Certainly! Here’s a detailed explanation of Accidental Death Insurance, especially as an add-on/rider to a life insurance policy — a crucial protection for working individuals, business owners (like Jhonson Limited employees), drivers, or people in physically risky jobs.
⚠️ Accidental Death Insurance Rider – In Detail
✅ What Is Accidental Death Insurance (ADI)?
Accidental Death Insurance is a rider (add-on) to a base life insurance policy that provides an additional payout to the nominee if the insured dies due to an accident.
It does not replace life insurance but enhances it by offering extra protection specifically for accidental death.
🧾 Key Features
| Feature | Description |
|---|---|
| Type | Rider (add-on) to a base life insurance policy (term, endowment, ULIP, etc.) |
| Eligibility | Usually available for individuals aged 18–65 |
| Coverage | Death resulting directly and solely from an accident |
| Payout | Lump sum paid to nominee in addition to the base life cover |
| Premium | Low; fixed or marginal increase to base life insurance premium |
| Term | Same as the base policy or renewable annually |
🚑 What Qualifies as an “Accident”?
✅ Covered:
- Road accidents (car, bike, public transport)
- Falls, drowning
- Workplace accidents
- Fire or explosion injuries
- Natural calamities (e.g., building collapse)
- Homicide (in most cases)
❌ Not Covered:
- Death due to illness or natural causes (covered under base life policy)
- Suicide or self-inflicted injury
- Death while under influence of alcohol/drugs
- Participation in illegal or dangerous activities (e.g., racing, war)
- Pre-existing physical or mental disorders leading to injury
💸 How Does the Payout Work?
Let’s say:
- You have a Term Life Insurance with a sum assured of MUR 1,000,000.
- You add an Accidental Death Rider with an additional MUR 500,000 cover.
If you die due to an illness:
➡️ Nominee receives MUR 1,000,000.
If you die due to a road accident:
➡️ Nominee receives MUR 1,000,000 (life) + MUR 500,000 (accident) = MUR 1.5 million.
👪 Who Should Get an Accidental Death Rider?
| Ideal For | Why |
|---|---|
| Working professionals | Extra protection for commuting or travel-related risks |
| Business owners or entrepreneurs | Financial security for dependents, especially in sole-proprietor setups |
| Drivers, laborers, construction workers | High physical exposure and occupational risks |
| People with dependents | Enhances base policy at a low cost |
| Young policyholders | Affordable way to increase coverage early on |
📊 Advantages
- ✅ Affordable: Low cost for high additional coverage
- ✅ Double Protection: Offers extra financial support in case of accident
- ✅ Easy to Add: Can be added to most life insurance plans
- ✅ Helps Families Recover: Useful if the insured was the main earner
🛑 Limitations & Conditions
| Limitation | Explanation |
|---|---|
| Only covers accidental death | Does not cover natural death or disease |
| Specific definition of “accident” | Must be sudden, violent, and external |
| Exclusions apply | Alcohol, drugs, suicide, and dangerous activities often excluded |
| Rider ends with base policy | Cannot be carried separately if base policy ends |
🏢 Accidental Death Rider in Mauritius
Offered by major insurers such as:
- SICOM Ltd
- Mauritius Union Assurance (MUA)
- Swan Life
- Metropolitan Life
- Quantum Insurance
These are often bundled with:
- Term Life Insurance
- Group Life Policies (e.g., for companies like Jhonson Limited)
- Child Education Plans (to ensure education goals are funded even after accidental death)
📍 Example – Jhonson Limited Staff Member
| Detail | Value |
|---|---|
| Base Life Cover | MUR 1,000,000 |
| Accidental Death Rider | MUR 500,000 |
| Annual Premium (Est.) | + MUR 400–1,000 depending on age and insurer |
| Total Death Payout (Accident) | MUR 1.5 million |
📝 Documents Typically Required
- Rider application (attached to life policy proposal)
- Proof of identity and medical history (if required)
- Beneficiary details
🧮 Want Help With:
- Estimating the premium for your age/income?
- Adding this rider to an existing or new life policy?
- Comparing accident-only policies vs riders?
Let me know your insurance goals and I can help you create a suitable protection plan.