Accidental Death and Dismemberment (AD&D)

A limited policy that pays accidental death and dismemberment benefits only while the insured is traveling — A travel accident policy is a limited policy: it provides accidental death and dismemberment benefits, and often related medical or disability payments, but only for accidents occurring while the insured is on a trip, flight, or other travel covered by the contract. Coverage is narrowly tied to the travel activity and is typically sold as a low-cost supplement rather than a substitute for major medical insurance. Because the exposure window is short and well defined, travel accident policies are inexpensive and easy to underwrite, and the agent should clearly disclose the boundaries of the coverage to the applicant.

National insurance concept

It pays benefits for accidental injuries, and often accidental death and dismemberment, that occur while the insured is traveling, but generally does not cover sickness — A travel accident policy is a limited-benefit accident policy: coverage attaches only to accidental injuries, and typically accidental death and dismemberment, sustained during the covered trip. It does not cover sickness, which is why a traveler who becomes ill mid-trip is not paid under the accident benefit. Because the coverage is tied to travel and to accident as the cause, premiums are low and benefits are fixed in the contract rather than tied to the size of medical bills. Travel accident is one of the named limited policies in the general concepts of medical and disability insurance (AH-II.3), and the accident-only scope is the trait examiners test.

National insurance concept