facebook Saral Suraksha Bima – New Standardised Personal Accident Policy

Every general insurer to now offer standardised personal accident policy

Every general insurer to now offer standardised personal accident policy

The insurance regulator IRDAI has made it mandatory for every general insurer to offer a standardised personal accident policy by 1 April, 2021. The policy will be named Saral Suraksha Bima, succeeded by the name of the insurance company. It will be offered annually or (for a tenure of one year).

“With the objective of having a standard product with common coverage and policy wordings across the industry, the Authority has decided to mandate all general and health insurers to offer the standard personal accident insurance product,” said the insurance regulator IRDAI in its circular issued on 25th February 2021.

What the policy covers

  1. Death Benefit

The personal accident policy will offer a death benefit equal to 100% of Sum Insured, due to an Injury sustained in an Accident during the Policy Period.

  1. Permanent Total Disablement

Benefit equal to 100% of Sum Insured shall be payable if an insured Person suffers Permanent Total Disablement

  1. Permanent Partial Disablement

The policy will pay 50% of Sum insured in case of partial disablement.

The product will be offered on an individual basis. When the cover is offered for a family, the chosen sum insured will apply to each family member separately.

The minimum sum insured will be INR 2.5 lakh and the maximum sum insured shall be INR 1 crore. Sum insured offered shall be in multiples of INR 50,000.


Along with the base covers of Standard PA product, the policy will come with three optional covers. Temporary total disablement benefit and education grant covers (upto 10% of the Base Sum insured for dependent children) will be offered on a benefit-basis. However, the third optional cover — hospitalisation expenses due to accident — will be offered upto the limit of 10% of base sum insured.

The insurance regulator IRDAI said the sum insured will increase by 5 per cent each year for each claim-free policy year, provided the policy is renewed without a break.

This increase in coverage has been capped at 50 per cent of the basic sum insured.

If a claim is made in any particular year, the cumulative bonus accrued may be reduced at the same rate at which it has accrued, the regulator said.

Also read : Why it’s imperative to have a personal health insurance

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