Personal Accident Insurance

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.

Features of Personal Accident Coverage

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 predetermined 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 Other Features of Personal Accident Insurance of a Personal Accident Insurance:

  • Ambulance expenditure
  • Hospital daily cash
  • Reimbursement for broken bones
  • Family transportation allowance
  • Loan protector
  • Repatriation of mortal remains
  • Accident Statistics in India

    As per government data, more than 1200 accidents occur everyday in India. With the increase in commute in our daily lives, people have become more vulnerable to road accidents than ever.

    • According to the data of Ministry of Road Transport and Highways, 4.49 lakh road accidents occured in 2019 in which 1.51 lakh people died.
    • More than 40% of casualties are that of bikes and trucks.

    However, the above mentioned numbers could be higher because a lot of road accidents go unreported.

    Types of Personal Accident Insurance

    Individual Personal Accident Insurance

    • As the name suggests, such an accidental 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 offer cover against demise or long term and short term impairment or injuries.

    Group Personal Accident Insurance

    • Employers often offer an accidental 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 plans 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.

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    Top Personal Accident Insurance Plans in India

    • Bharti AXA Smart Individual Personal Accident Plan
    • Apollo Munich Individual Personal Accident Plan
    • ICICI Lombard Personal Protect Plan
    • HDFC ERGO Personal Accident Insurance Plan
    • United India Personal Accident Insurance Plan
    • Oriental Janata Personal Accident Policy
    • Star Health Accident Care Individual Insurance Plan
    • Bajaj Allianz Premium Personal Guard Plan
    • National Insurance Individual Personal Accident Policy
    • Religare Secure Personal Accident Insurance Plan
    • Reliance Personal Accident Policy
    • New India Assurance Personal Accident Policy

    Reasons to get Personal Accident Insurance Policy

    • The Accidental Death Cover, which offers a predetermined 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 disability 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.

    Personal Accidental Insurance Vs Critical Illness Insurance

    • Personal Accident Insurance: Personal Accident Coverage financially protects individuals on meeting with an accident. The payout is a lump sum amount that extends up to a predetermined sum insured. However, the payable amount is decided on the basis of the extent of injury and the type of accident.
    • Critical Illness Policy: On the other hand, critical illness policy pays a lump sum when the insured is diagnosed with one of the critical illnesses that is covered by the plan. The payout is decided by the severity of the critical illness.

    Difference between Personal Accident Insurance and Health Insurance

    • Personal Accident Insurance: Personal Accident Policy covers medical expenditure incurred towards accidental injuries leading to death and disabilities. Majority of the plans do not cover hospitalization expenses, and none of them offer cover for pre and post hospitalization expenses. There are additional benefits like Hospital Daily Cash, Burns, Broken Bones, Ambulance Allowance, etc., which policyholders can opt to enhance the effectiveness of the personal accident coverage.
    • Health Insurance: Health Insurance Policies cover medical expenses towards injuries and illnesses. Apart from hospitalization, pre and post hospitalization is also covered by such insurance policies. Death and disability is not covered by it. Some of the additional benefits offered are Room Rent Waiver, Critical Illness, Hospital Cash, Personal Accident, Top Up and Super Top Up.

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    Who Should Buy Personal Accident Insurance Policy?

    A Personal Accident Insurance is suitable for every individual across age groups, health conditions, occupations, etc. Therefore, it is wise for everyone to have personal accident coverage. Such an insurance plan is especially necessary for those who have mortgages and car/two wheeler loans against their names. This is because accidental 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.

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    What Does Personal Accident Insurance Cover

    Personal Accident cover pays out when the following for occurrences take place:

    Additional Covers
    Customize your Car Insurance
    • Zero Depreciation Cover
      Accidental Death

      In case of an unforeseen demise or injury during the policy tenure, the nominee is entitled to the full pre-determined compensatory amount, as mentioned in the policy document. The nominee will have to furnish certain essential documents to claim the compensation, in case of the demise of the policyholder.

    • Engine Protection
      Accidental Disability

      Accidental Disability may lead to the policy holder being out of work. The personal accident policy covers for the loss of income, be it from partial or complete disability.

    • NCB Protection
      Accidental Dismemberment

      If the policy holder loses a limb (or undergoes any other form of mutilation), and loses his income due to this, he will be paid out under accidental dismemberment.

    • Invoice Cover
      Medical Expenses

      Medical expenses owing to the treatment of accidental injuries re paid out under this clause.

    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.

    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 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.

