What is the maximum benefit cap for Accident, Sickness, and Unemployment cover?

The maximum benefit cap for Accident, Sickness, and Unemployment cover is typically set at 75% of gross earnings. This percentage is designed to provide substantial financial support while ensuring that claimants do not receive more in benefits than they were earning while working, which helps maintain a balance between providing assistance and encouraging a return to work.

This approach also aligns with insurance principles, where benefits are designed to cover essential living expenses without creating disincentives for individuals to seek employment once they are able. It is often considered that covering 75% of gross earnings offers a reasonable level of financial support during periods of unemployment or incapacity due to illness or injury.

Choosing a lower percentage would not adequately support individuals facing temporary loss of income, while a higher percentage could lead to instances where policyholders might choose not to return to work promptly, contradicting the objectives of such insurance covers. Thus, setting the cap at 75% strikes an effective balance.