Accidents are highly unpredictable, whether in a road accident or a high-risk work environment. The consequences of such accidents are sometimes minor but can also result in hospitalization. In some extreme cases, they may even lead to permanent or temporary disability. The last thing at such a time is not to have some financial backing to cover these costs of treatment and financial setbacks due to disability. To be prepared for these times, signing up for a personal accident insurance policy is prudent.
What is a personal accident insurance policy?
A personal accident cover is not a replacement for your standard health insurance policy. It ensures a financial safeguard against uncertainties of accidental death, injuries sustained, and any kind of disability due to an accident.
Why should you purchase a personal accident cover?
Road mishaps are one of the common reasons you should buy one, but isn’t it the only one? Considering the prevalent road conditions, accidents are prone to happen not always due to your fault but also to the negligence of others driving on the roads. A personal accident policy helps to cover the cost associated with injuries in the event of such accidents. Such a personal accident policy is handy in a high-risk work environment. Any serious injury resulting in any form of disability along with death is included under the policy scope. Thus, akin to a health insurance policy, it is paramount to have personal accident insurance.
What are the types of personal accident policies?
A personal accident plan is available in two types-
#1 Individual accident insurance: An individual accident plan provides coverage for accidents caused to an individual wherein situations like loss of limbs, loss of vision, or demise are included as a part of its scope.
#2 Group accident insurance: These personal accident plans are available one-on-one and can also be purchased for a group of beneficiaries. A common use case is employers insuring the lives of their employees. However, since these plans are targeted to cover many people simultaneously, they have limited features and provide basic coverage.
What coverage forms part of such personal accident insurance?
The following are instances covered under personal accident insurance –
- Accidental Death Cover: With unintentional death coverage, the policy pays a pre-decided amount of compensation to the nominees in the event of the policyholder’s death.
- Permanent Disability Cover: An accident resulting in a permanent disability may lead to income loss. Such personal accident cover ensures these disabilities do not cause a financial setback and pays a pre-agreed amount in the event of such a permanent disability.
- Permanent Partial Disability Cover: Under such policy terms, an accident resulting in permanent partial disability is covered with 100% of the sum assured.
- Temporary Disability Cover: A milder consequence of accidents can be a partial disability. With such personal accident coverage, temporary income loss due to such partial disability can be insured.
These personal accident plans also come with additional coverage for which a health insurance premium calculator can be used to assess its impact on the premium. To conclude, if you work in such a risky work environment, Oare r is always on the move. You should ensure your family’s safety with such personal accident cover. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
