What does ‘Double Accident Benefit’ mean in a life insurance policy?
Iqbal Singh, Chandigarh
On payment of some extra premium, most insurers offer to pay double the sum insured, if the insured dies in an accident. The benefit is popularly known as ‘Double Accident Benefit’. In order to be eligible for this benefit, the death must be caused directly and independently of all other causes, by an accidental bodily injury. Another condition that has to be met is that death must follow within a specified period of the injury, which is typically 90-180 days. Usually, the compensation due to this benefit is subject to an upper limit which is stated in the policy.
