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Personal Accident Insurance policy covers you in case of an unfortunate accident that may be lethal or cause mutilation/disability. Personal accidents caused by rail/road/air accidents, accidents due to falling, collision, fire, by drowning, and other such fateful events. Personal Accident Insurance makes sure that you are covered not only with respect to medical expenses, but also for the loss of income that may occur due to the accident.
The term "accident" can be a little confusing, as different health insurance companies offer policies that may slightly differ. Here, we have grossly spelt out the major stuff for you. We urge you to go through the policy wording while buying Personal Accident Insurance Policy, to know what exactly is (and isn’t) covered.
Let’s get on with a couple of FAQs about Personal Accident Insurance Policies to know more about it.
The Accidental Death cover, which offers a pre-determined compensation to the nominee in case of an unexpected demise or impairment, ensures financial security and stability to the family of the deceased in his/her absence.
Permanent Total Disablement cover financially protects the policyholder’s family in case of his/her lifelong permanent disability.
Permanent Partial Disablement that offers a certain reimbursement to the policyholder’s family assures his/her family of financial security in the event of his/her partial impairment or injury.
A disablement of a temporary nature may lead to a temporary loss of income, resulting in confinement at home. To stop the loss of income for a short period of time, treatment of disablement and injuries also further burn a hole in the pocket of the insured. A Temporary Total Disablement cover not only financially protects the treatment, but also acts as a stable source of temporary income to support the family.
Some of the most important features that an individual searching for an effective Personal Accident Insurance should be looking out for:
Permanent Total Disablement: In case of lifelong permanent disability of the insured, the pre-decided sum is payable to the nominee, that is, the insured policyholder.
Permanent Partial Disablement: In case of injuries to the policyholder that has led to his/her permanent impairment, a specific pre-decided compensation is payable to the insured. The reimbursement is decided by the concerned insurance company on the basis of the extent of injury or impairment.
Temporary Total Disablement: A certain pre-determined compensation is payable to the insured in the case of a short term impairment, resulting in confinement at home. This is generally a weekly payment that is restricted to a certain limit. This reimbursement serves as a compensation for him/her to recover from temporary loss of income, arising from the short term impairment.
Some features that an individual may opt for to increase the effectiveness of a Personal Accident Insurance:
Here is the list of some best Personal Accident Insurance Plans in India:
As the name suggests, such personal accident insurance plan is customized to offer its benefits to an individual only, that is, the insured. The benefits offered by such plans are more extensive than group personal accident insurance plans. They protect the insured against unforeseen mishaps, and offers cover against demise or long term and short term impairment or injuries.
Employers often offer a personal accident insurance plan to their employees in the form of a group cover. Such insurance policies usually include only the benefits of a basic plan, and exclude certain benefits of a standalone policy. The premium for such personal accident insurance plan is lower since insurers offer a discount based on the size of the group. The provisions of group plans are as per the provisions laid down in the IRDA Act, 1999, and supported by the Government of India. In case the benefits of a group personal accident insurance plan prove to be insufficient, an employee can purchase a separate personal accident insurance policy, especially designed for individuals.
Personal Accident cover pays out when the following for occurrences take place:
While buying the Personal Accident insurance policy, one should always keep in mind the limitations of this policy. The following scenarios are not covered in the Personal Accident Insurance plans:
The basic benefit of Personal Accident insurance is that it safeguards you against any unseen unfortunate accidents that may occur at any time. It supports you in the time of medical expenses and/or loss of income due to an accident. The following are a few of the many benefits of the personal accident insurance policy.
Logically, we all know that accidents can happen to anyone, anywhere. But the fear center of our brain fires a denial reaction and we always end up thinking that it will never happen to us. But if we think practically, there’s a fair chance that it can happen to any of us. And accidents may lead to a spectrum of outcomes, right from a simple bruise to incapacitating disability or even death.
A part of being an adult is that we have the sensibilities to think practically and secure our future, if given a chance. Personal accident cover gives us that chance. In short, it is beneficial for everyone who is at a risk of meeting with an accident, which is everyone.
You get Expert Advice: With so many choices, it may get overwhelming and confusing as to which insurance policy to go for (trust us, "too many choices" is a thing). Turn to us for our health experts to guide you through the process giving you our inputs wherever you need. As Coverfox is not affiliated with any insurance company, count on us for unbiased opinions that are in your best interests.
You get a team of Service Managers: Your point of contact in Coverfox, who will help you out with your claims, endorsements or any other services you need to avail. They will follow up for you and get you the best claim settlement amount you can get from your health insurance company. And we are just a call away! This brings us to our next point.
