When do personal accident policies typically pay out capital sums?

Personal accident policies are designed to provide financial benefits primarily in response to severe incidents that result in significant outcomes for the insured. These policies typically pay out capital sums in the event of death or serious injuries, reflecting the underlying objective of the coverage to support policyholders and their families during catastrophic events. Death can occur as a direct result of an accident, and serious injuries may lead to long-term disability or significant medical expenses, which necessitate a substantial payout to assist with those financial burdens.

The rationale for focusing capital sums on death or serious injuries stems from the principle of providing necessary support during critical situations that greatly impact the insured person's life and wellbeing. Payouts for minor injuries or temporary disabilities do not align with the primary intent of personal accident policies, which is to offer comprehensive protection against more severe outcomes. In addition, the idea of needing a review of claims before payment is a standard practice but does not represent the primary conditions under which capital sums would be disbursed. The clear intent of these policies is to deliver immediate financial assistance in urgent scenarios that involve serious harm.