Accidental death and dismemberment insurance (AD&D) as the name suggests, covers accidental death and dismemberment. This additional rider comes along with the life insurance policy and the health insurance policy. It pays you or your beneficiary in case of death by accident and dismemberment. The loss includes the loss of any of your body parts or the capability to use them. The body parts included in the coverage are limbs, speech, eyesight, and hearing.
AD&D rider is also known as the double indemnity rider, which comes with strict terms and conditions and limited coverage. Also, to add this coverage you need to pay double the amount that is otherwise payable.
A schedule of payment specifies the percentage of the amount payable in different circumstances. Also, AD&D Insurance specifies the circumstances that the policy doesn’t cover. Generally, it doesn’t cover suicide and death due to an overdose of non-prescribed drugs. It also excludes the death of a professional athlete on the racing track and loss of body parts/death due to skydiving and other risky sports.
Click here to know what is covered under group personal accident Insurance
Case for Accidental Death & Dismemberment Insurance
Harsh Chauhan, an engineer, works for an engineering firm as the chief architect and designer. While his job gives him rather a safe environment to work in, he had bought an AD&D rider along with his life policy at the insistence of his insurance advisor.
Last month, while returning home from the office, he met with a very unexpected accident late at night. Though there was irreparable damage to his car, miraculously he survived, with minor scratches. To his amazement, he had suffered a concussion in his right ear and lost his eyesight for a few weeks in the right eye.
He called his advisor to personally thank him for insisting on AD&D cover for him as, without it, he would have had to bear the treatment expenses for the eye himself. His hearing damage is permanent but fortunately, he did not have to spend money on a hearing aid due to the compensation received from the insurer.