You Can Avail Post Sales Assistance: Once we sell the policy, our job is not done. We assist you in the processes that follow post-sales; processes that would have otherwise taken up your time and energy. Get assistance with claims, endorsements etc.
Get the Job Done with Zero Paperwork: We help you buy a health insurance policy with little paperwork. You get your policy document in your inbox within 5 minutes of buying it! We also help you keep your documentation at one place, where it is easily accessible to you.
Tax benefit can be availed on the annual premium payments on Personal Accident Insurance plans that insure policyholders against dismemberment, physical impairment or death, as per Section 80D of the Income Tax Act, 1961. However, the primary criteria for selecting an insurance plan should be the financial protection and security that it offers, and not just the tax benefits that he/she will become eligible for.
A Personal Accident Insurance is suitable for every individual across age groups, health conditions, occupations, etc. Therefore, it is wise for everyone to have a personal accident insurance cover. Such an insurance plan is especially necessary for those who have mortgages and car/two wheeler loans against their names. This is because personal accident insurance plans offer repayment benefits to the insured who have loans or mortgages. The premium for personal accident insurance plans is determined by insurance companies on the basis of your occupation, and not your age.
What might be the best personal accident insurance plan for one individual might not be the same for another. A plan that will be the best suited for you can be determined by keeping certain factors in mind while purchasing it. The online medium has made the purchase of a personal accident insurance plan easy and convenient as it can be done irrespective of your location.
Here are the factors that you need to consider to buy the best personal accident insurance online:
Benefits: Look for a personal accident insurance with the maximum benefits offered irrespective of your location. Some of the benefits that it must cover are Accidental Benefit, Total and Partial Permanent Disability cover, and Temporary Total Disablement cover.
Benefits to family: If you have dependents in your family, you would probably prefer opting for a personal accident insurance plan that benefits your family in case of your unforeseen death or permanent disability. The higher the compensatory amount for your family, the better will it be for them.
Premium: The lesser the premium amount for the maximum benefits offered, the better it is for you.
Insurance Company: The reputation of the insurance company depends on factors like the number of years in the insurance industry, and more specifically, its current claim settlement ratio. Compare between various leading insurance companies on the basis of these factors to take a conscious decision.
Coverage in Foreign Countries: It will be a wise decision for you to purchase a personal accident insurance plan that covers you when you are travelling outside India.
Exclusions: Be thoroughly aware of the policy exclusions to avoid misunderstandings later.
| Insurer and Insurance Plan | Plan Basis | Entry Ages | Sum Assured Amounts (INR) | Accidental Death Benefit | Permanent Total Disability | Temporary Partial/Total Disability | Permanent Partial Disability | Medical Expenses Reimbursement | Ambulance Charges Cover |
|---|---|---|---|---|---|---|---|---|---|
| Apollo Munich Individual Personal Accident Standard | Individual and Family | (Minimum - 91 days To Maximum – 69 years) | (Minimum – 1 lakh To Maximum – 50 lakhs) (Minimum – 5 lakhs To Maximum – 5 crores ) | Yes, equal to Sum Assured + bonus (if any) | Yes, equal to Accidental Death Benefit | Temporary total disability – 10% of ADB | Yes, equal to Accidental Death Benefit | (Standard - Yes – 5% of ADB) (Premium - Yes, subject to INR 100000) | Yes, subject to INR 2000 |
| Bharti AXA Smart Individual Personal Accident | Individual only | (Minimum – 18 years To Maximum – 70 years) | (Minimum – 10 lakhs To Maximum – 30 lakhs) | Yes, equal to Sum Assured | Yes, subject to 150% of Accidental Death Benefit | No | Yes, equal to 2-75% of Sum Assured | Yes. Daily Hospitalisation Cash of INR 1000 till a period of 50 days | No |
| Religare Secure Personal Accident Insurance | Individual | (Minimum - 91 days To Maximum – 70 years) | (Minimum – 15 lakhs To Maximum – 25 crores) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | Yes, under Mobility Cover | Yes | Yes, subject to INR 100000 | Yes (under variants) |
| Bajaj Allianz Premium Personal Guard Plan | Individual and Family | (Minimum – 5 years To Maximum – 65 years) | (Minimum – 10 lakhs To Maximum – 25 lakhs) | Yes, equal to Sum Assured | Yes (under variants), subject to Sum Assured | Yes (under variants), subject to 75% of Sum Assured | Yes (under variants), subject to 75% of Sum Assured | Yes, lesser of 40% of medical bills or actual bills | No | >
