What is the significance of the ‘double accident benefit’ in a life insurance policy?
Ranjan Sen, Kolkata
Double accident benefit in a life insurance policy denotes that in the event of the insured’s death due to an accident, the insurers commit to pay the legal heirs of the insured a sum equal to double the amount of sum assured. For example, if the sum assured under a policy is Rs 5 lakh and the policy has been issued with double accident benefit clause, in the event of the death of the life assured due to an accident, the amount payable to the legal heirs of the life assured will be Rs 10 lakh (double the amount of sum assured). In case of natural death, however, the legal heirs of the life insured will get only the sum assured, which is Rs 5 lakh.
