Accidental Loss

September 29, 2009

When a loss occurs suddenly, without warning and totally unexpected, which is beyond ones control to prevent or stop it, is called an Accidental Loss. In the field of Insurance, Accidental Loss has separate clauses attached for it, in different types of policies. An insurance policy will usually pay an amount depending on the intensity and extent of the accidental loss.


Accidental loss can occur in a road accident or while working in a factory and so on. A person loosing money in the stock market cannot be termed as an accidental losss, as investing in the stock market is risk oriented, and there is nothing unexpected about the loss.

In certain life insurance policies, in the event of death of the insured due to an accident, the insurance company will usually pay double the sum assured. This is so because there is a low probability of a person dying from an accident, and hence such loss has more indemnity. Also if there is permanent damage to the person, in an accident, which renders him incapable of work, then also the full amount of the sum assured in paid.


There are also separate policies for Accidental loss, and the compensation will depend on the extent of loss. If there is loss of life or permanent disability full principal sum is paid. In case of loss of a single limb, half of the principal sum gets paid and so on.

Accidental loss can be minimized to a great extent by taking a proper, auto insurance. Auto accidents are becoming more common, and they lead to high medical expenses and even cost of litigations. The cost of medical treatment is becoming prohibitive, and to pay hospital bills after an accident is almost out of reach for many people. Once you are covered by auto insurance a major amount of the hospital and medical bills are taken care of. Also all members of your family can be included in the policy.


Accidental loss can accrue in the form of legal expenses as well. In an accident you might get sued by a third party, and the cost of fighting a legal battle is also very expensive. For a little more premium on your auto insurance, you can get coverage for legal claims as well. In such a case you just need to file in your claim and the insurance company takes care of the expenses in fighting a case.

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Written by Uncle Sam · Filed Under Insurance 

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