LIC Accidental Death & Disability Benefit Rider
Rider UIN: 512B209V02 – (An Individual, Non-Linked, Life Rider)
This Rider Bridges the Gap
While your basic life insurance covers death, this rider adds a layer of protection specifically against accidental death or permanent disability, ensuring:
- The “Accident Benefit Sum Assured” is disbursed in the event of an accident-related death (within 180 days).
- Benefits are paid in equal monthly installments over a ten-year period in the event of a total and permanent disability resulting from an accident, and future premiums are waived (for the portion of the rider cover).
- The nominee receives the remaining installments even if the base plan dies or matures before all of the payments are made.
Thus, your family gets continuity of support.
Key Benefits at a Glance
| Feature | Benefit to You / Your Family |
|---|---|
| Low Cost | For regular premium plans: just ₹1 per ₹1,000 sum assured (plus higher rates if in police duty) |
| Flexible Terms | Available under regular, limited, or single premium plans |
| Cover Till Age 70 | Cover lasts to policy anniversary nearest to age 70 or full policy term, whichever earlier |
| Disability Definition | Covers total & permanent disability defined via loss of 4 out of 6 Activities of Daily Living (ADL) |
| Future Premium Waiver | For the portion of the rider assurance, premium payments are waived if disability claim arises |
| No Surrender Value | No cash surrender value under this rider alone (but under base plan surrender a proportion may be refunded) |
Eligibility, Exclusions & Important Details
Who Can Opt In?
- Entry age: 18 years and above
- Last age for cover: up to the policy anniversary when nearest birthday is 70 years
- Must be attached as a rider (add-on) to a base LIC policy for which riders are allowed
- Minimum sum assured under rider: ₹10,000
- Maximum aggregate coverage limits:
- For “Jeevan Shiromani” plus other policies: up to ₹200 lakhs in total.
- For other plans: up to ₹100 lakhs across all accidental benefit covers
Exclusions (what’s not covered)
The rider benefit will not be paid if death or disability results from:
- Intentional self-injury, suicide, insanity, or immorality.
- Taking part in riots, war, rebellious acts, hunting, mountaineering, aero-sports or risky/adventurous sports.
- While engaged in armed forces or military service (unless for off-duty accidents).
- After 180 days from the accident date.
- If influenced by intoxicants or narcotics (unless medically prescribed).
Also, note: no surrender value for the rider by itself.
Premium Rates & Pricing
- For regular premium policies: ₹1 per ₹1,000 sum assured per year.
- If the life assured is in police duty while opting for the rider: ₹1.50 per ₹1,000.
- For single premium and limited premium policies, sample rates vary by term (e.g. for 10, 20 or 30 years).
- Taxes or service charges are extra as per prevailing law.
Real-World Illustrative Scenarios
Scenario A — Accidental Death
Mr. Sharma (35 years) has a base LIC policy with ₹10 lakh sum assured, and opts for this rider with ₹5 lakh Accident Benefit Sum Assured. Suppose he meets with a fatal accident within policy term.
- His nominee gets ₹5 lakh as rider benefit.
- Plus, base policy death benefit as per LIC contract.
- Total protection offered to the family increases substantially beyond the base plan.
Scenario B — Total & Permanent Disability
Ms. Mehta, who is forty years old, has a base policy worth ₹20 lakh and a rider policy worth ₹5 lakh. After a car accident, she loses the ability to perform several ADLs, rendering her completely and permanently disabled.
- The ₹5 lakh rider benefit is paid by LIC in 120 monthly installments, or ₹5,000 a month for ten years.
- She also doesn’t have to pay any additional money for that rider because future premiums for the rider portion are waived.
- The remaining 120 installments are paid to her or her nominee if her base plan matures or she passes away before all 120 installments are paid.
In the worst-case scenario, these examples show how the rider provides an additional layer of financial continuity.
Expert Opinions & Market Insight
“In emerging economies, accidental death and disability are under-insured risks. A low-cost rider like this helps fill protection gaps efficiently.”
— Dr. Nisha Prakash, Actuarial Consultant, Mumbai
Households frequently underestimate the likelihood of partial or complete disability, according to insurance analysts. Non-fatal accidents that result in disabilities cause lifelong financial strain, according to World Bank studies and Indian health surveys.
Furthermore, there is a genuine risk of accidents in areas like Delhi NCR due to high motorisation, urban traffic density, and fast travel. It makes sense for people with dependents to have an additional layer of accidental protection.
FAQs
If the base policy is surrendered, this rider goes away (no separate surrender value). However, a partial refund of the additional rider premium (for coverage beyond premium paying term) may be possible.
Yes — as long as you are within the entry age limits and before your policy anniversary when age turns 70.
No — benefit is paid in equal monthly instalments over 10 years. If policy matures or death occurs earlier, remaining instalments are paid in lump sum.
No. Future premiums for this rider portion are waived in event of disability. Other rider premiums continue unaffected.
Aggregate accidental benefit limit is ₹100 lakhs (or ₹200 lakhs in certain cases with Jeevan Shiromani) across all your LIC policies.
Yes — but the premium rate is higher (₹1.50 per ₹1,000) if you opt this cover while engaged in police duty.
The disability or death must occur within 180 days of the accident to qualify.
Exclusions include self-harm, war, adventurous sports, intoxication, or if more than 180 days have passed.