What is a personal accident cover?

Personal accident cover secures you financially from the tragic events that occur as a result of accidents and also contributes to recovering the loss of income. This insurance covers the medical consequences of any disastrous occurrences caused by road, rail, and aviation accidents, or by fatalities, fires, explosions, collisions, and other mishaps. The insurance also pays you financially if you become disabled as a result of accidents and are unable to work. As a result, the insurance also provides a monthly income to assist you in carrying on with your life.

Why is it important?

Accidents are always sudden. Even the safest of drivers might be involved in an accident caused due to the negligence of the other person. If your work demands you to travel frequently, you must protect yourself with a good personal accident cover. Apart from road accidents, mishaps can also happen at one’s workplace. If you operate in a high-risk work environment such as a factory or a plant where you may be required to deal with heavy machinery, you are more prone to work-related accidents. Such mishaps can result in serious physical damage, and in extreme circumstances, even death. As a result, having a Personal Accident Policy is highly advised.

Some other benefits of investing in a good personal accident cover are listed below:

• Financial stability for your family
• Tests or documentation are taken care of
• Extensive coverage at discounted prices
• Global coverage
• A simple and straightforward claim process
• Support centers are available 24/7
• You can customize the policy to meet your unique requirements.

What are the types of personal accident covers?

Individual Personal Accident Insurance and Group Personal Accident Insurance are the two primary categories of personal accident insurance.

• Individual personal accident cover

The type is provided to single individuals and it provides more coverage than group insurance. It includes not just death but also short-term and long-term impairment caused by accidents, such as vision loss, limb loss, or organ failure.

• Group personal accident cover

Employers typically offer group accident insurance to their employees since these plans are given at a discounted rate based on the company’s financial status. However, these plans are basic and offer limited features.

What is covered under personal accident cover?

• Death 

In the event of the policyholder’s death, the sum promised will be paid to the nominee. The policyholder’s family will receive a lump-sum payment based on the predetermined amount.

• Permanent disability 

A pre-agreed sum will be paid to the insured if an accident results in permanent disability. This could be related to the loss of limbs, fingers, sight, irreversible paralysis, and/or loss of other important bodily functions.

• Partial disability 

If the insured suffers permanent partial damage as a result of the accident, he or she will be entitled to the entire sum promised. This could be related to loss of toes or any one limb. 

• Temporary total disability

If the insured is involved in an accident that renders him or her bedridden for an extended period of time, the policyholder will be paid a predetermined sum. 

• Other conditional coverages

Some insurance companies provide coverage for injuries caused as a result of terrorism. In certain circumstances, a specific sum of money is given towards the education of the policyholder’s child/children. When a patient suffers from deformity as a result of an accident, cosmetic or corrective surgery may also be covered. Some insurance companies also cover the funeral and legal costs incurred on death. 

What are the exclusions from claiming Personal Accident Insurance?  

Individuals and policyholders should be aware of the Personal Accident Insurance Policy’s exclusions and inclusions before purchasing it. In the case of the following conditions, one cannot claim the benefits of a Personal Accident Policy.

• Suicide attempt on purpose
• Pre-existing injuries or disabilities
• Accidents caused by the influence of drugs and alcohol
• Pregnancy or childbirth
• Participating in risky and dangerous sports
• Treatments that are not allopathic
• Having a criminal record or suffering from a mental illness

What should you consider before buying a personal accident cover?

It is critical to set aside adequate time to research the insurance you wish to purchase. This will ensure that enough coverage is accessible in the event of a medical emergency or a sudden accident. Here are some pointers that you need to keep in mind before investing in an accident insurance policy:

• Understand your requirements and risks: 

Always get a health insurance plan that meets your needs.

• Determine the amount of sum insured:

Look for a plan that gives a sufficient sum insured in the event of a claim.

• Shortlist the right insurance plans and providers: 

Comparing Personal Accident coverage from several insurance providers will assist you in locating the finest policy at the lowest cost.

• Seek advice from an expert investment planner: 

It is always a great decision to reach out to professionals because they can guide you perfectly in every aspect of the decision.

Summary

The most essential benefit of purchasing a Personal Accident Insurance Policy is that the policyholder may rest confident that if he or she is unable to provide for their family, the insurance provider would assist them financially. 

Every individual’s need for a personal accident policy may differ based on factors such as income, risks, dependents, occupation, traveling frequency, etc. Choosing the right product for your and your family’s requirements is a huge, and crucial task. Taking help from an expert financial advisor will make this journey a cakewalk. Reach out to me for further information.

PS. Is Your Insurance Policy Safeguarded under MWP Act? Find out why it’s important!