Ritesh, a 36-year-old management professional met with an unfortunate accident while commuting to work. He was bedridden, and couldn’t resume work for the next 10 months. Ritesh had an active life and health insurance policies, but none of the two were of any use in the situation. He had a hefty medical bills to pay and at the same time had to face a loss of income. There are two ways he could have avoided the financial stress faced after the accident.
Some life and health insurance plans offer optional accidental benefits, but it is not a default option. The intelligent thing to do would be to purchase personal accident insurance, which safeguards against expenses arising out of an accident. The importance of personal accident insurance has grown manifold at a time when fatal road accidents are on the rise. An accident policy not just covers death, but also total and partial disability due to an accident. Let us have a look at what all is covered by personal accident insurance.
The basic protection provided by a personal accident policy is against the death of the policyholder. The base cover protects the policyholder’s family from financial hardships in his/her absence. Accidental deaths are rising rapidly in India. According to official data, every year around 1.5 lakh people die in road accidents in India. Some life insurance offer accident covers, but it is better to check with your insurer before calamity strikes.
An accident insurance plan provides coverage in case of total disability. For instance, if a person loses both eyes or arms and is unable to engage in any occupation, the insurer will offer compensation equal to 100 percent sum insured. Some plans like Bajaj Allianz Personal Guard Accident Health Insurance Policy provide 125 percent of the sum insured in the event of total disability.
Coverage for permanent partial disability rounds off the three base covers of most personal accident policies. Some accidents leave a person with partial disabilities like loss of vision in one eye, a hand at the wrist or the thumb. Personal accident policies generally provide a part of the sum insured for permanent partial disability. The coverage for total and partial disability differentiates an accident policy from health insurance.
Temporary Total Disability
If we consider the case of Ritesh, he was not permanently disabled and was able to resume work after some time. Temporary total disability grounds a person for a specific period of time. Contrary to permanent disability, coverage for temporary total disability is not a default option in accident policies and has to be added. Insurers charge higher premiums for policies which cover temporary total disability but provide compensation for loss the policyholder’s income.
Accidents often lead to hospitalization and personal accident insurance covers the entire cost of it. Your health insurance may not be adequate to secure you from the various costs of accidental hospitalization. A personal accident cover compensates for emergency medical care due to an accident and all the additional costs ranging from ambulance service to medical tests.
Children Education Benefit
The worst suffers from the loss of a breadwinner are children, who are often forced to discontinue their education. Many insurers offer an optional cover for children’s education. In case of death or permanent total disability of the policyholder, the insurer pays a part of the children’s tuition fees. Children education cover is often an optional feature which has to be added to the base policy.
Adventure Sports Benefit
The allure of adventure sports is rising in India, but it also places people in a risky environment. Bajaj Allianz Global Personal Guard Policy, available on Finserv MARKETS, is the only insurance plan in the country that offers cover for accidents due to participation in adventure sports. The policy has global coverage, which enables policyholders to indulge in adventure activities anywhere in the world. Besides coverage for adventure sports, the Global Personal Guard Policy provides an option to choose from 11 other add-on covers. The policy provides optional coverage for accidental hospitalization, air ambulance cover, children education benefit, coma due to accidental bodily injury, EMI payment cover, fracture care, hospital cash benefit, loan protector cover, income loss due to a disability, road ambulance cover and travel expenses benefit.
The personal accident insurance cover should be viewed as an enhancement of life and health insurance. It fills the gaps left open by health and life insurance. The premium for accident cover is relatively lower than other insurance covers. You should purchase a policy according to your specific requirements like the frequency of travel and annual income. To choose from a wide range of insurance policies, visit Finserv MARKETS, a one-stop solution for all your financial needs.
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