LIC's Accidental Death Benefit Rider

Accidental Death Benefit Rider

LIC’s Linked Accidental Death Benefit Rider is a unit-linked rider which provides for financial compensation in case of unfortunate event of an accident leading to death of the insured.

This rider will be offered as an add-on benefit to a basic linked plan.

1. Benefits:

If the Life assured is involved in an accident, which is defined as “a sudden, unforeseen and involuntary event caused by external, visible and violent means”, leading to death and such incident shall occur within 180 days from the date of accident then the Accident Benefit Sum Assured shall be payable. However, under this rider there is no Maturity Value payable. Also, the policy shall have to be in force at the time of accident irrespective of whether or not it is in force at the time of death.

2. Eligibility Conditions and Other Restrictions:

Minimum Sum Assured	: ₹10000/-
Minimum age at entry	: 18 years (completed)
Maximum age at entry	: Cover can be opted at any policy anniversary during the policy term but before the policy anniversary on which the age nearest birthday of the Life Assured is 65 years.
Maximum maturity age	: 70 years (nearest birthday)
Policy term :	The policy term shall be equal to (70-age at entry) years, or policy term under the basic plan, whichever is less. However, in any case the minimum term shall not be less than 5 years.
This rider can be opted at any time during the term of the policy or at the time of commencement of the policy.

Maximum Sum Assured :

The maximum aggregate limit of Accident Benefit cover shall be as under:

• For LIC’s Jeevan Shiromani with minimum Basic Sum Assured of ₹100 lakhs:

  The maximum aggregate limit of assurance under all policies including policies with in-built Accident Benefit taken with Life Insurance Corporation of India under individual policies as well as group policies on the same life to which following benefits apply shall not in any event exceed ₹200 lakhs of Accident Benefit Sum Assured (including LIC’s Jeevan Shiromani). If there be more policies than one and if the total Accident Benefit Sum Assured exceeds ₹200 lakhs (including a minimum of 100 lakhs under LIC’s Jeevan Shiromani) the benefits shall apply to the first ₹200 lakhs Accident Benefit Sum Assured in order of date of policies issued.

• For all other plans (excluding LIC’s Jeevan Shiromani):

  The maximum aggregate limit of assurance under all policies including policies with in-built Accident Benefit taken with Life Insurance Corporation of India under individual policies as well as group policies on the same life to which following benefits apply shall not in any event exceed ₹100 lakhs of Accident Benefit Sum Assured. If there be more policies than one and if the total Accident Benefit Sum Assured exceeds ₹100 lakhs, the benefits shall apply to the first ₹100 lakhs Accident Benefit Sum Assured in order of date of policies issued.

In any case, the maximum Accident Benefit cover offered to an individual including the policies taken under (A) above, will not exceed ₹200 lakhs.

3. Accident Benefit Charge:

It is the cost of linked Accidental Death Benefit rider (if opted for) and will be levied every month at the rate of ₹0.40 per thousand Accident Benefit Sum Assured per policy year by cancelling proportionate number of units out of policyholders fund value.

However, if the Life Assured is engaged in police duty in any police organization other than paramilitary forces and opts for this cover while engaged in police duty, then the level Accident Benefit Charge at the rate of ₹0.80 per thousand Accident Benefit Sum Assured per policy year shall be levied. If the Life Assured does not choose the option for this cover while engaging in police duty, then the rate of ₹0.40 per thousand Accident Benefit Sum Assured shall remain.

4. Paid-up Value:

The rider shall not acquire any paid-up value.

5. Surrender Value:

No Surrender Value will be available under this rider.

6. Revival:

The rider can be revived along with the revival of the Basic Policy and not in isolation.

7. Taxes:

Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax as per the prevailing rates shall be levied on the Accident Benefit Charge and will be deducted every month by cancelling proportionate number of units out of the Policyholder’s Fund Value.

8. Cooling-off period:

Same as under the basic plan.

9. Exclusion:

The Corporation will not be liable to pay the Accident Benefit Sum Assured, if the death of the Life Assured shall:

• be caused by intentional self injury, attempted suicide, insanity or immorality or whilst the Life Assured is under the influence or consumption of intoxicating liquor, drug or narcotic (unless prescribed by doctor as a part of treatment); or

• be caused by injuries resulting from taking any part in riots, civil commotion, rebellion, war (whether war be declared or not), invasion, hunting, mountaineering, steeple chasing, racing of any kind, paragliding or parachuting, taking part in adventurous sports; or

• result from the Life Assured committing any breach of law with criminal intent; or

• • arise from employment of the Life Assured in the armed forces or military service. This exclusion is not applicable if the Life Assured was involved in an accident when he is not on duty or was involved in any rescue operations while combating natural calamities in our country

  • arise from being engaged in police duty (which excludes administrative assignments) in any police organization other than paramilitary forces. This exclusion is not applicable where the option to cover Accidental Death Benefit arising on accident while engaged in police duty, has been chosen; or

• occur after 180 days from the date of accident of the Life Assured.