What is personal accident insurance?
An accident insurance policy provides you and your family with financial coverage in case of eventualities caused by an accident. The main aim of such insurance is to provide protection against temporary or permanent reduction in income as a result of accidents.
Why do you need personal accident insurance?
Accidents give no warning. Despite taking precautions, we have little control over mishaps and hence it’s imperative to buy accident policy to secure protection against accidents that may result in permanent or partial disability or even death; thereby having a significant impact on the financial capacities of affected individuals as well as dependent families.
Also, life insurance cover can be availed in case of a fatality, whereas health insurance covers will cover only your accident-related hospitalization charges. In a scenario, whereas accident doesn’t kill you but hampers your capacity to earn, personal accident cover is what you need to come to your rescue.
Here's what a personal accident Insurance policy covers:
• Permanent total disability
• Permanent partial disability
• Temporary total disability
• Temporary partial disability
The cover payable in each of these cases varies, based on the graveness of the damage suffered.
What factors determine the premium amount for personal accident policies?
While age is the key factor for deciding the premium amount for health insurance policies, it isn’t considered while determining the premium for personal accident insurance. Instead, profession becomes a consideration, with those engaged in high-risk occupations such as the armed forces, adventure sports, mining, etc. facing certain exclusions from insurance agencies.
What are the Benefits of Taking Personal Accident Insurance Policy?
• Provides a safety net in case of unforeseen accidents.
• Ensures financial security for your family, especially for your dependants such as old parents or young children.
You can extend your plan to include your entire family under a single policy.
• It is very affordable. A standard personal accident insurance plan with a cover of Rs. 15 lakh costs less than Rs. 3,000 per year, i.e. approximately Rs. 9 per day.
• Plans offer worldwide coverage, and the policyholder is protected against accidents suffered even while travelling overseas
• The process of getting a personal insurance plan is hassle-free. All you need to do is complete and submit the proposal form attach the premium instrument
Things to keep in mind while purchasing an accident insurance policy
• Before your claim for personal accident insurance is passed, the events leading to the accident will be verified by the insurance agency. Make sure you provide accurate details because discrepancies and false information can lead to the rejection of the claim.
• An individual accident insurance policy is more comprehensive and offers greater protection than those of a group plan. Hence, it’s important to check and choose a plan that suits you best.
• Injury and death caused by illnesses aren’t covered under personal accident insurance, even if they may be linked to the nature of the claimant’s job.
• There are no tax benefits associated with an accident insurance policy.