Premium Rating in Personal Accident Insurance

In personal accident insurance, the rating factor used is the occupation. Generally speaking, exposure to personal accidents at home, on the street etc. is the same for everyone but the risks associated with occupation vary according to the nature of work performed. For example, an office manager is less exposed to risk at work than a civil engineer working at a site where a building is constructed.

It is not practicable to fix a rate for each profession or occupation. Hence, occupations are classified into groups with similar risk exposure.

Risk Group I: (Lowest Premium rate)

Accountants, Doctors, Lawyers, Architects, Consulting Engineers, Teachers, Bankers, and Persons engaged in administration functions. Persons primarily engaged in occupations of similar hazards.

Risk Group II: (Higher Premium rate)

Builders, Contractors and Engineers engaged in superintending functions only, Veterinary Doctors, paid drivers of motor cars and light motor vehicles and persons engaged in occupation of similar hazards and not engaged in manual labour. All persons engaged in manual labour (Except those falling under Group III), Cash Carrying Employees, Garage and Motor Mechanics, Machine Operators, Drivers of trucks or lorries and other heavy vehicles. Professional Athletes, and Sportsmen, Woodworking Machinists and Persons engaged in occupations of similar hazards.

Risk Group III: (Highest Premium Rate)

Persons working in underground mines, explosives, magazines, workers involved in electrical installation with high tension supply. Jockeys, Circus Personnel, Persons engaged in activities like racing on wheels or horseback, big game hunting, mountaineering, winter sports, skiing, ice hockey, ballooning, hang gliding, river rafting, polo and persons engaged in occupations /activities of similar hazard.