Personal Accident Insurance Policy

Life’s uncertainties are known to us all. While we cannot prevent the 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 suffer from disability due to an accident, the treatment and hospitalisation expenses will be covered under the plan. Moreover, if you die in the accident, your family will receive compensation under the policy so that they do not face any financial crisis.

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. Individuals below the age of 60 years can claim deduction up to Rs. 25,000; whereas, senior citizens (above the age of 60 years) can claim deduction up to Rs. 50,000.
  • 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.
  • The personal accident insurance coverage is available only to the insured and cannot be extended to the other family members.

What Does Personal Accident Insurance Cover

The personal accident insurance plan covers the policyholder for the following things -

1.Accidental Death:

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

2.Permanent Total Disablement:

If the insured is left with permanent total disablement due to the accident, the policy pays the entire sum assured amount to them.

3.Permanent Partial Disablement:

If the insured suffers from permanent partial disablement, a specific percentage of the sum assured is paid to them.

4.Temporary Total Disablement:

The policy also offers weekly benefits to the insured for a temporary period in case the insured suffers from temporary total disablement.

Benefits of Personal Accident Insurance

As explained earlier, the personal accident insurance plan is known to cover the insured and the dependents against unforeseen events. Besides, the policy provides the following benefits -

  • The dependent children will receive a lump sum benefit in case the insured dies or suffers permanent disablement in the accident. This amount can be used to cover the education costs of the children.
  • The policy covers the expenses incurred on arranging the funeral of the insured.
  • The policy covers the hospitalisation and treatment costs of the insured.
  • The charges incurred on transporting the mortal remains of the insured from the site of the accident to the hospital/their home is also covered under the plan.
  • The policy also pays the ambulance charges.
  • If the insured suffers from income loss during his/her recovery after the accident, the policy pays a lump sum benefit.
  • Most plans also cover accidents occurring due to adventure sports at an additional premium cost.

Things to Know about Personal Accident Policy

If you are planning to buy a personal accident plan in India, note the following things about the policy -

  • The policy compensates in case the insured dies or suffers total disablement 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 hospitalization, you can buy a health insurance plan at Finserv MARKETS online. Here, you can also extend the coverage of your health plan to cover for hospitalization, 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 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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