What effect does the change of occupation provision have if a person is injured while performing a more hazardous job than listed in their disability income policy?

The change of occupation provision in a disability income policy is designed to adjust benefits based on the risk associated with a person's occupation. If an insured individual is injured while working in a job that is deemed more hazardous than the occupation listed in their policy, the provision typically results in a reduction of the benefit level.

This is because the insurer considers that the individual had voluntarily taken on additional risk by changing to a more hazardous occupation. The original benefit level and premiums were determined based on the risk of the occupation stated in the policy. When a person changes to a higher-risk job, their chances of becoming disabled may increase, and thus the insurance company will lower the benefit to reflect this increased risk, aligning with the terms of the policy.

This mechanism ensures that the insurance coverage remains equitable and that the insurer is not held liable for risks that were not factored into the original policy. Overall, such a provision protects the insurer while also prompting policyholders to be mindful of the risks associated with their employment.