Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products

Which of the following is a feature of a Personal Accident policy that distinguishes it from a health indemnity policy?

A Personal Accident policy pays a fixed, predetermined benefit on accidental death or disability, rather than reimbursing actual expenses as an indemnity health policy does. It covers accident-caused outcomes, not illness, and can include temporary total disablement benefits.

  1. AIt pays a fixed benefit for death or disability from accidents, not limited to actual expenses incurredCorrect
  2. BIt covers only hospitalisation expenses actually incurred
  3. CIt covers illness arising from pre-existing diseases
  4. DIt cannot include a temporary total disablement benefit

Explanation

Personal accident covers are benefit-based: they pay a predetermined sum for accidental death or permanent disability, and may include temporary disablement benefits. Health indemnity reimburses actual expenses. Pre-existing disease is not an accident cover feature, and temporary total disablement can be included as an optional benefit.

Did you get it right without looking?

One question tells you little. A timed set on Non-Life Insurance Products shows your real accuracy, how long you take and where you lose marks.

Practise Non-Life Insurance ProductsFree diagnostic mock

More Non-Life Insurance Products questions