What limitation is generally placed on benefit payments in PA and sickness policies?

In personal accident (PA) and sickness policies, the limitation placed on benefit payments typically revolves around the maximum sum insured or the capital sum that can be claimed. This maximum benefit is predetermined at the inception of the policy, establishing a clear limit for the insurer's liability in the event of a claim.

For instance, if a policyholder suffers an injury covered under their PA policy, they can claim up to the specified capital sum, which represents the maximum compensation for that particular incident. Similarly, for sickness policies, the benefits paid out usually do not exceed a preset maximum limit, ensuring that the insurer can manage its exposure to risk while providing adequate coverage to policyholders.

This aligns with standard practices in insurance, where benefits are capped to avoid excessive claims that could lead to financial instability for the insurer. Other options, such as cumulative claims or restrictions on the number of claims, do not typically reflect the structure used in PA and sickness policies, emphasizing the relevance and correctness of the chosen answer.