LIC’s Accidental Death and Disability benefit rider cover both these contingencies. This rider benefit pays in situation of death or disability caused to the policyholder in an accident. Some of the salient features of this policy are as follows:
Features of LIC Accidental Death and Disability Benefit Rider
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Like any other rider, one has to purchase it as an add-on cover with a LIC life insurance policy by paying an extra premium.
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A policyholder can buy this rider at the time of policy inception or during the policy term at the time of the policy's anniversary.
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If one buys this rider during the policy term, the remaining term to pay the premiums must be at least five years. Moreover, the policyholder must not attain the age of 70 years in these five years.
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The sum assured of the rider can be the same as the sum assured of the base policy.
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The maximum sum assured for LIC Accidental Death and Disability Benefit rider allowed is Rs.1 Crore. However, this sum assured increases to Rs.2 Crore for LIC Jeevan Shiromani policy.
Benefits Offered by LIC Under Accidental Death and Disability Benefit Rider
Some of the benefits offered by LIC under Accidental Death and Disability rider are:
To avail the benefits of this rider, the accident must have to be sudden, involuntary, and unforeseen. It must be caused by some external visible and violent means. Moreover, death and disability should occur within 180 days of the accident.
Exclusions of LIC Accidental Death and Disability Benefit Rider
LIC will not pay the benefits offered by Accidental Death and Disability rider in the following situations:
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In case of self-inflicted injury.
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If it is an attempted suicide.
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If the accident occurred under the influence of alcohol or other intoxicating drugs.
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If the accident occurred because of the mental imbalance of the policyholder.
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If the accident occurred due to the involvement of the policyholder in some riots, undeclared or declared war, civil rebellion, etc.
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If the accident occurred due to the involvement of the policyholder in some adventurous activities like river rafting, bungee jumping, paragliding, racing, mountaineering, etc.
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If the accident occurred due to the involvement of the policyholder in some illegal act that is performed with some criminal intention like stealing, robbing, etc.
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If the death or disability occurred due to the Military service. However, the exclusion will be null and void if the policyholder was not in his/her duty or was caught up in some natural calamity in his/her country.
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If the death or disability occurred if the policyholder was engaged in police services.
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If the policyholder dies after 180 days of the accident.
Surrender Benefits Under LIC Accidental Death and Disability Benefit Rider
There is no surrender value or paid-up value involved in this rider benefit. However, if the policyholder has surrendered the base policy, the premium of the rider to continue the cover will be refunded. The refund would be calculated on the following bases:
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If it is a regular premium policy, then there will not be any refund.
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If it is a single premium paying plan, 90% of the single premium of the rider is paid.
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In case of a limited premium paying policy:
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If the policy is surrendered during the premium paying term, then:
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If the policy is surrendered after completion of the premium paying term, then:
Tax Benefits Under LIC Accidental Death and Disability Benefit Rider
The premiums that a policyholder has paid towards the rider benefit are tax deducted U/S 80C of the Income Tax Act. The death benefit that a policyholder receives is also fully exempted from tax U/S 10 (10D).
Documents Needed to Make a Claim for LIC Accidental Death and Disability Benefit Rider
In case a policyholder wants to claim the rider benefit, he/she has to provide the below mentioned documents:
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The certified copies of the Police FIR and inquiry
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Panchnama’s copy
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Policyholder’s post mortem report
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Cutting of newspaper wherein the report of the accident is shown
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Driver's license in case of accident through the car that is being driven by the policyholder at the time of the mishap
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The final verdict was given by the Sub-Divisional Magistrate
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Records of the treatment if the policyholder has undergone hospitalization after the occurrence of the accident
Wrapping Up!
If you are planning to add a rider to your base life insurance policy, you can consider buying it. For your understanding, we have mentioned some of the features, benefits, and details of the LIC Accidental Death and Disability benefit rider.