Hello Harshal,

Personal Accident policies are fixed benefit policies - which means they pay lumpsum cash based on the type of disability and the sum assured against it. They do not pay you against actual expenses.

Most of these policies will cover only accidental death and permanent total disability (fully disabled to carry out daily routine or work) as per the terms and conditions of this policy. So for instance, one dies after an accident covered under the policy - the company will pay the entire sum assured without demanding proof of actual financial loss/expenses to the nominee of the person who was covered. In your case, the entire 27 Lakhs will be paid if the accident is covered under the policy.

You must read these two articles to get a better understanding of Accidental Disability Insurance:

1. The Underrated Risk of Disability and Personal Accident Insurance (beshak.org)
2. Comparison of Top Personal Accident Insurance Plans in India (beshak.org)

Do let us know if you have any questions.

Regards,

Team Beshak

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