Personal accident insurance policy offers compensation in case of death, partial or total disability or mutilation resulting from an accident.
Personal accident insurance policy is equally important as compared to life insurance and health cover. For instance, let us assume that a person meets with a road accident which causes a disability and due to this incident the disabled person is not able to work for a longer period of time. In this type of situation, term plan of life insurance will not help him or his family member as the policy holder is very much alive. Health insurance will only take care of hospital bills.
However, in case of personal accident insurance policy, compensation will be paid for accidentally death, permanent total disablement, broken bones and burns. In addition to this, policy holder can also claim assistance for hospitalization up to a specific period due to illness and accident. Ambulance expenses are also covered.
Some insurers like Bharati AXA, offers Personal Accident policy to cover even minor injury happening in our daily life such as getting burnt while cooking or kids getting injured at school or slipping down from stairs, double Indemnity for Accidental Death or Permanent total disability while traveling as a passenger in a public conveyance.
LIC and Health policies are also offering accidental benefit riders, but these riders are not as comprehensive as a standalone Personal Accident Insurance policy.
Things to remember while taking Personal Accident Insurance Policy
Premium to be paid for a personal accident insurance policy depends upon the nature and scope of the coverage. We suggest you not buy a policy with low premium which does not cover you from the risk that may lead to accidents at home or at work place.
Reputation of the insurer and its claim settlement record is another important factor which you must look in before choosing a policy.
Make sure that it also has worldwide coverage. This means your personal accident insurance policy must also protect you when you are traveling abroad.
You need to remember that certain events which lead to accident are not covered by these policies. Here are the lists of those events;
- Intentional injury like suicide or attempted suicide
- Injuries due to war
- Accident occurred while the victim is under the influence of alcohol or drugs etc
In addition to above events, these policies generally have following exclusions;
- Any pre-existing disability or accidental injury
- Pregnancy or child birth
- Venereal Disease, AIDS or insanity
- War and nuclear risk, terrorism, criminal acts etc.
- Breach of law with criminal intention.
- Armed Forces (Army / Navy / Air Force) or Para-military Forces (BSF / RAF / CRPF)
- Professional sports persons
- Hazardous sports like Bungee jumping, Paragliding, Jet Skiing, etc
- Merchant Navy
- Airline Pilots / crew members
- Electrical Installations
- High Tension Lines
- Off-shore workers working on Oil Rigs, Drilling Platforms, etc
List of events generally covered in Personal Accident Insurance Policy
In general a personal accident insurance policy needs no documentation, no medical tests and available for ages between 18 years to 65 years. Insurers like HDFC ERGO and Appolo Munich even allow maximum age limit of up to 69 years. Here are the lists of events that generally covered by insurers;
- Medical expenses due to illness and accident for a specific period
- Accidental death
- Legal expenses
- Compensation for permanent or partial disablement or temporary total disablement
- Ambulance expenses
- Funeral expenses
- Education benefits – education cost of dependent children is covered up to specified limits.
- Employment benefits – loss of employment of the Insured following an accident resulting in loss of limbs/eyes or permanent total disablement.
Generally self, spouse and two dependent children between the ages of 3 months to 21 years are covered under the policy. However, we suggest you to look into these factors while taking your policy.
Main objective of having a personal accident policy is to protect and compensate your family members and yourself from the financial concerns such as loss of income and medical expenses that unforeseen accidents lead to.
Accidents are unpredictable and can result in permanent disability, partial disablement or irreparable damage. Thus it is advisable for every individual to be insured with a Personal accident insurance policy.