Every day 400 people die in road accidents in India, which turns out to be around 1.5 Lakh deaths in a year. To put things in perspective, the entire population of popular hill station Shimla is around 1.7 Lakhs, as per the latest census data. But these numbers tell an incomplete story as every accident leaves more survivors than dead. However, surviving a severe accident can leave one with total or partial disability. Most people think that if they are careful while driving, the probability of accidents reduce drastically. The reality is very different, an accident can happen from anyone’s fault on the road.
It is very important to protect against physical and financial damages due to an accident. Though life insurance policies generally cover death in traffic accidents, they do not cover every type of accidental death. For instance, accidental death due to involvement in adventure or extreme sports are not covered by life insurance. If you want to fill in the important gap in your protection ring, an accident insurance policy becomes important.
What is an accident insurance policy?
Accident insurance protects you from medical and other expenses arising out of accidents. Besides covering loss of income due to partial or total disability, it covers emergency treatment, hospitalization and transportation and lodging costs. Health and life insurance have several exclusions, an accident policy fills in the gap. Though not very popular, in certain circumstances, an accident insurance policy can be the difference between well being and financial doom. If you do not have an active accident policy, here is why you should purchase one.
Covers Loss Due to Disabilities
An accident can lead to any level of disability and accident insurance covers both total and partial disability. An individual may suffer a total loss of income as he/she may not be able to participate in any kind of occupation. Accident policies provide 100 percent sum insured in cases of total disability leading to complete loss of livelihood. In case, a person suffers loss to a part of the body like losing an eye or hand or fingers, he/she can file a claim and the insurer will compensate for the loss. The compensation for partial disabilities is subject to sub-limits.
The medical expenses are significant in case of accidents. From emergency hospitalization, medical tests to ambulance service, accident policies provide for everything. Accident insurance can be used as an add-on health insurance, as the latter does not cover accidental medical emergencies. Purchasing a personal accident insurance plan to enhance your existing health cover is a prudent thing to do. The premiums for accidental cover is also relatively low. For instance, you can get insured for as low as Rs 591 against hospitalization and ambulance expenses arising out of an accident. Getting an accident cover has become very affordable with Bajaj Allianz’s sachet insurance policies such as Accidental Hospitalization and Outstation Accident plans. At Finserv MARKETS, you can choose from a variety of accident insurance plans as per your specific financial needs.
Accidental Death Benefit
The basic feature of an accident insurance policy to provide compensation to the family in case of a policyholder’s death. The policy provides 100 percent sum insured if an accident leads to death. The financial cushion provided by an accident cover helps in taking care of crucial financial needs like children’s education and other expenses. Some policies also offer optional children educational benefits and pay the complete or partial tuition fees as per the pre-decided clause.
Some accident policies provide cover for special circumstances which are generally not covered by normal health or life insurance. For instance, personal accident plans cover accidental death or disability due to adventure sports. Optional covers are also available with basic plans for medical expenses that arise if a person falls into a coma. Some policies provide global coverage, which means an individual will receive insurance benefits even if the accident happens in a foreign country.
Home or Vehicle Modification
Some disabilities require modifications to things of daily use like vehicles. For instance, if a person loses a hand and he requires a special steering wheel to drive using a single hand. The insurer will provide the funds for the modification of the steering wheel. Similarly, if someone needs a wheelchair to move around, he/she can file a claim to carry on modifications like adding ramps or railings at home.
Easy Documentation and Claim Settlement
Purchasing an accident cover is a simple process, which requires minimal documentation and no medical examinations. The claim settlement process is also relatively simple. In case of an accident, the insurer needs to be informed of the event details, the policy number and the policyholder’s details and the claim settlement is initiated without delay.
The role of an accident policy changes with the situation. If you are travelling abroad, the importance of personal accident insurance grows manifold. In normal circumstances, accident covers are a good way to enhance the effectiveness of your life and health insurance. Visit Finserv MARKETS for your complete insurance needs. The user-friendly portal provides a wide array of insurance options, which can be purchased in a few clicks of the mouse.
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