Some insurance providers will provide the option for Partial Disablement whereby as a result of sickness or injury the policyholder is not totally disabled and is able to work in their own occupation at a reduced capacity. As a result, the insureds monthly income is less than the pre-disability income. This must be certified by an approved medical practitioner.
The requirements of partial disablement feature generally comes under an hours or duties based definition.
- Hours Based Partial Disablement: Benefit paid if policyholder has returned to work following being partially disabled for entire duration of waiting period and is able to perform duties in their occupation for defined number of hours, is earning less than their pre-disability income and is under medical care.
- Duties Based Definition: Benefit paid after policyholder has returned to work following being totally disabled and is not capable of performing the duties essential in producing their income and is forced to earn less than their pre-disability income.
This benefit is determined using the following formula:
(Pre-disability income – post-disability income) / (pre-disability income x monthly benefit)
Some policies will provide this partial payment under certain defined conditions suffered by the policyholder. This may include the permanent loss of the use of;
- One arm, or
- One leg, or
- Sight in one eye