Personal accident insurance is a policy that offers financial protection to the insured against eventualities such as partial or total disability and accidental death or injuries. In case of the unfortunate death of the policyholder, the nominee is given compensation by the insurance company. This policy covers all the medical expenses arising due to an accidental emergency.
Uncertainties such as accidents can lead to a financial crisis. That is why personal accident insurance is suggested to get the necessary assistance against an accident. In this article, we understand everything you need to know about personal accident insurance.
What is a Personal Accident Insurance?
When we sense danger, we tend to prepare a plan to avoid it. Going on the road with heavy traffic and hurrying vehicles can make driving stressful. Imagine a fast-moving truck hitting a car and consequently hurting the driver. The damage can be huge and may even cost the driver’s life. Due to all this, having personal accident insurance becomes important to provide the driver with financial aid in any accidental emergencies.
Personal accident insurance pays compensation for accidental death, injuries, and permanent/partial disability. IRDAI has defined a percentage of the coverage for different accidental cases.
Types of Personal Accident Insurance
Personal accident insurance can be majorly divided into two categories. Here are the two variants of personal accident insurance: -
- Individual Accident Insurance
Under individual accident insurance, the policy protects the insured from any kind of accidental damage. This type of personal accident insurance may cover permanent disabilities, accidental death, or loss of limbs or sight resulting from an accident.
- Group Accident Insurance
Group accident insurance is generally taken by employers to provide coverage to their employees. Based on the size of the group, insurance companies may offer a discount on the premium amount. It is a good added advantage for small-scale organizations as this policy is available at a lower cost. Keep in mind that this is the most basic plan and may provide limited benefits when compared to individual personal accident insurance plans.
Benefits of Personal Accident Insurance
We all know the benefits of health insurance but do know that personal accident insurance can turn out to be very useful in dealing with emergency situations on the road. Here are some of the key advantages of buying this insurance policy: -
- Secures the financial future of the family.
- No pre-medical screening is required to buy the policy.
- It offers worldwide coverage.
- Personal accident insurance offers high coverage at a lower premium rate.
- The claim process is free of hassles.
- This policy offers a 24x7 support service.
- The plan can be customized as per your requirements.
- It also covers the funeral and legal expenses.
Features of Personal Accident Insurance
Here are some of the key features of personal accident insurance: -
- Financial Security
With this plan’s coverage, you can secure the financial future of your family. It will take care of all the financial liabilities resulting from an accident.
- Medical Cover
This policy provides coverage against all medical expenses arising due to the treatment of the accident injuries. All your medical bills will be reimbursed.
- Hospital Allowance
This plan also gives a daily allowance for a certain period of time during hospitalization in case you do not have a source of income due to the accident.
- Claim-free Bonus
Another feature of personal accident insurance is that it offers a cumulative bonus of a certain percentage for every claim-free year.
- Permanent Total Disability Coverage
In case the policyholder suffers from permanent total disability, they can get a higher compensation of the sum insured.
- Child Education Bonus
Personal accident insurance not only covers your medical expense but also funds your child’s education. In case the policyholder passes away or suffers from permanent disability, the policy pays some amount to the children who are below the age of 19 years.
Even a minor accident can impact individuals and their families. Therefore, it is essential to buy the right insurance plan to protect yourself from uncertain future events. Personal accident insurance is specially designed to offer relief to individuals in case they get injured due to a road accident.