    What Does Personal Accident Insurance Not Cover

    While buying the Personal Accident policy, one should always keep in mind the limitations of this policy. The following scenarios are not covered in the Personal Accident Coverage plans:

    • Pre-existing disability or injury

    • Pregnancy and child-birth

    • Self-harming scenarios such as suicides, purposeful overdose etc

    • Medical treatments that are not allopathic

    • Influence of intoxicants

    • Accidents occurring while indulging in something illegal

    • Accidents related to being involved in a war

    • Accidents occurring due to mental imbalance/disorders

    • Mishaps occurring due to adventure sports, participating in the navy, army, air force etc.

    Tax Benefit of Personal Accident Insurance Plan

    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.

    How to Calculate Accidental Insurance Premium Rates

    Every insurance company usually has 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.

    How to Buy Best Personal Accident Insurance Online

    What might be the best personal accident policy 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 cover 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 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 it will 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 make 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.

    Benefits of Buying Personal Accident Insurance

    The basic benefit of Personal Accident policy 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 cover.

    • Zero Depreciation Cover
      No Medical Check-ups

      Unlike many other policies, Personal Accident Policies do not require medical check-ups, so the process is pretty much hassle-free.

    • Engine Protection
      High Cover

      You can avail a good, substantial cover for

    • NCB Protection
      Child Education Benefits

      Legal and funeral expenses are covered with Child education benefits.

    • Invoice Cover
      Life Support Benefit

      It offers life support benefits as well.

    • Zero Depreciation Cover

      You can opt to buy personal accident cover for either yourself or for the family.

    • Engine Protection
      Death and Disability Cover

      You get double indemnity for death or disability caused while travelling on public transport

    • NCB Protection
      Group Discounts

      If you opt for group accidents cover, you stand to get discounts from the insurance companies.

    • Invoice Cover
      Safeguard Against the Rising Healthcare Costs

      With healthcare costs rising about 15-18% each year, within the next 5 years, the cost of hospitalization will be more than twice. This policy will safeguard you against this inflation.

    Do You Really Need Personal Accident Insurance Cover

    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 risk of meeting with an accident, which is everyone.

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    Claim Settlement Process for Personal Accident Insurance Plans

    • 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.

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    FAQs on Personal Accident Insurance

    My wife is a homemaker. Does she also need a personal accident insurance?

    Accidents can occur anytime and anyone can be a victim of it. Whether it is motor accidents, natural calamities or rail accidents. The damage caused is endless physically as well as financially. Getting intimidated is not the solution. Rather, being prepared for circumstances would be a wise decision. Buying a Personal Accident Insurance would cover the accidental injuries or death occurring due to accidents. This would help you to meet any expenses arising due to accidents and also secure your finances.

    Is there any age restriction for opting a personal accident insurance?

    Personal accident insurance can be opted by any Indian citizen from the age of 18 to 65 years.

    Will my personal accident insurance cover me if I meet with an accident in a foreign country?

    Yes, your personal accident insurance would cover you if you meet with an accident abroad. However, the sum insured would be paid to you in Indian currency once you are back to India.

    I already have a health insurance as well as a life insurance policy. Should I still buy a personal accident insurance?

    Health insurance offers you compensation/reimbursement of any medical or hospitalization expenses, while life insurance offer death benefit to your nominee after your demise.

    Personal Accidental Insurance would, however, insure you against any financial crisis that could occur due to any accidental permanent disability, accidental dismemberment, accidental death or any medical expenses owing to the treatment of accidental injuries. This policy would certainly enhance your financial portfolio apart from providing financial security, especially, if you are the sole earner of your family.

    Will I get any tax exemption for buying a Personal Accident Insurance?

    NO, you won't get any tax exemption against the premium paid for a Personal Accident Insurance.

    What is group personal accident policy?

    Employers often offer a group personal accident insurance plan to their employees. Such plans generally include only the benefits of a basic plan, while certain benefits of an individual personal accident insurance policy are excluded. The premium for these personal accident insurance plans is comparatively lower because insurance companies offer a discount based on the size of the group.

    Who is covered under personal accident insurance policy?

    Individual personal accident insurance policy covers the individual who has purchased the policy, who is also the insured. Group personal accident policies, which are offered by employers to their employees, cover those employees for whom it has been purchased.

    What does accident insurance mean?

    Accident insurance refers to an insurance plan that offers reimbursement or compensation to the insured in case of demise or partial/total disablement or temporary total disablement.

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