Why you need a personal accident insurance cover

Published: April 2, 2019 1:08:55 AM

A personal accident policy plugs a burning hole in the overall insurance portfolio to provide the policyholder with financial support in the aftermath of an accident.

The policy compensates to make such necessary alterations in his home and vehicle to facilitate easy movement.

By Parag Ved 

With erratic lifestyles and hectic schedules, people are racing against time which can come to a screeching halt in the event of unforeseen circumstances. Today, as we step out on the road, we pretty much carry our heart up our sleeves, quite literally, as the odds of running into a fatal accident are far higher than ever, given the worsening condition of Indian roads.

In this alarming scenario, an individual personal accident insurance is your best bet for financial support. It is highly pocket-friendly and flexible. One can buy `10 lakh of accidental cover for a premium of `800 to `1,500 per year, basis specific product benefits and insurer brand reliability.

Personal accident schemes cover the policyholder against death or disability caused due to an accident. Apart from the basic death cover, one can buy additional protection against partial and total disability; loss of earnings pertaining to occupation due to a temporary impairment in the aftermath of an accident can also be covered. There is an option to cover the family as well.

A personal accident policy plugs a burning hole in the overall insurance portfolio to provide the policyholder with financial support in the aftermath of an accident. Let’s see how it helps in your financial planning portfolio:

Disability cover

If the policyholder is completely or partially disabled after an accident, then this type of policy will assist him with financial support regardless of the type of injury. In the event of the policyholder’s demise in an accident, his nominee gets accidental death compensation benefits.

Emergency accident medical expense

Following an accident, the victim needs immediate medical attention and personal accident policy provides coverage for hospital bills, medical treatment that are not due to a pre-existing condition, as well as expenses like repatriation charges, funeral expenses in the event of policyholder’s demise, and ambulance charges.

Compensation for loss of income

If the policyholder suffers a fracture or a disability such as loss of eyesight, speech, or hearing impairment, the policy compensates for the loss of income. If a person suffers temporary total disability, then the insurer will grant a weekly benefit.

Children education benefits

Personal accident insurance ensures that education expenses of victim’s children are not impacted as it provides an education benefit for the children amounting to 10% of the principal sum insured or the actual tuition fee charged by the institution, whichever is lower.

Modification allowance

Due to the accident, if the policyholder gets paralysed and bound to a wheelchair, he may require structural adjustments to accommodate and ease his movement. The policy compensates to make such necessary alterations in his home and vehicle to facilitate easy movement.

Family transportation

If the insured person is confined in a hospital outside 150 km of his home, the immediate family member will incur certain transportation expenses to reach the hospital. This insurance will reimburse these expenses up to a certain limit.

Before deciding on the personal accident cover, check the policy exclusions and options such as free-look period of 15 days and 30-day grace period of policy renewal. Buy the policy from a reputed insurer with an exemplary track record in service delivery and superior claim settlement.

The writer is EVP, Consumer Lines,
Tata AIG General Insurance Co. Ltd

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