According to the policy contract of life insurance of AIA Berhad, Total and Permanent Disability or TPD means complete and continuous inability of an insured due to injury, sickness or disease to perform or engage in any gainful work, occupation or business for which he is reasonably qualified or fitted by knowledge, training or experience.
In order to determine whether the nature of an insured's disability is TPD, the disability must be uninterrupted for at least 6 months from its date of commencement except in cases of Presumptive Disability. In other words, the insured must wait for at least 6 months before he will be compensated by AIA Berhad in order to determine the nature of his disability unless the case is Presumptive Disability.
According to the policy contract of life insurance of AIA Berhad, Presumptive Disability means the occurrence of any one of the following:
- Total and irrecoverable loss of sight of both eyes.
- Severance of two limbs at or above wrist or ankle.
- Total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above the wrist or ankle.
If any one of the three cases above happens to an insured, he will be compensated immediately.
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You mentioned here... "to perform or engage in any gainful work, occupation or business for which he is reasonably qualified or fitted by knowledge, training or experience"...does this mean that those who retired or already a housewife is not covered??
ReplyDeleteA whole life insurance encompasses two benefits, i.e. Death Benefit and TPD Benefit. Policyholders from 4 weeks up to 100 years of age will be protected by Death Benefit. Whereas, for AIA Berhad, TPD Benefit is issued free to standard life for issue age below 56. If policyholders become totally and permanently disabled after age 16 and before age 60, they will be compensated by AIA Berhad. The policyholders do include retirees, housewives and full time students. A retiree may become totally and permanently disabled due to a critical illness even though he may not be working. A housewife may not be working but she does bear multiple responsibilities that can be translated into an economic value. There is a financial loss to her family if she is no longer around or becomes totally and permanently disabled. Retirees, housewives and full time students may not be working but it doesn’t mean that they have no risk at all.
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