Benefits of Personal Accident Insurance

An accident is an unfortunate event that can happen anywhere, anytime and may result in minor to major injuries. Any such uncertain incident can lead to financial crises. A Personal Accident Insurance cover provides complete financial protection to the policyholder against uncertainties such as accidental bodily injury, accidental death, total or partial disabilities, temporary and permanent disabilities resulting from an accident.

The number of accidents in India is increasing at an alarming rate. It is better to be safe than sorry! Having a personal accident insurance policy provides the much-needed financial cushion against such incidents.

A personal accident insurance policy is suitable for every individual across different age groups, occupations, health conditions, etc. Therefore, everyone should avail a personal accident cover. Such an insurance policy is especially necessary for those who have loans against their names. This is because many personal accident insurance plans offer repayment benefits to the insured who have mortgages or loans.

Below is the list of ten reasons why one should have personal accident insurance.

1. Accidental death benefit

One of the significant benefits of having a personal health insurance policy is that it provides compensation of up to 100% of sum assured in case an accident leads to disability or death of the insured.

2. Permanent total disability benefit

The personal health insurance policy covers the bodily injury that prevents you from engaging in any kind of profession. The total and permanent disability such as loss of limbs or both eyes is covered with the pay-out of the sum insured. Medical emergencies and loss of income may lead to a financial crisis; however, a personal accident insurance plan saves your hard-earned income and foster financial stability against the expenses arising out of unexpected occurrences.

3. Permanent partial disability

An accident might result in loss of one eye, knee injury, nerve damage etc. In such cases, the body injury that results in total loss of any body part or sensory organ is covered under a personal accident insurance policy. In case the insured loses any body part, he can file the claim and the insurance company will compensate for the loss.

4. Add-on to health insurance or motor insurance policy

Health insurance and life insurance plans allow you to add personal accident insurance cover to the basic plan. You can enhance the coverage and make your insurance portfolio robust in order to avoid any eventuality. You can add an accidental cover to your existing motor insurance policy to enhance the benefits of your motor insurance plan.

5. Cost-effective

The premium of personal accident insurance policy is very low and affordable. For instance, a 30-year old male applicant buying an independent accident cover of Rs. 10 lakhs, which also covers partial and permanent disabilities, will have to pay a premium less than Rs. 1000 per year. However, the premium amount may differ according to the sum insured, insurance company and the plan chosen.

6. Additional benefits

You can cover additional costs such as OPD in case of fracture and accidental medical expenses in a personal accident insurance plan. The policy also comes with lifetime renewability. Moreover, expenses covered for an ambulance, accidental emergency hospitalisation, etc. makes this plan a perfect financial risk mitigating solution.

7. Family security

Being disabled due to an accident affects employability and the income flow of the insured. Personal accident insurance policy aids family members by providing complete financial security against accidental risks. The policy provides great financial support from loss of income. It also helps the family from the impact of hospital expenses.

8. Child education benefit

Some insurance companies provide education expenses of children under child education plan, in case of death or permanent disability of the insured. The insurance company shall be liable to pay an education grant for the dependent children, say Rs. 10,000 per child, up to 2 children. This is an extensive benefit of personal accident insurance policy which makes it more appealing and beneficial for the insured and his family.

9. Easy claim settlement

Claim settlement process for personal accident insurance policy remains simple, and hassle-free. You just need to intimate the insurance company about the details of the event such as time and date of the accident, contact details, policy number, and the details of the insured. Once all this information is provided to the company, it will initiate the claim settlement process without any delay.

10. No medical test

Personal accident insurance cover is a simple insurance product and involves minimum information and paperwork. Moreover, customers are not required to undergo any medical test while availing this cover. You can also buy this policy online, where you just have to fill an application form and make the premium payment. The insurance company will issue the policy once the payment is made.

It is important to note that the term "Accident" can be confusing at times as different insurance providers offer plans that may slightly differ. It is advisable to go through the policy wording while buying a personal accident insurance policy to know the exact coverage of the policy.

Logically, we all know that an unfortunate accident can happen to anyone. But the fear fires a denial reaction, and we end up thinking that it will never happen to us. However, if we think practically, there is a fair chance that it can happen to anyone. Accidents may sometimes lead to a spectrum of outcomes, right from a minor injury to major disability or even death.

As an adult, we have the ability to think practically and secure our future, if given a chance. Hence, it is wise for everyone who is at risk of meeting with an accident, which is everyone.

Recommended Link: Do you need a Personal Accident Policy?