Do MSME Insurance Policies Cover Worldwide Accidental Bodily Injury?

MSME insurance policies are designed to protect Micro, Small and Medium-sized Enterprises (MSMEs) from different types of risks that can cause them financial damage. These policies usually cover a wide range of events and incidents, from property damage and robbery/ burglary to plate glass and breakdown of office equipment.* One major aspect covered by MSME insurance products such as the Bharat Laghu Udyam Suraksha policy is personal accident cover. Here, if the insured suffers an injury, the insurer pays a certain pre-decided amount as listed in the policy wordings.* Claims are subject to terms and conditions set forth under commercial insurance policy. In most MSME insurance plans, the accidental bodily injury cover is applicable worldwide. Let’s learn more about the same.

Understanding Worldwide Coverage for Accidental Bodily Injury

As per the personal accident cover in MSME insurance plans, if the insured suffers accidental bodily injury anywhere globally during the policy period, the insurance company will make payment. The payment depends on the type of injury/unfortunate event sustained by the insured. The following points list out the different situations under which the accidental bodily injury cover is applicable worldwide and the payment conditions:

a. Demise of the insured*

The insurer shall pay the sum assured amount if an accidental injury anywhere in the world causes the insured's demise within 12 months (of the accidental injury).

b. Permanent Total Disability*

If the accidental injury results in permanent total disability within 12 months of its occurrence, the insurer shall pay 125% of the sum assured.

c. Permanent Partial Disability*

The insurer will be liable to pay a percentage of the sum assured amount if the insured suffers a permanent partial disability within 12 months. The payment can differ based on the kind of disability incurred by the insured, as explained in the table below.  

Nature of Disability	Amount Payable
An arm at the shoulder joint	70%
An arm above the elbow joint	65%
An arm beneath the elbow joint	60%
A hand at the wrist	55%
A thumb	20%
An index finger	10%
Any other finger	5%
A leg above mid-thigh	70%
A leg up to mid-thigh	60%
A leg up to beneath the knee	50%
A leg up to mid-calf	45%
A foot at the ankle	40%
A large toe	5%
Any other toe	2%
An eye	50%
Hearing of one ear	30%
Hearing of both ears	75%
Sense of smell	10%
Sense of taste	5%

d. Temporary Total Disability*

Under this coverage aspect, the insurer can provide a weekly payment (up to 100 weeks) if the injury causes complete inability to work. The weekly payment is limited to 1% of the sum assured or Rs 5000, whichever is lower.

e. Additional Insurance*

In addition to the above, one can also benefit from additional insurance coverage with the Bharat Laghu Udyam Suraksha policy and other MSME insurance products.

1. Transportation: With this optional cover, the insurer will pay for transporting remains or returning them home, in case of the insured’s demise.
2. Children’s Education Benefit - With this optional cover, the insurer provides a one-time payment for the education of up to two dependent children in case of death or permanent total disability.
3. Hospital Confinement Allowance (Optional) - If one opts for this cover, they can claim a daily allowance for medically required hospitalization, up to 30 days.
4. Medical Expenses Reimbursement (Optional) - The insurer reimburses 40% of the claim amount or Rs 5 lakhs (whichever is lower) for necessary medical expenses, only if a claim has been accepted under the a. to d. points mentioned above.

All of the above coverages are applicable worldwide. As with all general insurance plans, these covers are subject to terms, conditions, and exclusions. Claims are subject to terms and conditions set forth under commercial insurance policy.

Conditions Applicable for Worldwide Accidental Bodily Injury

There are two main conditions to keep in mind here: 1. The insured must inform the company within 30 days in case of a change in their occupation. Failure to do so can lead to the insurance coverage ceasing from the date the person has changed their occupation. In case of an accidental injury before reporting, the payment would be calculated based on the premium that the new occupation would have had. 2. One can benefit from a cumulative bonus, i.e., a 10% annual increase in the Limit of Indemnity if the personal accident coverage is renewed without any claims for a year. The maximum increase for cumulative bonus is 50% over 5 years. This doesn't change the annual nature of the insurance, and the insurer can decline the renewal or cancel the policy. Along with the above, special exclusions also apply, which you can understand in detail by reading the policy document. Thus, most MSME insurance plans like the Bharat Laghu Udyam Suraksha policy do cover worldwide accidental bodily injury. One must remember to keep the conditions in mind and read the policy document thoroughly.   *Standard T&C apply. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.