Here’s How Your Personal Accident Insurance Can Protect Your Financial Well-Being

An accident is always unexpected, and unfortunate. It can lead to minor injuries, which can cause you to temporarily return to your normal life, while more serious problems can lead to the collapse of work, and cause financial problems.

Most of us may have life insurance that is in effect, but life insurance does not pay out anything if an accident causes temporary or permanent disability that is not fatal.

This is where personal accident cover can be very useful. A personal accident policy will provide coverage for both disability and accidental death.

The Importance of Fighting Disability

Bhaskar Nerurkar, head, health management group, Bajaj Allianz General Insurance, explains the different types of disability that are covered under a personal accident policy.

A personal accident policy covers permanent disability that leads to the loss of an organ, such as an eye, or a leg. In this case, part of the insurance premium is paid based on the loss of normal function of the body part. Such payments are made when the partial disability cannot be cured by medical treatment. These payments are in line with the policy.

Permanent disability is when the person is no longer able to work because of the permanent injury. Here, some insurance premiums are paid. Such a defect is usually not curable with drugs or medicine.

Even if the defect was not known at the time of the accident, but occurs as a result of the accident within one year of its occurrence, the benefit will be paid as money.

In short-term disability, a person is completely disabled, and cannot perform daily activities temporarily for a few days/weeks, for which the weekly benefit as defined in the laws and regulations is paid. In these cases, a person may be temporarily disabled due to an accident. Such disability can be restored through medicine or treatment, and the insured can return to his original work within his time.

A personal accident policy can compensate for the loss of income in such cases, and provide the insured with a fixed payment for several months, thus helping the family to cope with the difficult period when the family breadwinner is unable to work.

“Other exclusions are suicidal injuries, or injuries caused by alcohol or drug abuse, or pre-existing disabilities,” adds Nerurkar.

Stories Against Death

An accidental death can devastate a family emotionally and financially. Death within 12 months of purchasing the policy, and is caused by external, violent, visible, and visible means, which is confirmed and certified by a doctor is also covered under the personal accident policy. In case of accidental death, the nominee is paid 100 percent of the sum assured. Here, it is important to note that life insurance will also provide the sum assured in case of accidental death, while personal accident policy will not provide payment in case of natural death.

Ensuring Continuity of Children’s Education

A personal accident policy also ensures that the education of the insured child is not affected in case of death. Tuition can be 10 percent of the guaranteed amount or fees paid by the organization, whichever is lower.

A personal accident policy also covers household modification needs that are required due to life changes due to an accident. This may include the cost of installing a wheelchair accessible system if you have a disability, or modifying your car to make it more accessible.