| ICICI Lombard Personal Protect | Individual | (Minimum – 18 years To Maximum – 80 years) | (Minimum – 3 lakhs To Maximum – 25 lakhs) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | No | No | Yes (under allowance and reimbursement) | No |
| HDFC ERGO Personal Accident Insurance | Individual and Family | (Minimum – NA To Maximum – 65 years) | (Minimum – 2.5 lakhs To Maximum – 15 lakhs) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | No | No | Yes, INR 250 to INR 500 per day | Yes, INR 1500 to INR 2000 |
| Star Health Accident Care Individual Insurance | Individual and Family | (Minimum – 5 months To Maximum – 70 years) | (Minimum – 5 lakhs To Maximum – 15 lakhs ) | Yes, equal to Sum Assured | Yes, equal to 150% of SA + bonus (if any) | Yes | Yes | Yes, till 25% of valid claim or 10% of SA subject to INR 500000 | Yes, till INR 5000 |
| United India Personal Accident Insurance | Individual and Family | (Minimum – 5 years To Maximum – 70 years) | (Minimum – 25000 To Maximum – 10 lakhs) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | No | Yes, up to 95% of SA | Yes | No | >
| Oriental Janata Personal Accident Policy | Individual and Family | (Minimum – 10 years To Maximum – 80 years) | (Minimum – 25000 To Maximum – 5 lakhs) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | No | Yes, maximum of 50% of Accidental Death Benefit | No | No |
| Reliance Personal Accident Policy | Individual and Family | (Minimum – 5 years To Maximum – 70 years) | (Minimum – 5 lakhs To Maximum – 10 lakhs) | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | Temporary total disability subject to 1% of the SA and not more than INR 5000 per week for 50 weeks | Yes, maximum of 50% of Accidental Death Benefit | Yes, lesser of 40% of medical bills paid or 20% of relevant sum assured | No |
| National Insurance Individual Personal Accident Policy | Individual and Family | (Minimum – 5 years To Maximum – 70 years) | NA | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | No | Yes | Yes | No |
| New India Personal Accident Policy | Individual and Family | (Minimum – 5 years To Maximum – 70 years) | Maximum – 72 months of income from gainful employment | Yes, equal to Sum Assured | Yes, equal to Accidental Death Benefit | Temporary total disability, payment of 1% of SA per week for a maximum of 100 weeks | Yes, maximum of 50% of Accidental Death Benefit | No | No |
Inform your insurance company: Get in touch with the insurer as early as possible. They need to be informed that an accident involving the insured has taken place, along with the reference number or policy number, for them to register the claim and initiate the claim settlement process.
Get in touch with the insurer after hospitalization: After the insured has been hospitalized, the insurer has to be informed about the name of the hospital where the insured is being admitted. After diagnosis at the hospital, they need to be kept updated about the nature and extent of the injury or disablement caused by the accident. Essential documents related to the diagnosis, medication, treatment and receipts of hospital bills have to be submitted to the insurer for easy and hassle free claims settlement.
Submit FIR, if necessary: Insurance companies may ask the insured’s family to submit a copy of FIR, issued by the police station where the accident had taken place. This is generally mandatory for accidents caused as a result of specific reasons like collapse of infrastructure, etc. or criminal cases.
Fill up the claim form: A representative from the insurer will get in touch with the insured relative(s), who had initiated the claims process, at the relevant hospital or registered address of the policyholder. This is an essential part of the claims process as it enables the insurer to verify the claim and collect the essential documents.
Every insurance company usually have their unique calculations for premium payments, depending on the cost of the basic plan and costs of add-on covers opted for. Modern insurance companies often offer the facility of an online calculator that enables prospective policyholders to get an estimate of the premium that they will be eligible for on the personal accident insurance plan and add-on(s) chosen by them.
“My personal accident insurance policy had been of great help when I was temporarily disabled due to a bike accident. Since I was completely bedridden, I had to take a long leave from work without pay. Had I not purchased this insurance plan, I don’t know how I would have been able to pay my treatment expenses as well as that of my regular household expenditures.” – Akash Sehgal
“So glad I had a personal accident insurance policy to pay my expensive hospital bills, home expenses and even reimburse the premium payment for my car loan. Otherwise, my family would have been completely lost.” – Nidhi Sharma
“The group personal accident insurance policy from my employer had been a saviour when I’d met with a road accident. I’m thankful to my organization for extending this benefit to all its employees.” – Neel Mehra
