Insurance companies offer the Accidental Disability/Dismemberment Benefit rider in addition to the life insurance cover to provide against disabilities arising from accidents. In the event of total and permanent disability during the term of the policy due to an accident (within a specified period from the date of accident), an amount equal to or less than the rider sum assured is be paid to the insured.

Payout terms and conditions vary from company to company.

For example, some companies offer a disability benefit only in case of permanent disability. There are riders that offer permanent and partial disability benefit in the event of an accident. As per the latter rider, the insured receives 50 per cent of the sum assured in case of permanent partial disability and 100 per cent of the sum assured in case of permanent total disability. There are other riders too, that provide 25 per cent to 100 per cent of the sum assured, depending on the extent of dismemberment/disability.