Accidental damage

In the absence of a precise policy definition, the term will be interpreted as common English language usage. Accidental damage is typically defined as “unintended and unexpected damage caused by sudden and external means, subject to certain exceptions, such as electrical and mechanical derangement, inherent vice, and action of insects, moths, vermin, and the like.” ‘Visible damage not caused on purpose’ is a common phrase, subject to exclusions to put certain matters beyond doubt. ‘Damage’ includes accidental destruction but not necessarily ‘accidental loss,’ though where the loss is of an integral part of an item, such as couch covers, the resulting ‘impairment’ is likely to be regarded as ‘accidental damage.

Accidental damage cover

Coverage provided by a household or commercial policy that includes all of the benefits of a standard named peril policy as well as accidental damage coverage, such as spilling paint on a rug or laptop. A loss must be matched to a named peril under a named peril policy.

Accidental damage excess

An alternative term for excessive damage. It is the excess in the loss or damage section of comprehensive motor policies and applies only to claims involving the insured vehicle’s loss or damage. In the case of loss or damage caused by fire or theft, the excess is waived. All auto policies include an accidental damage excess for young and inexperienced drivers.

Accidental damage to property

A liability policy considers damage to be accidental if it is unexpected and unintended from the standpoint of the insured. Property refers to’material property’ rather than property or intellectual property rights. See accidental damage for first-party coverage.

Accidental Death

Short Definition: Insured’s death as a result of an accident.

Long Definition: As an insured event under personal accident insurance, it is defined as “death caused by violent, accidental, external, and visible means that shall solely and independently result in death occurring within 12 months.” The time limit is arbitrary, but the longer the period between the injury and subsequent death, the more likely an intervening cause will be. If the accidental death is caused by an accepted risk, the insurer makes no payment.

Accidental Death and Dismemberment (AD&D)

Short Description: Policy that pays out in the event of the insured’s death as a result of an accident or incapacitating bodily injury.

Long Description: Typically, this coverage is written in conjunction with group life insurance contracts. The accidental death portion provides double indemnity coverage if death is caused by an accident, and the dismemberment portion provides benefits for the loss of a specific body part (e.g., eye, hand, leg). For example, if a member of the group dies of natural causes, the group life contract may provide £100,000 in coverage. If the death was caused by an accident, the benefit is £200,000. If an accident causes the loss of an arm rather than death, the benefit could be £50,000. Some AD&D riders pay half the benefit amount if the insured loses a limb or vision in one eye.

Accidental death and dismemberment (ADD) coverage

An insurance benefit providing coverage in the event of accidental loss of life, limb, or eyesight, offered as a supplementary benefit to a group term life insurance plan.

Accidental Death Benefit

Short Description: A lump sum payment made in the event of the death of an insured person as a direct result of an accident.

Long Description: A monetary compensation equal to the sum of the capital sum insured plus the sum of the accumulated cumulated benefit. In addition to the capital sum insured under the policy, certain other benefits are payable, such as funeral and transportation of the deceased, education fund for dependent children, and medical expenses incurred as a result of the accident, subject to the terms, conditions, and limitations of the Policy provision. Also, a provision added to a life insurance policy that provides for the payment of an additional benefit in the event of accidental death; this is commonly referred to as “double indemnity”. If the benefit is more than twice the principal sum, it is known as “multiple indemnity.”

Accidental death benefit (ADB) rider

A supplementary benefit provision that pays an additional lump-sum amount, beyond the basic death benefit of a life insurance policy, only if the insured’s death results from an accident. This provision is commonly known as “double indemnity” when the extra payout equals the original face amount of the policy.

Accidental Dismemberment Benefits

A provision in a personal accident policy that pays either a specified lump sum or a multiple of the weekly disability benefit if the insured loses their sight or two limbs due to an accident. A smaller amount is payable for the loss of one eye, arm, leg, hand, or foot.