What Does Your Personal Accident Insurance Cover?

The average person tends to look at personal accident insurance only during two occasions: while buying the policy, and when an accident happens. If you fall into this category, you may end up with the wrong kind of accident insurance. Read on and make sure you choose the policy suits your needs.

What is Personal Accident Insurance?

Personal Accident Insurance aims to reimburse you in case of injuries, and hospital bills, due to an accident. In case of fatal accidents, the policy will provide the surviving family members with a financial compensation. Another new feature in these policies is the coverage of permanent disabilities that may arise due to an accident.

Why Do You Need an Accident Insurance Policy?

A huge number of accidents take place on Indian roads every day. While some cause minor injuries others may lead to permanent physical injuries and even death. The following stats from the Global status report on road safety (2013), published by the National Crime Records Bureau, show the shocking reality of the frequency of road accidents in our country:

  • Over 1, 37,000 people were killed in road accidents in 2013 alone.
  • At least 16 children die on Indian roads every day.
  • Every four minutes, a life is lost on Indian roads.

These numbers are a testimony to the fact that the risk of suffering a dangerous accident on Indian roads is no trivial matter.

It is advisable to buy insurance as soon as you start earning a regular income. Apart from easing the stress of arranging funds to clear out medical bills, having accident insurance provides you with some additional monetary benefits. Here’s why Economic Times suggests buying an accident insurance.

Types of Accident Insurance Policies

In India, you can buy two different types of accident insurance policies:

  1. Individual policies, which are meant to be bought for individuals. These are usually more expensive but are a good choice if you live or work in places prone to accidents.
  2. Group policies, as the name suggests, are made to serve a group or an organization. These policies are an excellent benefit offered by companies to their employees. They’re relatively cheaper, but the coverage is rather limited when compared to that of individual policies.

What Does Personal Accident Insurance Cover?

Personal accident insurance tends to differ from insurer to insurer. Usually, these type of insurance policies cover the following:

  • Accidental death: The sum assured under this plan is payable to the nominee if death occurs due to an accident. Most companies take 15 days as the maximum time period for to apply for a claim under the accidental death clause.
  • Disability: This includes all disabilities caused by an accident.
  • Dismemberment: This is when a part of the body has been severed or dismembered. This means that if the policyholder loses their hand, leg or eyes in an accident, then they would be eligible to get a claim.
  • Medical expenses: These refer to the hospitalization charges and the subsequent medical bills that are a part of your treatment.
  • Terrorism: Injuries suffered due to terrorist attacks are also covered under the personal accident insurance.
  • Daily allowance during hospitalization: This is a predetermined sum of money that is given to patients who’ve been hospitalized to cover their basic expenses like food and water

Selecting the Best Policy for You:

While choosing any kind of insurance, you should research various available policies and choose the one that best suits you and your family. Ensure that your choice is based on tangible factors like claim reimbursement, premium, and coverage. ICICI Lombard’s accident insurance policy, for example, is a complete insurance plan you would need. We suggest you to research more before taking your decision.

Your occupation plays an important role when it comes to choosing a personal accident insurance plan. Based on how susceptible you are to accidents in your line of work.

Class 1 – Low Risk:

This includes accountants, doctors, lawyers, bankers, etc.

Class 2 – Medium Risk:

This includes cash carrying employees, machine workers, builders, contractors, etc.

Class 3 – High Risk:

This includes journalists, underground mine workers, explosives industry workers, mountaineers, etc.

To sum it up, a personal accidental insurance should be your number one priority, especially if you travel extensively. So be wise, choose an accidental insurance policy which perfectly suits your lifestyle and needs.