Bodily Injury Liability in Personal Lines policies

18.11.2021
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What is Bodily Injury Liability and in which AL3 group its details can be found in Personal Lines policies?

Introduction to Bodily Injury coverage:

If you get into a car accident and injure another person, bodily injury liability covers the expenses involved in treating that person. This insurance coverage pays the hospital bills and the lost income of the individual as a result of the accident. In case, if the injured person sues you for the accident, It will also cover the legal fees for that.

Bodily injury coverage is subject to a limit, which is the maximum amount a vehicle insurance policy will pay toward a covered claim. Generally, bodily injury liability coverage has two coverage limits: a per-person limit and a per-accident limit.

Bodily Injury(BI) coverage in AL3 File:

The bodily injury comes as a coverage code in Personal Lines policies. In AL3 files, we can find Bodily Injury(BI) coverage code in 6CVA or 6CVH groups. Here, is the example of bodily injury coverage code in the AL3 file:
Liability

6CVA (Personal Automobile Coverage and Adjustments Group):- This Coverage Group is used only for Personal Automobile transactions. When the coverage code is BI, it means all the data in this group is related to the bodily injury coverage.

The limit fields define the entry of the coverage’s limits or increased amounts. The limit fields can also be used for the dollar amounts of a coverage’s option if a corresponding option code does not exist.

Deductible fields in this group define the amount that a policyholder has to pay before the insurance company starts paying up. In other words, when an insured meets the deductible, it means that he/she has paid the entire amount of your coverage’s deductible. The insurer will pay the claim amount only when it exceeds the deductible.

Coverages can apply at either the policy or unit at-risk level. A policy-level coverage, such as Automobile Death Indemnity and Benefits, applies to all risks on the policy and is attached to the All Location Unit at Risk Group (LUR). A unit at risk coverage is rated by a specific vehicle and is attached to the applicable Vehicle Group. Those coverages that are the same for each vehicle are still considered to be at a unit at risk level if the coverage is rated on an individual vehicle basis.

6CVH(Homeowners and Dwelling Fire Coverage and Adjustments Group):- This coverage group is used for all Homeowners and Dwelling Fire coverages. It may also be used in an umbrella/excess transaction.

This group may be attached to a number of different risk level groups. It can be attached to the Homeowners and Dwelling Fire Rating/Underwriting Group (6HRU), Water Unit Liability Group (6WAL), or the Personal Umbrella and Excess Liability Group (5PUL) in a Personal umbrella policy to represent liability coverages for other Personal Lines of business. Same as the 6CVA group, the ‘BI’ value of the coverage code field in this group represents data such as limits, deductibles, and premiums, etc. for the bodily injury coverage.

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