WHAT IS PERSONAL ACCIDENT INSURANCE

Insurance covers are very fundamental and necessary to prepare for a bad phase in an individual's life. Even a minor injury can cost you a significant sum of money. So, being prepared for the worst is one of the most fundamental aspects for sustaining your hard-earned money. Moreover, Personal Accident Insurance is just the safeguard you need to have.

 

What Should A Personal Accident Insurance Cover?

You are highly encouraged to choose a personal accident cover plan that covers the following instances. Now, some of these might seem a little far-fetched to you considering your regular life. But, it is always better to be safe than sorry.

  • Accidental Death: Almost every personal accident insurance covers accidental death. In case the policyholder is deceased due to an accident, his/her nominees receive a compensation between 5 lakh to 1 crore depending on the type of policy for a secured future.
  • Accidental Disability (Partial/Total): Accidents can also cause severe disability based on the intensity of damage. There are basically two types of disabilities that are partial and total. Total disability refers to complete damage to a particular body part, whereas partial disability means severe damage that reduces the functionality of the organ. An accidental insurance should cover you for both instances.
  • Accidental Dismemberment: Some accidents are more brutal in nature which causes permanent dismemberment of body parts. It includes loss of fingers, arms, legs, sight, and permanent paralysis. A policy that covers all of these factors should be preferred.
  • Hospitalization expenses: In most cases, accident victims need to be hospitalized immediately, and they are kept under observation until they are recovered completely. This causes quite an expensive hospital bill which is covered by the policy on a daily basis.
  • Additional Benefits: There are a few policies that offer a handful of additional benefits, such as educational and employment benefits that are essential for both the policyholder as well as the nominees of the policyholder.  An important additional benefit is the transportation benefit that covers the expenses for travelling of the family members. Generally, you would get up to Rs. 50000 cover for transportation which is enough for travelling from any point in the country.
  • Grace Period: You might change your mind after applying for a policy due to many reasons. Thus, having a grace period of 15 to 30 days allows you to carefully consider all of the aspects covered by the personal accident policy and cancel or change some parameters if required.
  • Act of Terrorism: A personal accidental insurance should cover any injuries or loss caused by an act of terrorism. Act of terrorism is a completely unpredictable instance, and there is no telling if or when it will take place.
  • Exclusions: Apart from the facts that are considered in the policy, you should also examine the aspects that are not backed by the insurance company. Generally, it includes acts of war, existing disabilities at the time of registration, physical or mental disorders, and intentional or unintentional damage caused by the consent of the policyholder. Keep in mind that most insurance policies do not cover damage caused by adventure sports.

 

Types of Personal Accident Insurance Policies

1. Individual Accident Insurance

Individual Accident Insurance is a financial cover that is offered to an individual. This is best for independently employed, salaried people and people who are occupied with a business. Specific backup plans likewise give an instruction advantage as a feature of the approach. You can also avail the individual educational perks that come along with this policy.

2. Group Accident Insurance

This Accident Insurance scheme is mainly used and acquired by employers to get a cover for their employees. As a result, a group personal accident insurance is highly adequate for public sectors where many employees work daily. Given the number of accidents around a workplace, a group personal accident insurance policy is fundamental and necessary.

 

Some Key Features of Personal Accident Insurance Policies

  1. A secure accidental cover for all health risks

A personal accident policy gives cover if there should arise an occurrence of a tragic occasion of the death of the person who has applied for this scheme. The candidate is qualified for the total sum of money in such an event. 

  1. Low-cost premiums that amount to a hefty cover

The costs associated with managing the premiums of Personal Accident Loans are meager, and so, it does not act as a burden over your head. However, if something unfortunate were to happen, you can have a substantial sum of money.

  1. Personal Accident Insurances are highly flexible

The personal accident insurance online schemes are very flexible and have perks for different job titles as well. For instance, if you work in a chemical industry or factory, you will be compensated with financial stability if you happen to be involved in an accident that indulges fire.

  1. A secure future for those who depend on you

If a misfortunate event takes place, your loved ones, such as your immediate family, will suffer the consequences as well. Personal accident insurances are necessary to ensure that your family members and children are financially secured even if you cannot provide for them. 

 

Eligibility Criteria for Being Granted Personal Accident Insurance?

It is often highly recommended that people entitled to a risky job profile should most definitely opt for accident insurance. However, even if your job is not mainly a risky one even then you can opt for coverage if you satisfy the following credentials:

  • If your age is 18 years or above.
  • If you are below the age of 65 years.
  • To avail of the Group Accidental Insurance policy, you must be employed.

Moreover, the minimum age to buy the policy is generally 18 years. However, some companies offer their personal accident insurance plans to children whose age is as low as five years. 

 

FAQs about Personal Accident Insurance

Q1. Does every personal accident insurance policy provide worldwide coverage?

Ans. Yes. If you have subscribed to a personal accident insurance policy, it is valid no matter what part of the world you are working in currently. 

Q2. Is a medical screening necessary to be granted a personal accident plan? 

Ans. You do not need to appear for medical screenings or any relevant tests to opt for personal accident finance.

Q3. Is a personal accident insurance policy necessary for people who work in a safe environment?

Ans. Although most of the people who serve desk jobs are relatively safer than the employees who have an on-site position. However, it is better not to take any chances as an emergency might occur at any point. Thus, it is better to play it safe and opt for a personal accident plan.

Q4. What are the causes viable to withdraw the total personal accident amount?

Ans. Personal accident policies are only valid when there is a mishap caused due to an accident. No other reasons for death or illness are entertained to revoke the insured amount.

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