Benefits & Features of Personal Accident Insurance

An accident can occur at any time without any warning, and sometimes it can cause serious harm. Any such untoward incident can have a significant impact on your finances; not only can the treatment be expensive, but if you suffer from any form of disability, it can affect your earning potential. To protect yourself and your family from such a situation, it is paramount that you purchase a personal accident insurance policy.

Personal accident insurance is useful to get the financial assistance to you and your family in the event of an accident that leads to death, bodily injuries, temporary total disability, permanent total disability and permanent partial disability. In the event of death, the insurance company will pay 100% compensation (equal to the sum assured) to the appointed nominee. Also, the insurance companies offer compensation for an accident disability such as loss of speech, limbs and eyes.

Before, we look at the different aspects of accident insurance; let us look at some alarming statistics related to it.

  • In India, reports suggest that more than 1200 accidents occur every day.
  • As per the Ministry of Road Transport and Highways, in 2017 alone, more than 4.64 lakh accidents were reported and nearly 1.47 lakh people died due to road accidents.
  • In 2018, as per the reports, there was a rise of 1.68% in the number of accidents reported.

Types of Personal Accident Insurance

The personal accident insurance can be broadly classified into two categories – Group Accident Insurance and Individual Accident Insurance.

  • Group Personal Accident Insurance  

Typically, the business owners and employers buy group personal accident insurance to cover their employees. Depending on the size of the organisation, and the number of employees, the insurance companies offer a discount on the premium. A group personal accident policy is an excellent incentive for the employees as it assures them financial safety in the event of any mishap at the workplace.

  • Individual Personal Accident Insurance

As the name suggests, it is taken by an individual and it guards the policyholders against the accidental damages. It usually covers accidental death, loss of body parts and other disabilities resulting from an accident.

Importance of Personal Accident Insurance

A lot of people ignore buying accident insurance, mainly because they don’t understand the importance of the cover. But, you must think about the safety and security of your family and how can they sustain themselves financially if something untoward happens to you. If you get involved in an accident that leads to death or disability, it would have an impact on your income. If you have any liability like home loan, it would be difficult for the family members to meet the expenses. Besides, you must also take care of the treatment cost. To avoid putting your family in such a financially distressed situation, you must invest in the best accident insurance.

Personal Accident insurance has many benefits, which are:

Peace of mind and family security

In the event of an accident that causes death or renders you disabled, it would have a significant impact on your earning potential. An accident cover will give your family financial protection in the form of accidental compensation and ensure their financial security. The insurance companies pay 100% compensation in the event of death. The family members can use the amount to pay off the liabilities (if any) and maintain the usual lifestyle. Also, it gives you the peace of mind knowing that your family will be financially secured even in your absence.

Minimal documentation

One of the significant reasons why a lot of people avoid buying insurance is that they believe the process is complicated, and it involves a lot of paper works. However, the truth is that when you purchase a personal accident insurance policy, you need not stress about the documentation. You must provide basic details in the application form, and the insurance company will issue the policy.

No medical tests required

This is another significant benefit of an accident insurance policy. Unlike the health insurance policy, where the insurance company requires you to undergo medical tests before issuing the policy, you need not take any tests.

Worldwide coverage

Most types of insurance covers have a geographical limitation, which means they do not offer compensation for any casualty that occurs outside India. But, with personal accident policy, there is no such limitation. You can be assured of getting the benefit irrespective of the location of the accident; you get worldwide coverage.

Easy Claim Process

One of the critical things that most insurance buyers look for while buying personal accident insurance is an easy claim process. No matter what type of policy you choose, the claim process is easy. You must submit an application to the insurance company (you can do this either online or offline) and once the insurance company verifies the claim, the claim amount is paid-out.

Ambulance Expenses

Most insurance companies cover the ambulance expenses to carry the injured to the hospital from the accident spot.

Just as it essential to give your family the financial protection in the event of your demise, you must also think about how they would manage in case of an accident that may lead to disability. You must be prepared for such unexpected situations with accident insurance. Make sure that you know the inclusions, exclusions and other terms and conditions of the policy before you sign the policy.
Check out the various benefits of health insurance plans for more information!

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