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

Which of the following is a standard feature of a personal accident policy that distinguishes it from a standard indemnity health policy?

A personal accident policy pays a fixed, predetermined benefit for accidental death or disability irrespective of actual medical expenses, whereas a health indemnity policy reimburses actual hospital costs. It covers accidents specifically, not all illnesses.

  1. AIt pays a fixed benefit for death or disability from an accident, regardless of actual medical expensesCorrect
  2. BIt reimburses only hospital bills incurred over 24 hours
  3. CIt covers all illnesses without any exclusion
  4. DIt pays only if the insured is aged over 60

Explanation

Personal accident policies are benefit-based, paying predetermined amounts for accidental death or permanent disability. Health indemnity policies reimburse actual expenses. PA policies do not cover all illnesses and carry no age-60 minimum condition.

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