disability Cover

How to define an accident under this Cover?

An accident is defined as a sudden, involuntary and unforeseen event caused by external, visible and violent means.

How to avail the Disability Benefit Cover?

An insurance holder can avail LIC’s Accident Death and Disability Benefit Cover by paying an additional premium. LIC’s Accident Death and Disability Benefit Cover can be availed by any policy holder of an in-force policy by paying the additional premium with the premium paying period of the base plan, provided that the payment period of premium of the base plan.

Irrespective of when the policy holder availed the Death and Disability Benefit Cover, as long as it is well within the premium paying period, he or she is entitled to all the benefits of the Cover policy. The policy holder can avail all the benefits, given that the policy is active and in force on the date of the accident. Although, once all the premiums of the policy are paid, the additional premiums need not be paid.

The Maximum limit assured under any policy, in any case, should not exceed Rs. 100 lakhs of Accident Benefit sum. This includes policies with in-built Accident Benefit from LIC of India under both individual policies and also group policies taken on a single life.

What are the benefits of LIC’s Accident Death and Disability Benefit Cover?

If the policy holder has had to meet an unfortunate accident at any point when the policy is active for the full sum assured and if such an injury directly or indirectly permanent and total disability or death of the policy holder, some proof should be submitted for the satisfaction of the corporation. This is done so to convince the Corporation to

• • Pay extra amount that is equivalent to the sum assured that is to be split and paid in equal instalments every month to help the victim support his/her family with monetary support for a period of 10 years under the declaration of the policy. In case the proceeds or the assured sum is claimed due to death or maturity before the policy expires, that is within the completion of 10 years, the entire disability cover instalments which were not yet paid will be paid in full along with the claim.
• This step is automatically followed by the waiving of premium payment further in future but the payment of premiums for other Covers, if any, will continue.

How to assess a policy holder if her is permanently disabled or not?

The policy holder will be eligible to all the benefits of the Cover only when the disability occurred to the life insured is the result of an accident which had caused permanent disability. The policy holder will be considered or treated as permanently disabled when he is unable to carry out any four of the below-mentioned activities as a result of accidents and the disability should have been caused by the accident within 180 days from the date of happening. A medical examiner from the Corporation will determine if the policy holder is permanently disabled or not depending on whether he is able to perform these activities without external or medical support.

• Feeding
  If the person has the ability to consume food from the bowl or the plate to the mouth without anybody’s help.
• Transferring
  If the person has the ability to move from a chair to a bed or from a bed to the wheel chair.
• Mobility
  If the person has the ability of the person to move or walk within the house from one room to another.


• Dressing
  If the person has the ability to put on and take off his clothes without anybody’s help and also use medications and surgical appliances if necessary.
• Washing
  If the person is able to maintain a hygienic environment around him/her.

If the life insured has sustained injuries from an accident but doesn’t comply with the above- mentioned list but still has lost entire sight of both eyes or amputation of both hands or both feet shall also be considered a disability.

Case Study

If a person has availed an insurance policy that is worth Rs. 100 lakhs as Disability Benefit Cover, the policy holder is entitled to claim his benefit when

• He/she has suffered Total Permanent Disability as a result of an accident
• Rs. 83,333 will paid every month for his expenses for the next 10 years. The monthly instalment is arrived at this amount by dividing the total worth of the policy (Rs. 100 lakhs) by 120 months.
• Once the insurance holder has suffered total permanent disability and has claimed disability benefit, he/she will still get the full cover amount (Rs. 100 lakhs along with bonus) when the policy matures.
• The most important feature of this cover is that the premium for the disability cover need not be paid after the insurance holder has suffered total permanent disability due to an accident.