Rs 3 lakh Personal Accident Coverage for Students?
However you look, you can never find life insurance in India for people under 18 years of age. The first rule in life insurance is that the policyholder must be over 18 years old to sign the contract.
The existing workaround was to insure the parents and then pass on the death benefit of the parent to their minor kids. The biggest issue with this type of life insurance is that it just protects the breadwinner and will not help the family if they lose their child due to unforeseen circumstances.
These days accidents, calamities, and terrorist activities are claiming the lives of innocent children and there is no direct insurance that covers them.
Today we have a new policy called a Personal Accident (PA) that could be taken for the kids. The only catch is, that the educational institute should sign it as the first party i.e. the management of schools or colleges.
I will Illustrate with an example. Suppose a school has 1500 students and wishes to cover each student with an accidental death benefit of Rs3,00,000 each. Then the final premium per kid (pre-tax) will be Rs110 per kid per year. For me, that’s really affordable.
Let me also walk you through the benefits
- Accidental Death
- Accidental Dismemberment & Paralysis
- Total disability
- Partial disability
- Act of Terrorism
- Accidental medical expenses of up to 50,000 in-patient per year.
- Accidental medical expenses of up to 14,000 out-patient per year.
The policy condition does not state that these need not happen at the school itself. Even if the event occurs outside of the educational institute — they still get the coverage.
Ideally, all schools and colleges should opt for this coverage. Primarily, the cost per student is very economical and secondly, they will be able to provide the grieving family a small financial assistance.
Schools & Colleges could decide to pass on this cost to the parents of the kids, I meant the cost of premiums. I am sure that the parents would not really mind paying Rs110 per year for this.
There is also an option to cover the staff of the educational institute, but that will have a significant impact on the premiums.
To know more, you can contact me @ balu@viswaram.com or @viswaram Instagram
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