Personal accident insurance plan provides coverage in case of a road accident. It provides income replacement in case the policyholder can’t work due to any disability. This cover provides comprehensive insurance coverage to the policyholder.
As per a survey conducted in 2016 by Transport Research wing under Ministry of Road Transport & Highways, Government of India, more people die due to road accidents as compared to deadly diseases like cancer. India tops the list of the highest number of deaths due to road accidents. In such a scenario, owning an accident insurance policy is a must.
If you meet with an accident and you succumb to the injuries, your life insurance policy will be helpful in providing financial assistance to your family. If you own a health insurance plan, it will cover hospitalisation expenses. But, what if the accident results in a permanent or temporary disability that restrains you from performing daily activities? The situation becomes worse if you’re the sole bread-winner of the family. How will your family survive without income?
Here is where a personal protect cover comes into the picture.
The benefits of having Accident Insurance policy are:
To understand this, let us take an example, suppose the insured is in a hospital that is approximately 25 kms away from his/her home. The family members have to bear certain expenses to reach to the hospital. The insurance reimburses these transportation expenses.
|Plan Name||Entry Age||Plan Tenure||Sum Insured (Rs.)||Benefits Offered|
|Apollo Munich Individual Personal Accident Insurance||Premium Plan
Minimum: 91 days
Maximum: 69 years
Minimum: 91 days
Maximum: 69 years
|1 year||1 lakh-5 lakh|
|Bharti AXA Smart Individual||18-70 years||1 year||10 lakh/20 lakh/ 30 lakh||
|Religare Secure Personal Accident Insurance||24-70 years
Children-from 91 days
|1/2/3||10 lakh-50 lakh||
|Bajaj Allianz Premium Personal Guard Plan||18 years-65 years
Children from 5 years to 21 years
|HDFC Ergo Personal Accident Insurance||Anyone below 65 years||1 year||2.5lakh/5lakh/7.5lakh/10lakh
|Star Health Accident Care Individual Insurance||18-70 years
Children from 5 months-25 years
|1 year||5 lakh/10 lakh/15 lakh||
|Oriental Janata Personal Accident Policy||10-80 years||1 year||25000-5,00,000||
|Reliance Personal Accident Policy||5-70 years||1 year||20 lakh||
|New India Personal Accident Policy||5 years -70 years||
An accidental plan provides financial compensation in the event of bodily injury, disability or death of the policyholder. Some insurers cover hospitalisation expenses as well. In case of death, personal accident insurance policy provides 100% of the sum insured to the nominee. In case of permanent total disability, temporary total disability and partial disability, income replacement benefit is provided.
The various types of Personal Accident Insurance are:
Personal accident plans offer a variety of coverage to protect your finances. Here is the basic insurance coverage:
|Accidental Death||100% coverage or sum assured is offered in case of insured’s death due to an accident. With this benefit, the policyholder can secure the financial future of his/her family in case of his/her demise.|
|Loss of Two Eyes or Two Limbs||Due to an accident, if the insured losses both limbs or both eyes or one limb and an eye, then the insurance company will provide 100% coverage.|
|Loss of one limb or one eye||If the insured meets with an accident that results in the loss of one limb or loss of an eye, 50% of the sum assured is paid by the insurance company.|
|Permanent Total Disability||If an accident results in total disability, due to which the insured person is unable to earn the income, the insurance company provides the entire opted sum assured for survival.|
|Permanent Partial Disability||In case of permanent partial disability due to an accident, i.e. loss of toes, loss of hearing ability, loss fingers etc., pre-decided insurance coverage is provided.|
|Temporary Disability||It compensates the insured against any temporary disability in case of permanent partial disability due to an accident that makes the person unable to work for a certain time.|
Thus, the best accidental insurance plan in India will help the dependent family to handle the emotional turmoil better by offering the much-needed monetary assistance during any of such hardships.
