What is a Personal Accident Insurance Policy?

What is Personal Accident Insurance?

Personal accident insurance in health insurance is a policy that reimburses the medical expenses incurred due to an unfortunate mishap on the road. So, if you are involved in an unforeseen accident, the treatment and hospitalisation expenses will be covered under the plan. Moreover, if something were to happen to you, your family would receive the rightful compensation to secure their finances and take care of the dependents.

However, road accidents in our country have been a rising concern with India accounting for at least 6% of the global road accidents where 70% of incidents involved youngsters. In recent times, the number of road accidents in Maharashtra has increased by 17% in 2021, reporting a 15% rise in fatalities and injuries when compared to 2020. While you cannot prevent unforeseen events, you can surely take a step towards financially protecting yourself and your loved ones against them. That is when a personal accident insurance policy comes in handy.

Types of Personal Accident Insurance

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 sustained by the policyholder 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 organisations to cover their employees against the risk of accidents. Thus, employees can avail a personal accident cover at an affordable premium.

Best Personal Accident Insurance Plans on Bajaj MARKETS

Here are some of the best personal accident covers available on Bajaj MARKETS:

Disclaimer: *Premium rates are indicative. The actual premium might change depending on numerous factors.

What’s Covered Under Personal Accident Insurance

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

• Accidental Death

The personal accident policy offers a lump sum benefit to the dependent in case of the unfortunate death of the insured.

• Permanent Total Disablement

If you (the insured) are left with permanent total disability due to the accident, the policy pays out the entire sum insured 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 insured is paid to you to help secure your medical expenses.

• Temporary Total Disablement

The personal accident policy also offers weekly benefits for a brief 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’s Not Covered Under Personal Accident Insurance

The personal accident insurance plan does not cover the following:

• Intentional Injury/Death

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

• Injuries Suffered Under Influence

If it is found that your injuries or death were 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 plan if the injuries are incurred due to your participation in a civil or foreign war.

• Pregnancy or Childbirth Complications

The insurance claims filed under this policy due to complications as a result of pregnancy or childbirth will not be accepted.

• 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.

Features & Benefits of Personal Accident Insurance

• Secures Education Expenses

The dependent children will receive a lump sum benefit in case of permanent disability or death of the insured due to an 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 while arranging the funeral of the insured. Thus, the dependents can have a funeral for their family member without worrying about their finances.

• Ensures 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!

• Burns & Broken Bones

Any accidental burns, fractured bones or any bone damage experienced by the policyholder due to the accident is covered under the policy.

• Repatriation of Mortal Remains

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

• Covers Ambulance Charges

The insurance provider shall reimburse the cost of 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 the 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 to manage other medical expenses.

Tax Implications Under a Personal Accident Policy

A personal accident insurance in health insurance is not eligible for tax benefits under Section 80D of the Income Tax Act, 1961. So, if you opt for a personal accident insurance policy, you cannot claim the premiums paid towards the plan for tax deductions. However, you must consider the benefits offered under the insurance plan that financially secure you against untoward incidents. Such insurance policies should not be purchased only for tax savings as the primary reason to buy them is to gain protection against mishaps!

Why Do You Need Personal Accident Insurance?

• Financially Secures Against Accidents

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

• Offers Wider Coverage

As the name suggests, personal accident health 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. You can always fall back onto your insurance plan no matter what!

• Provides Cost-Effective Premiums

The premium charged for a personal accident cover is quite affordable when you take the benefits into account. When compared to other plans, not only can you avail lump sum payouts but also get extensive coverage at an affordable cost!

How Much Does Personal Accident Insurance Cost?

The premium of the accident insurance policy depends on various factors such as your age, occupation, medical history, etc. Thus, the cost of the personal accident cover may vary from one insurance provider to another. But it is recommended to avoid compromising on the coverage for a lower premium quote.

How Much Insurance Coverage is Sufficient?

While estimating the coverage for your personal accident health insurance plan, you must understand the requirements of your dependents. In the event of permanent disability or death, the sum insured of the plan must be sufficient enough to secure the financial needs of your family. As a thumb rule, many recommend that the coverage amount of the insurance policy should be 8-10 times your annual income. This can easily safeguard the financial requirements of your loved ones without depending on anyone else.

How to Raise a Personal Accident Insurance Claim

Although we would never want something unfortunate to happen to you, it is crucial to know the claim process in case of emergencies. You can follow the step-by-step process to raise a successful insurance claim:

• Cashless Insurance Claim

Step 1: Inform your insurance provider regarding the claim at the earliest.

Step 2: Locate a nearby network hospital associated with your insurance company.

Step 3: Provide your cashless card or policy number at the hospital to get admitted.

Step 4: Fill out the pre-authorisation form available at the hospital desk and submit it along with relevant documents.

Step 5: On receiving approval from the insurer, you can avail cashless treatment without any worries.

• Reimbursement Insurance Claim

Step 1: Make sure you intimate the insurer about the claim as soon as possible.

Step 2: Seek treatment at a hospital of your choice, pay the bill and maintain the original receipts.

Step 3: Raise a reimbursement claim on discharge and submit the supporting documents to the insurance provider.

Step 4: The insurer shall verify the details and ask for any information, if required.

Step 5: If the insurance claim satisfies the terms and conditions of your policy, the insurer shall compensate for the medical expenses incurred.

Documents Required Under Personal Accident Insurance

You must submit the following documents while filing an accidental death or disability claim under the personal accident policy:

• Original insurance policy document

• Death certificate of the policyholder, in case of death

• Proof of identity

• Proof of age

• Medical certificate, as proof of death of the insured

• Discharge form

• Post-mortem report

• Hospital records

• Police FIR

• Medical bills and receipts

Conclusion

Knowing that the road accident rate is significantly increasing in our country, it is wise to have personal accident insurance, even if you already have a comprehensive health insurance plan. Such a policy mainly acts as financial security for your loved ones in the event of an unfortunate accident.

However, you must know that comprehensive health insurance is just as important. If you are looking for a policy that covers the cost of hospitalisation and other ailments, you can browse through the health insurance plans available on Bajaj MARKETS. Avail extensive coverage, cashless health insurance, hassle-free renewals, reinstatement benefits, and so much more!

If you are worried about the premiums charged on your chosen coverage, use our health insurance premium calculator to know your insurance quote today!

Best Health Insurance Plans Available at Bajaj MARKETS