Natural vs Man-Made Accidents: What Term Insurance Pays For in India

Most people think that a term insurance policy will pay out if you die for any reason. That is mostly true, but things can get confusing when someone dies in an accident. Families often want to know if term insurance will pay for natural disasters, car accidents, industrial accidents, or other man-made events.

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It's important to know how term insurance handles both natural and man-made accidents, especially when you file a claim. In this article, let us understand what term insurance covers, what it doesn't cover, and how accidental death benefits work in real life.

What Is a Natural Accident?

Natural Accident is when someone dies because of natural forces and no one is directly involved. These things happen out of the blue, can't be stopped, and come from outside.

Natural disasters are:

Earthquakes
Floods and flashfloods
Cyclones and storms
Landslides
Strikes of lightning
Tsunamis

If the policyholder dies because of one of these natural disasters, the nominee will get the full amount of the term insurancepolicy in India. There is no special deduction or lower payout for deaths caused by natural disasters.

The claim is treated like any other death claim as long as the policy was still in effect and the premiums were paid.

What Are Man-Made Accidents?

People cause man-made accidents when they don't pay attention or when machines or factories break down. These are some of the most common reasons why people die by accident in India.

Some examples of accidents that people cause are:

Car, bike, or bus accidents on the road
Accidents with trains or planes
Accidents with fires or buildings falling down
Accidents in factories or industries
Death by electricity
Gas leaks or accidental poisoning

Deaths caused by such events are fully covered under term insurance policies. The insurer does not differentiate between a road accident and a natural calamity when paying the base sum assured.

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Is Death Due to an Accident Always Covered in Term Insurance?

In most ases, yes. Death due to an accident is covered under a standard life insurance policy.

Term insurance covers death due to any cause, including accidents, as long as:

The policy is active
Premiums are paid on time
There is no material non-disclosure
The death does not fall under policy exclusions

Whether the accident is caused by a road crash, a fall, electrocution, or a natural calamity, the base term insurance policy pays the full sum assured.

However, coverage does not mean there are no conditions. There are certain types of deaths that are not covered and can lead to claim rejection, such as suicide within the first policy year, self-inflicted injuries, or death during criminal activity. These exclusions are clearly mentioned in the policy document. So while accidental death is generally covered, it must fall within the policy’s defined terms.

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Does Term Insurance Treat Natural and Man-Made Accidents Differently?

No. From a coverage and payment point of view, term insurance does not differentiate between natural and man-made causes of death.

In case of death due to an accident, irrespective of the reason, the following amount is paid:

100% of the sum assured under the base term plan

The insurer primarily checks the following:

Whether the policy was in force at the time of death
Whether the premiums were paid on time
Whether there was any material non-disclosure
Whether the death is covered under the exclusions

The nature of the accident is not a factor in the payment of the claim.

Coverage and exclusions may differ across types of life insurance policies. That’s why while choosing a plan, go through the policy document to understand every clause.

How Accidental Death Benefit (ADB) change the Payout?

Many term life insurance plans offer an optional rider called the Accidental Death Benefit rider. If death is accidental, this rider adds to the payout.

This is how it works:

The basic term insurance plan pays the full amount in case of death.
The ADB rider pays extra money if someone dies by accident.

Key Points To Remember

It is important to know that the rider only covers deaths that happen by accident.
The rider doesn't apply if someone dies from an illness or a heart attack.
The amount of money the rider can receive depends on their age and the amount of insurance they have.

Accident-Related Exclusions:

While term insurance covers most accidental deaths, the following exclusions are not covered by most Indian insurers.

Term insurance does not pay if death occurs due to:

Suicide, typically within the first 12 months of policy issuance
Self-inflicted injuries
Death while committing a criminal act
Death under the influence of alcohol or drugs
Participation in dangerous activities not disclosed at the time of buying the policy

These exclusions apply regardless of whether the incident is classified as natural or man-made.

Are Deaths Due to Riots, Terrorism, or War Covered in Term Insurance?

Deaths due to riots, strikes, or civil unrest are usually covered under term insurance.
Deaths caused by terrorist attacks are usually covered in Indian term insurance policies.
Deaths resulting from war, invasion, or war-like operations are commonly excluded.

Claim Process for Accidental Deaths

The claim process for accidental deaths is similar to any other term insurance claim, but require additional documents, such as

Death certificate
Policy document
Claim form
FIR or police report (for accidents)
Post-mortem report, if applicable

Wrapping It Up:

In India, term insurance protects against both natural and accidental deaths and gives the family financial security. Whether the death is caused by a natural event or an accident, the nominee will receive the entire sum insured in the base term insurance policy. However, if an accidental death rider is also included, then the amount received by the nominee will be even higher in such circumstances. The claim will be rejected only in certain defined circumstances that are specified in the policy exclusions.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. ₹360/month is the starting price for a ₹99 lakhs loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

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Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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