Human life is uncertain. You never know what will happen to you the next moment. However, one cannot stop living and enjoying every moment of life. Imagine you are going somewhere with your partner, but suddenly you meet with an accident. The moment of joy suddenly turns into a moment of grief. Along with this comes the huge recovery cost of both the vehicle and yourself.

As vehicle owners and pedestrians we are always at a risk of meeting with an accident. As per the Transport Research Wing under the Ministry of Road Transport and Highways, Government of India, 17 people die on Indian roads every hour, with Delhi and Chennai termed as the most dangerous for road accidents.

One can take a wise step towards protecting oneself from such uncertain scenarios by buying a personal accident insurance plan. Personal accident insurance plans cover expenses for accidental death, disability (total or partial), hospitalization expenses, transportation of patient and family and repair of vehicle and residence. The types of events that are covered by such insurance plans are rail, road, and air. There are other miscellaneous expenses as well which might be covered under these plans.

Personal Accident covers are of 3 types:

# Individual Accident Insurance: This type of cover is beneficial for bachelors or spinsters who do not have anyone financially dependent on them.

# Group Accident Insurance: Such a cover can be taken by any employer for their employees. It is available at a low cost and discount can be availed on this type of plan depending upon the size of the group.

# Family Floater Insurance: Some insurance companies in India also offer family floater option. This type of plan is suitable for a person who has 3-4 financial dependents.

Personal Accident Plan offers following coverages:

1. Accidental Death: In case of unfortunate demise of the insured in an accident, his/her dependent/s are liable to receive the sum assured upon producing the necessary documents.

2. Permanent Total Disability: If the insured person suffers a total and permanent disability due to an accident, then he is compensated the amount as per the policy.

3. Permanent Partial Disability: If the insured person suffers a partial disability due to the accident, then he/she is compensated for the same.

4. Temporary Total Disability: In case a person is severely injured and suffers from temporary impairments as a result of an accident, then the person is liable to be compensated for the same.

5. Terrorism Act: Any injury or wound afflicted due to terrorism is also compensated under some plans.

6. Hospitalization Expenses: Such plans also cover the treatment expenses in case of hospitalization during an accident.

Benefits of Personal Accident Insurance plans

After your demise or permanent disability, it is your family that suffers the most. Unpaid bank EMIs, pending loans, day-to-day expenses crop up with no source of earning. Therefore, it is important to have a personal accident insurance cover. Listed below are the benefits that one can drive from such plans:

# Family Security

# Good coverage at low premium rates

# Choice of buying for individual or family

# No medical test or documentation required

# Easy claim process

# Legal and funeral expenses are covered

# Benefit of covering child education

# While traveling in public transport any demise or impairment caused will have double indemnity

# Highly customized plan

Personal accidental insurance is still not given the importance it deserves by many, but it is one of the most important insurance covers. One should buy this plan as soon as a person starts earning. It is advisable for people who have loans, mortgages and vehicle loans as this plan will help them repay the amount in case of any mishappening and the premium is decided on the basis of occupation rather than one’s age. Regardless of one’s age and occupation, a personal accident insurance plan is important for everyone as life is full of uncertainties.

(By Naval Goel, CEO and Founder of PolicyX.com)