Which type of policy is considered a special risk policy?

A special risk policy is designed to cover unique or extraordinary risks that are not typically included in standard insurance policies. The dread disease policy specifically provides coverage for certain serious illnesses, often listed specifically in the policy, which can encompass diseases like cancer, heart disease, and others. This type of insurance is tailored for individuals who may have heightened concerns about specific illnesses, and it serves as a supplementary coverage option.

While travel accident policies and hospital indemnity plans provide coverage for specific situations, they do not fall under the category of special risk policies. Travel accident insurance typically covers incidents that occur while traveling, while hospital indemnity provides fixed benefits for hospital stays. Cancer policies are focused on coverage specifically for cancer treatment, which might present a narrower scope than the broader term "dread disease." Therefore, the dread disease policy stands out as the correct example of a special risk policy.