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What are the benefits of a personal accident insurance?

By Finserv MARKETS - Aug 14,2019
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What are the benefits of a personal accident insurance

Abhijith recently moved from Bangalore to Ahmedabad to begin an MBA program in a top business school. Before making his move, he made sure to keep basic essential insurance covers in place. He opted for a health insurance policy as it provides a cushion against hospitalization costs. To cover any other ill-timed incident, he also availed of life insurance. While he was as familiar with these policies as you may be, he had no idea about the personal accident insurance policy. Due to its low-priced nature, personal accident schemes are not actively sold and are less popular. But they can be highly beneficial.

While researching on the application for insurance, Abhijith came across the benefits of personal accident insurance. He intended to purchase his own vehicle and realized that having a safeguard against accidents would keep his bank account intact. No one can predict an accident, but what you can do is take measures to counter the after-effects through a personal accident plan.

What is personal accident insurance?

A personal accident policy protects you financially in the fatal event of death, permanent total disability, partial disability or temporary total disability by way of an accident. It is a benefit plan that pays you a predetermined sum assured in the event of death or disability. The beneficiary can make use of this sum to reimburse medical expenses and provide compensation in case of extreme situations.

Why have a claim to personal accident insurance?

You do not need to own a car or bike to require personal accident policy. An accident cover is not limited to what you drive, but is more a benefit for any bodily harm you may endure.

According to road safety data in India, a large number of commuters are paralysed or die due to road accidents every year. This is not uncommon in other countries. Especially in migration-friendly countries, an anticipated growing population has resulted in higher numbers of two and four wheelers. Having an insurance cover is an underlying support to accidental situations. Let us look at some of the benefits of personal accident insurance.

Staying financially secure

Having an accident policy makes sure you cover any financial liabilities that arise due to a personal accident or injury. You will be able to keep your savings intact by paying for exorbitant hospital fees, including ambulance costs, using a personal accident insurance claim.

What are the benefits of a personal accident insurance

Receiving a hospital confinement allowance

If you are rendered disabled and cannot work for a particular period of time, a personal accident policy can guarantee that you receive Rs. 1000 per day up to a 30-day period. This ensures that your regular income is undisturbed and you are under no additional pressure. Such a unique policy can be obtained on the Finserv MARKETS platform.

High-disability compensation

A personal accident claim works like a fastrack court and assists you with the earliest possible disbursal. Usually a claim is processed within seven working days of fulfilling all requirements.

In case of an extreme accident where an individual is in a state of permanent total disability, s/he can get up to 125 percent of the total sum insured.

Cover against accidental death

An accident can be extremely worrying for your family. In the circumstance of death in an accident, a policyholder will receive accidental death compensation. This will be transferred to the claim holder’s beneficiary, thereby ensuring that the family is financially secure in such a situation. Usually the compensation can vary from Rs. 5 lakh to Rs. 1 crore. The beneficiary will have to provide a death certificate that mentions the cause of death.

What are the benefits of a personal accident insurance

Possible advantage of education grants

Some accident policies also include education grants that enable financial coverage for the education of the policyholder’s dependent children in case of accidental deaths. However, this should be rechecked by the user under the terms and conditions as all accident policies may not have the same features. You may learn more about the details of such grants on Finserv MARKETS and apply for your own personal accident insurance.

Worldwide coverage to the claim

Since the accident claim is meant to protect bodily harm, it is not region-specific. It does not mean that you have to be in your country of residence for you to receive compensation at the time of an accident. Hence, a personal accident claim insures you globally against accidental damage.

Conclusion

All accidents are untimely. Major accidents can completely alter the course of our lives through significant medical expenditure, leaving us in the absence of adequate funds. Considering the above benefits of personal accident insurance , it is best to be safeguarded against unforeseen circumstances and stay financially protected.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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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