How Personal Accident Insurance Works

While most of you already save for a rainy day and/or have purchased life and health insurance, there are a few other important and important insurance policies that are also important. One of these principles is accident insurance.

According to a report by the National Crime Records Bureau, 3,68,828 road accidents were reported in the year 2020 of which more than 50% were road accidents. These road accidents injured 3,36,248 people and killed 1,46,354.

The effects of accidents are sometimes fatal, sometimes temporary, and sometimes permanent. Apart from harming the body, it can also affect your financial and emotional health. Injuries sustained in an accident can affect your ability to work and earn a living. In such cases, personal insurance can help and protect you and your family.

What is Personal Accident Insurance?

Personal accident insurance provides you and your family with the financial support needed in the event of an accident resulting in death, injury or temporary or permanent disability. If the accident results in the death of the policyholder, then 100% compensation (equal to the sum assured) will be paid to the nominee.

Furthermore, depending on the insurance and policy you choose, there are several other benefits available to the owner of his accident insurance. This includes:

  • Hospital, pre- and post-hospital care
  • Daily payments up to 30 days
  • The significance of the loss of income over a period of time
  • Education benefits your dependent children up to a certain age

Types of Personal Accident Insurance

Personal accident insurance can be divided into two categories – Group accident insurance and Personal accident insurance.

Public accident insurance: In many cases, companies and business owners choose to purchase accident cover for their employees. This is especially true in manufacturing or construction businesses where workers and employees are at risk of accidents. This kind of cover acts as a guarantee to the workers that in the event of an accident at work, they will be compensated.

Personal Accident Insurance: As the name suggests, this type of insurance will be taken by a person to protect himself from the risk of accidental damage. As mentioned, it may involve accidental death, temporary or permanent disability, etc.

How Personal Accident Insurance Can Help You

Many people tend to neglect buying accident insurance because they believe that life, health, or car insurance will help them in the event of an accident. However, it is important to note that these policies do not provide the same type of comprehensive support that is needed during an accident, as is done with accident insurance. Let’s consider personal accident cover with life insurance and health insurance:

  • Personal accident insurance pays for benefits due to loss of life or disability in the event of an accident. This service is for temporary or partial disability, financial assistance in case of loss of income due to an accident, and even educational assistance for dependent children.

Life insurance, on the other hand, only provides a death benefit. However, it is important to remember that personal accident cover is a subset of life insurance as it covers other risks, for example, accidents.

  • Another important thing to know is that although most health and life insurance policies may be limited by location, personal accident policies are offered worldwide. This means that while some policies may not provide compensation for injuries that occur outside India, there is no such limitation with personal accident policies.
  • Although one can take accidental cover as a passenger or add-on cover to life or health insurance, it is always better to buy it as a stand-alone policy. Personal accident policy premiums are determined mainly based on your occupation and not your age.

What You Need to Know Before Choosing to Get Personal Accident Insurance

As always, the amount of cover should be in line with your monthly income and lifestyle. The amount of the cover and who all it covers will determine the price and there are several ways you can buy it quickly and easily online.

If an insured event occurs, in most cases, you should notify the insurance company immediately and provide documents that may include a claim form, death/disability certificate, post-mortem/doctor’s report, FIR copy, medical certificate. , medical expenses, discharge summary (if hospitalized) and investigation report.

As with most other insurances, you need to know the exclusions, i.e. the events that will not be covered by your policy. In the case of personal insurance, this usually includes intentional or suicidal injuries, injuries resulting from war, drugs or alcohol, participation in public violence or workplace disturbances, and travel sports, and claims resulting from illness/disease and pregnancy. /complications related to childbirth.

Down Under

Although insurance does not directly help with the emotional and psychological trauma of an accident, it can help alleviate the financial problems that an unexpected event can bring. Today, there are several types of insurance and providers, available for your equipment, that can meet your risk protection needs.