While personal accidental plan offers wide coverage, the following are the situations that are not covered.
|Self-inflicted Injury||Any injury with the intention to harm or damage to self-such as attempted suicide, suicide, involvement in criminal activities, riots, civil commotion, non-compliance etc.|
|Consumption of Intoxicants||Any injury caused due to driving under the influence of alcohol, drugs or other such substances.|
|Participation in Adventure Sports||Any injury caused due to participation in adventurous activities, adventurous sports etc.|
|Outdated Claims||Any claim that is filed after the end of claim filing period.|
|Pre-existing Injury||Pre-existing injuries, infections and illnesses caused due to childbirth.|
Apart from the basic coverage, the personal accidental insurance plan also provides the additional coverage:
The claim process must be followed step-by-step. In order to experience a smooth claim process, one must understand the entire process and file the claim accordingly.
The first thing to do after an accident is intimating the insurance company as soon as possible.
The next step is to duly file the claim and attach necessary documents. Keep the below information handy at the time of filing the claim:
Make sure your family members know about all related information of the policy so that they don’t face any problem dealing with these in your absence.
The next step is to submit the claim form.
Note- Make sure your family members know about all the policy related information so that they don’t face any problem filing the claim.
The policy coverage is decided on the basis of the policyholder’s insurance expectations. The policy coverage may vary from insurer to insurer or plan to plan. Insurer’s underwriting policy also determines the coverage. Usually, an individual gets a sum assured of 2 to 8 times his/her annual income.
Premium is the amount that the policyholder has to pay in order to avail the policy benefits. With the help of personal accident insurance premium calculator, you can calculate the insurance by filing up the required information.
Usually, the insurer categorises individuals into 3 risk groups. On the basis of risk exposure, the premium is calculated. The groups are as given below:
|Risk Group I||Risk Group II||Risk Group III|
|Persons with a sedentary occupation or those who are less exposed to risks. Doctors, lawyers, bankers, accountants etc. come under this group.||This group caters to the people who perform outdoor tasks and are also exposed to higher risk factors. Engineers, chauffeurs, builders, contractors etc. are included in this group.||Those who come under this group have hazardous occupations with a high level of risk. Those who work in mines, circus performers, electrical workers, racers etc. come under this group.|
Most people don’t know much about personal accident cover. They think having health insurance or life insurance is enough. Personal accident insurance is a necessary insurance product that ensures peace of mind amidst uncertainty. However, before zeroing on one, compare various personal accident insurance plans online.
Ans: A personal accident insurance protects the finances of an insured by giving lump-sum compensation in case of fatal accidents or one that disables the insured permanently.
Ans: A life insurance plan provides death benefits to the nominee of the insured in case he/she passes away. A health insurance plan compensates and/or reimburses in case of hospitalization or other medical expenses.
However, a personal accident insurance, on the other hand, protects an insured against financial risks that could arise because of permanent total or partial disability due to an accident or accidental death of the insured. In this way, this policy is necessary to strengthen the financial portfolio of an insured and provide financial security to his/her entire family against any unforeseen situations.
Ans: No, the premiums are not that high for personal accident insurance policies. For example, if you opt for an accidental insurance policy of Rs.5 lakh with the duration of 1 year, then the premium that you need to pay for the same is somewhere near Rs.610.
Ans: You can avail of this optional feature by paying the extra premium. Usually, a hospitalization after an accident covers reimbursement against hospitalization medical expenses and sometimes daily cash cover is also given to you during the hospitalization.
Ans: Yes, most of the personal accident insurance policies provide worldwide coverage. In this way, you will get the reimbursement or your claim will be paid even if you are outside India and met with an accident there.
Ans: Accidents can happen to anyone and at any time. Accidents due to natural calamities, motor accident, or rail accident, etc. can occur to anybody. Therefore, opting for a personal accident insurance is useful for all.
Ans: A child above the age of 5 years and an adult up to the age of 65 years are eligible to purchase a personal accident insurance plan.
Ans: The list of documents required in the claim process:
Ans: Yes, and for the same, all one needs to do is to mention the name of the nominee on the policy document. The sum insured will be paid to the nominee in case of accidental death.