What is Accident Insurance?

Personal Accident Insurance Policy

Life’s uncertainties are known to us all. While we cannot prevent unforeseen events from occurring, we surely can keep ourselves, and our family protected against them financially. In the case of accidental death or disablement of the sole breadwinner of the family, the dependents will be pushed into a financial turmoil.

If you are the sole income earner of your family, you certainly would not want your loved ones to suffer in any way. That is when personal accident insurance may come in handy. Let us understand the personal accident insurance plan in detail.

What is Personal Accident Insurance?

The personal accident insurance plan reimburses the medical expenses incurred due to accidental death or disablement of the insured.

In other words, if you are involved in an unforeseen mishap, the treatment and hospitalisation expenses will be covered under the plan. Moreover, if something were to happen to you, your family will receive the rightful compensation to secure their finances and care for the dependents.

Types of Personal Accident Insurance Policy

There are two types of personal accident covers in health insurance that you can opt for:

• Individual Personal Accident Cover

The individual personal accident policy secures a single person in the event of an unfortunate incident. Such an insurance plan covers accidental injuries endured by the individual such as loss of sight or limbs, disabilities or even death.

• Group Personal Accident Cover

The group personal accident insurance plan safeguards a group of people covered under the policy. Such coverage is purchased by employers to cover their employees against the risk of accidents. Thus, employees can avail a personal accident cover at an affordable premium.

Features of Personal Accident Insurance

Besides paying a lump sum amount in the case of covered contingencies, the salient features of personal accident insurance plans in India are listed below:

• The policy is available at an affordable premium amount. Also, the premiums paid towards the personal accident insurance plan can be claimed for tax deductions under Section 80D of the Income Tax Act.

• Most insurers do not request the applicant to undergo a medical examination when buying the policy. However, it is wise to check with your chosen insurer beforehand for any such criteria.

• The sum assured amount is determined based on the applicant’s income.

• Personal accident insurance coverage is available only to the insured and cannot be extended to other family members.

What Does Personal Accident Insurance Cover?

The personal accident insurance plan covers the policyholder for the following aspects:

• Accidental Death

The policy provides a lump sum benefit to the dependent in case the insured dies in an accident.

• Permanent Total Disablement

If you (the insured) are left with permanent total disability due to the accident, the policy pays the entire sum assured amount to you. You can use this corpus to financially secure your loved ones from the loss of income.

• Permanent Partial Disablement

If you suffer from a permanent partial disability, a specific percentage of the sum assured is paid to you.

• Temporary Total Disablement

The policy also offers weekly benefits you (the insured) for a temporary period in case the insured suffers from temporary total disability. This sum can be used to take care of treatment costs as well as other household expenses.

What is Not Covered Under Personal Accident Coverage?

The personal accident insurance plan does not cover the following:

• Intentional Injury/Death

  If your (the policyholder’s) injury/death is found to be caused intentionally, no claim will be accepted under the personal accident coverage.
  

• Injuries Suffered Under the Influence of Drugs or Alcohol

  If it is found that your injuries/death was caused because you were under the influence of drugs or alcohol, no claim will be accepted under the personal accident policy.
  

• Injuries from a Civil or Foreign War

  No claim will be honoured under the personal accident coverage if the injuries are incurred due to your participation in a civil or foreign war.
  

• AIDS or HIV or Other STDs

  The insurance claim will not be accepted under the personal accident policy if your injuries/death was caused because of any STD.
  

• Claims Arising Out of Pregnancy or Childbirth Issues

  The insurance claim under this policy will not be accepted if you suffered from injuries as a result of pregnancy or childbirth.
  

• Claims Arising Out of Past Illnesses

  If you suffer from injuries due to any pre-existing medical conditions, the insurance claims will not be accepted under the personal accident policy.

Benefits of Personal Accident Insurance

 As explained earlier, the personal accident insurance plan is known to cover you (the insured) and your dependents against unforeseen events. Besides, the personal accident cover provides the following benefits:

• Secures Education Expenses

The dependent children will receive a lump sum benefit in case you (the insured) pass away or suffer permanent disability in the accident. This amount can be used to cover the education costs of the children.

• Covers Funeral Costs

The personal accident insurance policy also covers the expenses incurred on arranging the funeral of the insured. Thus, the dependents can have a funeral for their family member without worrying about their finances.

• Ensures Right Medical Care

In case the policyholder endures any accidental injuries, the policy covers the cost of hospitalisation and treatment. So, you can focus on recovering from your injuries by getting the best medical care!

• Repatriation of Mortal Remains

The charges incurred on transporting the mortal remains of the policyholder from the site of the accident to the hospital or their home is also covered under the personal accident insurance plan.

• Includes Ambulance Charges

The insurance provider shall reimburse the cost incurred on getting an ambulance for the insured.

• Pays for Travel Expenses

If the hospital is far from  your residence, the personal accident insurance cover shall pay for the actual travel cost. This benefit is available to  your immediate family members of the policyholder.

• Offers Hospital Daily Cash

Depending on your personal accident policy, the insurance provider shall payout a fixed amount in case of hospitalisation.

Why Do You Need Personal Accident Insurance?

• Covers Accident Costs

The chances of suffering from loss and multiple injuries are higher during an accident. Such an unfortunate mishap can lead to disability, loss of limbs or sight, and even death of the person. In this situation, the last thing you would want to worry about is the healthcare expenses, which is why personal accident insurance covers such costs with ease.

• Offers Wider Coverage

As the name suggests, personal accident insurance offers comprehensive coverage when it comes to accidental loss. Apart from death resulting from the mishap, it also includes other circumstances such as temporary or permanent disability and partial or total disability. Whether you suffer from fractures or a disability, you can always fall back onto your insurance plan.

• Provides Cheaper Premiums

The premium charged for a personal accident cover is comparatively lower when compared to the add-on covers available with other insurance plans.

Things You Should Know About Personal Accident Policy

 If you are planning to buy personal accident insurance online or offline in India, you should note the following things about the policy:

• The policy compensates in case the insured passes away or suffers total disability in an accident.

• One of the primary objectives of the personal accident plan is to protect the insured’s family financially. So, the policy makes up for the loss of income caused due to the accident.

• The policy offers lifelong coverage and can be renewed easily.

• The premiums paid towards the plan stay the same throughout the tenure. The age or lifestyle habits of the insured have no impact on the premium amount.

• The policy does not cover death caused due to illnesses.

• The policy offers daily cash benefits to the insured if the accident requires hospitalisation for recovery.

Conclusion

Given the fact that the road accident rate is significantly increasing in our country, it is wise to have personal accident insurance under your name, even if you have a comprehensive health insurance plan. The policy mainly acts as financial security for your loved ones in case you die or suffer disablement in a mishap.

If you are looking for a policy that covers illnesses and hospitalisation, you can buy a health insurance plan at Finserv MARKETS online. Here, you can also extend the coverage of your health plan to cover hospitalisation, treatment and more.

The health insurance plans available on Finserv MARKETS offer extensive coverage, cashless claim settlements, hassle-free renewals, reinstatement benefits, and so much more. If you are worried about the premiums charged on your chosen coverage and add-on benefits, use the health insurance premium calculator to determine the same.

So, why wait? Get a comprehensive health insurance plan at Finserv MARKETS, today!

You can also read about health insurance tax benefits by visiting Finserv MARKETS website.

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