Coverage for accidental medical expenses is one of the key add-on benefits in the Group Personal Accident policy. Most accidents lead to medical expenses incurred by the employee on first aid or treatment. Therefore, coverage of accidental medical expenses in the Group Personal Accident policy provides reimbursement for the above expenses.
It is important to note that this benefit is an add-on benefit and not a prime benefit. Hence, this benefit does not trigger on a stand-alone basis.
It is triggered only if one of the below four prime benefits is triggered :
- Accidental Death (AD)
- Permanent Total Disability (PTD)
- Permanent Partial Disability (PPD)
- Temporary Total Disability (TTD)
Insurers allow clients to choose multiple limits for accidental medical expenses add-on to the GPA policy. The default coverage limit offered by insurers is :
10% of the Sum Insured or 40% of the Admissible Claim Amount or Actual Medical Expenses whichever is lower.
The admissible claim amount is the amount payable under any of the 4 prime policy benefits – AD, PTD, PPD, or TTD.
Let us illustrate the claim payable under accidental medical expenses benefit through an example. So, suppose an employee meets with an accident and gets hospitalized for 3 days for treatment. He/she incurs hospitalization expenses of INR 1,00,000. Upon discharge from the hospital, advised him 2-week bed rest by the doctor. He follows the doctor’s advice and takes rests for 2 weeks. His absence from work due to accidental injury triggers TTD’s claim. Suppose that his TTD claim amount is INR 50,000. Then as per the condition for coverage mentioned above claim payable under the accidental medical expenses section will be INR 20,000 i.e. 40% of the admissible claim amount which is the TTD claim amount in this example.
The default medical expenses extension covers IPD i.e. hospitalization claims only. Insurers do give coverage for OPD claims upon clients’ request but they regulate claim outgo by restricting each OPD claim with an upper limit, typically under INR 25K limits per OPD claim.
Below are the few limits offered by insurers on accidental medical expenses –
- 10% of the Sum Insured or 40% of the Admissible Claim Amount or Actual Medical Expenses whichever is lower (Default)
- 20% of the Sum Insured or 40% of the Admissible Claim Amount or Actual Medical Expenses whichever is lower (Higher)
- 10% of the Sum Insured or 25% of the Admissible Claim Amount or Actual Medical Expenses whichever is lower (Lower)
Few insurers offer fixed benefit limits for accidental medical expenses (For Example – INR 2,00,000 per claim) wherein they do not link the medical expenses benefit with AD, PTD, PPD, or TTD.
So, you can choose from the above options to cover medical expenses in your group’s personal accident policy.