Some—not all--auto insurance policies have a separate category for death benefits should you or your spouse die in a car accident. The limits on this coverage are, separate from medical payments coverage. Our sample fault-based policy has $15,000 policy limits listed for auto death benefits for each named insureds listed on the declarations sheet. It does not matter who was at fault. Death benefits are paid to the surviving spouse, parents of a minor child, or the estate of the insured individual.
Like the other coverages, this section adds some additional definitions, which apply only to this Part.
Additional Definitions Used In This Part Only
Insured person means the individual or individuals named in Item #1 of the Declarations of this policy, and the named person’s spouse if a resident of the same household providing a separate premium charge has been made for that person’s coverage.
Car includes a utility trailer but does not include any vehicle while located for use as a residence or premises.
Continuously totally disabled means any disablement provided (a) it resulted directly or independently of all other causes from bodily injury caused by the accident, (b) it commenced within 20 days of the date of such accident, and (c) during the period following it, it continuously prevents the insured person from performing any of the duties incident to the insured person’s occupation.
Agreement
If your car insurance policy includes automobile death benefits, the following wording is commonly found for, what our sample fault based policy calls, Coverage C—Automobile Death Benefits Coverage:
We will pay the amount stated in the Declarations for the death of the insured person as a result of bodily injury caused by accident and sustained while occupying a car or through being struck by a moving motor vehicle while not occupying a motor vehicle.
The death, however, must occur within 90 days following the date of the accident and during a period when the insured person is continuously totally disabled.
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Explanation
Who’s covered? The “insured person” for the purposes of death benefits coverage is a covered individual, either the named insured or a spouse living in the same household, as listed in the declarations sheet, both of who pay a separate premium. “Insured person” does not include other relatives, members of the household, or others who use your car. An insured person’s death will be covered up to the policy limits for this coverage if they were hit or struck by a car and died from accident-related injuries within 90 days. In this particular policy, the deceased must have been continuously totally disabled prior to death, i.e., unable to perform their job.
Exclusions: What Is Not Included
Although this coverage seems pretty straight forward, leave it to the insurance company to come up with numerous exclusions. The ones that need further explanation will be discussed below the list.
This coverage does not apply to death of an insured person:
(1) sustained in the course of the insured person’s occupation while engaged in duties incident to the operation, loading or unloading of a vehicle when used to carry persons or property for a charge or a commercially licensed car. This exclusion does not apply to a commercially licensed car that is described in the Declarations or is a private passenger car;
(2) sustained in the course of the insured person’s occupation while engaged in duties incident to the repair or servicing of automobiles;
(3) caused by or resulting from disease other than pus-forming infection which occurs through bodily injury;
(4) due to suicide, while sane or insane;
(5) caused by war, nuclear reaction, radiation or radioactive contamination;
(6) sustained while occupying or through being struck by (a) a vehicle operated on rails or crawler-treads, or (b) a farm-type tractor or other equipment designed for use principally off public roads, while not upon public roads.
(7) sustained while occupying any motor vehicle operated in an race or speed contest.
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(1) If you were to answer the question, what were you doing when the accident occurred, and your answer is you were performing your job, and your job includes loading or unloading people or property onto or off of a vehicle for a charge, (such as an airport shuttle bus, or a moving van), which is not a vehicle named on your policy as an insured vehicle, you won’t qualify for death benefits.
(2) If you die at work while repairing or servicing automobiles, you won’t qualify for death benefits.
(3) If you die from a disease that has nothing to do with the accident, there’s no coverage. If, however, you get a pus-forming infection caused by the bodily injury from the accident, and the infection kills you, you’re covered.
(6) This basically means that if you are killed while occupying or being hit off road by a tractor or other off-road farm vehicle, or a rail or crawl-treaded vehicle, there are no death benefits available.
Payment of Indemnity (Death Benefit) – Autopsy
This section refers to how and to whom the death benefits will be paid.
We may discharge our liability under this coverage by payment of the indemnity:
(1) to the surviving spouse, if any, if a resident of the same household as the deceased insured person at the time of the accident, or
(2) to the parent or parents of a minor unmarried deceased insured person, if a resident or residents of the same household, or
(3) to the estate of the insured person, if neither (1) nor (2) above is applicable.
We shall have the right and opportunity to require an autopsy where it is not forbidden by law. | |
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