Accidental Death and Dismemberment Insurance Denies Pay-Out for Accident That Leaves Man Paralyzed

Accidental Death and Dismemberment Insurance Denies Pay-Out for Accident That Leaves Man Paralyzed

Accidental Death and Dismemberment (AD&D) is a type of insurance that pays benefits to the beneficiary if death is caused by a non work-related accident. It also provides a lump-sum benefit payment to the policy holder in case of accidental dismemberment of limbs or eyes. Death or dismemberment must occur within 90 days of the accident in order to be covered under most policies.

This form of insurance can be purchased on its own, but it is usually an add-on to private health and life insurance policies and is also included in most group health policies provided to employees. Credit card companies are also known to sell AD&D insurance.

AD&D that is purchased as a stand-alone policy will usually have low premiums since insurance companies know that they rarely have to pay out on these types of claims. However, when a tragic accident occurs and a claimant seeks benefits, they may still be denied.

We recently spoke to a claimant whose husband had slipped and fallen in their home and suffered damage to his cervical spine, making him a quadriplegic. When she put in a claim for benefits to their AD&D insurance, they were denied.

The insurer stipulated that although her husband had lost use of his limbs, his limbs had not been dismembered.

Not all AD&D policies have this exclusion. Some do cover the loss of use of limbs. Unfortunately for this husband and wife, their policy did not. This is an important lesson to remember if you are considering purchasing AD&D insurance or have a policy that you have not reviewed carefully.

Has your AD&D insurance claim been denied? Contact Share Lawyers and put our experience to work for you.

All initial consultations with our lawyers are free and there are no fees until we win your case.