What is the basis of charging the premium under a personal accident and a mediclaim policy by insurance companies?For a personal accident insurance policy, the insured individual’s occupation is the main criterion for charging the premium. Based on the profession of the individual, he or she is placed in a risk group and the premium is charged accordingly. People in hazardous working conditions are charged higher premium compared to people in other professions. In personal accident policies, the age of the proposer is not of much importance. In mediclaim policies, on the other hand, the age of the proposer and his health condition are the prime consideration for determining the premium to be charged.
