What Coverage Does a Personal Accident Insurance Policy Offer?

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Accidents are highly unpredictable, be it a road accident or in a high-risk work environment. The consequences of such accidents at times are minor but can also result in hospitalization. In some extreme cases, it may even lead to disability, permanent or temporary. The last thing at such 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 a prudent choice.

Personal Accident Insurance

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 the only one. Considering the prevalent road conditions, accidents are prone to happen not always due to your fault but also due 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 comes in handy in the case you work 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 not only available on a one-on-one basis but can also be purchased for a group of beneficiaries. A common use case is where employers insure the life of their employees. But since these plans are targeted to cover many people at once, 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 an accidental 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 loss of income. Such personal accident cover ensures these disabilities do not cause a financial setback and pay a pre-agreed amount in the event of such permanent disability.
  • Permanent Partial Disability Cover: An accident resulting in partial disability forever is covered under such policy terms 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 loss of income 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 or always on the move, it is advisable to 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.

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