Personal accident insurance is a policy that offers financial protection to individuals against eventualities such as accidental death, injuries, and disabilities. In the case of accidental death, the policyholder’s nominee can get 100% compensation from the insurance company. Other compensations may include loss of eyes, speech and limbs.
Any uncertainty can lead to a financial crisis, and that is why having personal accident insurance on your side is essential. It can provide financial assistance to the insured and their family against accidental death, injuries and disabilities. There are also various rider options available which can help expand the coverage of the policy. In this article, we will understand everything you need to know about personal accident insurance, including its types and benefits.
Types of Personal Accident Insurance
Personal accident insurance can be broadly divided into two categories. Let us talk about each of them briefly: –
- Individual Accident Insurance
Individual personal accident insurance only provides financial protection to an individual against any accidental damage. The coverage may include accidental death, loss of sight or limbs, or disabilities caused due to an accident.
- Group Accident Insurance
This type of insurance is generally bought by employers to provide financial protection to their employees. The insurance companies offer discounts on premiums depending on the group size. Group accident insurance is a good incentive for small companies since it is available at a lower cost. However, it is a very basic plan that offers limited benefits when compared to the individual plan.
What is Covered Under Personal Accident Insurance?
We understand that this policy can give financial protection against future eventualities. But what exactly is covered under this insurance? Here are the coverage benefits of personal accident insurance: –
- Accidental Death Coverage
Unfortunate events such as accidents can be both financially and emotionally devastating for the family of the dependent. In case the policyholder suffers from a fatal injury, the total sum insured is paid to the nominee as per the policy document.
- Permanent// Total Disability Coverage
If the accident results in lifelong impairment or permanent disabilities such as loss of limbs, then a pre-determined amount is paid to the insured person.
- Permanent Partial Disability Coverage
In case there are bodily injuries that result in permanent disabilities, then a specific percentage of the policy benefit is paid to the policyholder.
- Temporary Total Disability
In case the policyholder is bedridden due to a temporary total disability, then the insurance company will take care of the weekly allowance to compensate for the loss of time. As a policyholder, you can use this claim amount to pay your EMIs, in caseyou suffer from a loss of earnings.
Why Should You Buy Personal Accident Insurance?
Any accident can indispose a person temporarily, while a major accident can lead to a severe impact on one’s life as week as their personal well-being. Therefore, it is imperative to have a sound insurance plan to have a safety umbrella against any such eventualities. Personal accident insurance is designed while keeping in mind the relief of the injured person of their dependents.
The policy provides compensation in case of death, impairment, or bodily injuries resulting from an accident. Also, coverage is offered for accidents while travelling through air, rail, road, or injuries caused due to collision, burn, etc.
If you don’t know what is rd, you can check it out and know that it is a good investment option that can offer guaranteed returns.
Advantages of Personal Accident Insurance
Getting hit by a motor vehicle and suffering from a permanent disability can be one of the worst situations one can go through. To deal with an emergency situation such as this, it is recommended to buy a personal accident insurance cover. Here are some of the key benefits of investing in this policy: –
- It can offer financial security to the family if the policyholder goes through an unfortunate accident.
- This policy does not require any medical tests and documentation.
- One of the most significant advantages of investing in this policy is that it offers adequate coverage at a relatively lower premium.
- The coverage offered is worldwide.
- You can choose between an individual plan or a family plan.
- The claim process for this policy is easy and free from hassles.
- This policy can be customized as per the needs of the customers.
Buying a personal accident insurance can be beneficial irrespective of your age, health, and occupation. It is a policy that can free you from financial stress in emergency situations such as an accident.
