Insurance pertaining to Life and Personal Accidents, Hospitalization

A relative is admitted to a Navi Mumbai hospital after a scooter accident. The family asks three questions in one breath. Will the life policy pay? Will the hospital bill be covered? Will the accident cover pay a lump sum for the injury? They sound like one question, but the law treats them as three kinds of insurance, with different definitions, different payouts and different rules. This topic is the map that tells you which is which.

In two minutes

The Insurance Act 1938 separates life insurance business (s.2(11)), general insurance business (s.2(6B)) and health insurance business (s.2(6C)), and personal accident cover and hospitalisation cover belong in the health class, not in life.

The rest of this chapter

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