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How Does a Personal Accident Insurance Policy Work?

By Finserv MARKETS - Aug 28,2019
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Everything About Personal Accident Insurance Policy.

If you’re one car accident away from poverty, you’re on a high wire without a safety net. And that’s a challenging proposition – Tom Perez

There has been a drastic surge in road fatalities in India since 2017 that put the annual tally of road accident deaths at over a lakh and a half, according to the latest report published by the Indian Ministry of Road Transport and Highways. It is worthwhile to note that the youth have been the largest casualties of road accidents in India. In 2016, over 60% of people who lost their lives in road crashes fall between the age group of 18-35 years, a considerable chunk of India’s young populace.

Sadly, a majority of them were the sole breadwinners of their families. Such situations that can financially handicap an entire family highlight the need to opt for a personal accident insurance policy, like the Bajaj Allianz Global Personal Guard Plan available on Finserv MARKETS.

What is a personal accident insurance?

A personal accident insurance is a policy that can provide adequate coverage to you in case of partial/total disability, temporary/permanent disability or death resulting from accidents. In addition to reimbursing your medical expenses, the personal accident insurance facilitates a bundle of other benefits like family transportation allowance for the family members of the injured to reach the hospital beyond 150 km from home, education and employment benefits, and even funeral expenses in accidental death cases. At Finserv MARKETS, the Bajaj Allianz Global Personal Guard Plan even extends a few rare benefits like hospital confinement allowance to the insured, and high disability claim compensation in cases of permanent disability.

Eligibility Terms and Conditions

Unlike life insurance, people across all age groups are eligible to opt for personal accident insurance. The premiums do not depend on the individual’s age and remains the same across all age groups. However, it takes into account the nature of your profession and income from it. People in high-risk occupations like air force, adventure sport trainers who would like to buy a personal accident insurance plan face a high chance of rejection by some insurance providers. Some of the policies also offer a discount on policy premium which Finserv MARKETS does provide, if you cover two or more of your family members under the Bajaj Allianz Global Personal Guard Plan. The plan allows for direct, hassle-free purchase via a single click online and a smoother claim process, and investing in it is way cheaper than buying a term life insurance cover.

As personal accident insurance attempts to bridge the gap between health insurance and life insurance sectors, it ought to be unsurprising that the plan does not allow for tax exemption, despite individual income being a marker to decide the policy premium.

Major Exclusions of a Personal Accident Insurance Plan

Personal Accident Insurance Plan comes with its own set of limitations. It may not cover for every sort of accident that you may get into. Some of the major exclusions include suicide, self-injuries, natural death, pre-existing disability, childbirth or pregnancy, non-allopathic treatments, the influence of intoxicants, and suffering from any mental disorders. Also, committing a criminal act or being involved in war activities, or participating in the naval, military, air force, and adventurous sports activities are also among the major exclusions.

Any accident arising out of voluntary intoxication is also excluded from the policy.

However, if you are under medicinal intoxication, you will be eligible to file a claim if you can produce a prescription. Personal accident plans also do not cover for adventure sports, such as skydiving, mountaineering, bungee jumping, etc., that are increasingly popular among vacationers. These activities are perceived to have a higher level of inherent danger, because of which they are excluded from the policy. However, the Bajaj Allianz Global Personal Guard Policy does offer a cover for those who indulge in adventure sports activities.

The increasing pace of our lives is thrilling, but it is also elevating the risk rate. The growth in the statistics of accidents happening of late, prove the same. To keep abreast with changing times, you also need to be wise, and secure yourself and your family against the mishaps that you might be exposed to. While accidents can happen to anyone irrespective of the time or place, its impact on the victim’s life or those of his/her dependents can vary from small to big, permanent to temporary. Life is precious and to prepare you against life’s uncertainties, it is advisable to opt for personal accident insurance policy that covers a number of eventualities.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522