April 22, 2024

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Some Common Concerns Addressed About Personal Accident Insurance Cover

Accident Insurance

Accident Insurance

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An accident can happen in any place or at any time. There is often no warning of any little danger that you would face. In many cases, these accidents can cause a lot of harm to you. In addition to the physical injuries, accidents can have a major financial impact on you as well. Firstly, you would need treatment right after the accidents. Depending on the injury, the treatment can be extremely expensive. In extreme cases, accidents can also leave you disabled. This can have a long-lasting effect on your finances by impacting your income. In this case, you have to protect yourself and your family from any situation like this. For this, you can buy a personal accident insurance policy.

What is a personal accident insurance policy?

A personal accident insurance policy is an extension of health insurance plans that is helpful in getting you and your family the necessary financial assistance in the case of an accident. This applies to accidents that can lead to death, physical injuries, permanent partial disability, temporary total disability, or permanent total disability. In the case of the death of the policyholder, the insurance company will give the family a pay-out of the entire coverage of the policy. This is known as the policy’s sum assured. * Standard T&C Apply

What are the types of personal accident insurance?

Usually, personal accident insurance can differ on the basis of the coverage that a policyholder selects. However, the official categorization within personal accident insurance is based on how many people are covered under the plan. Hence, it can be classified into these two categories:

Individual personal accident insurance

As the name of the policy might suggest, the plan is purchased by a single individual and it covers the policyholder and their family against the financial effects of accidental injuries, disabilities or death.

Group personal accident insurance 

Usually, it is business owners and employers that buy group personal accident insurance. They buy it to offer coverage to their employees. Depending on how big the organization is and how many people are employed there, insurance providers tend to offer employers a discount on premium. A group personal accident policy assures employees that they are financially safe in the event that some mishap occurs at the workplace.

What is covered under personal accident insurance?

  • Permanent total disability

If the policyholder becomes completely disabled permanently, the policy will cover them. The disability should be beyond the ability of being treated with medicine. If the claim is approved, the policyholder will get the right amount as a pay-out. This amount can be different for different people as their policies can have a varying set of guidelines. Even if the disability was not permanent at the time of the accident but later become permanent, the policyholder will receive the benefits.

  • Permanent partial disability

If the policyholder becomes permanently partially disabled and is beyond the condition of being healed by any medicine or treatment, then the insurance company will cover the financial difficulties that arise out of that.

  • Temporary total disability

Depending on the personal accident insurance policy, a policyholder could have coverage for temporary total disability. As per this coverage, if the policyholder becomes completely disabled for a short amount of time, they can claim the right amount as a pay-out. Type of disabilities that come under this coverage are the ones that can be eliminated through treatment or medicine.

  • Accidental death

If the policyholder dies an untimely death due to an accident, the nominee of the policy will receive the benefits set at the time of buying the policy. This ensures that your family is covered against financial insecurity.

* Standard T&C Apply

These are some of the must-knows about a personal accident insurance. While the regulator allows for insurers to offer their own personal accident covers, a Saral Suraksha Bima plan can also be purchased which is a standardised coverage offered by all general and health insurance companies.

Please note insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.