Home / Money / Personal Finance /  Personal accident plans don’t cover covid deaths

My brother and I had taken a home loan in which the loan coverage policy was done through the bank. Unfortunately, my brother recently passed away due to covid.

When I submitted a claim, the company denied the same, saying that the policy only covers personal accidents. Shocked by the news of my brother’s death, my father also passed away recently.

Now, I am the only one left to take care of my family. Please help.

—Neetad Baranwal

With a home loan, generally, banks insist on buying three products i.e., personal accident, home insurance and life insurance. Covid deaths will be covered under a life insurance plan.

You should check with the bank about a life insurance product that may have been attached to the home loan. This will be issued by a life insurance company. You could also check your home loan statement for charges deducted for life insurance.

Separately, you could check if your brother and father had subscribed to the Pradhan Mantri Jeevan Jyoti Bima Yojana. This is a life insurance scheme and pays a lump sum of 2 lakh to the nominee. Their bank statements would show a deduction for this premium.

The personal accident plan only covers accidental death. Such a plan excludes any natural death or death caused by illnesses, such as covid. Life insurance plans cover all kinds of death, natural as well as accidental.

Abhishek Bondia is principal officer and managing director,

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