Indian cities are turning claustrophobic day by day. Depleting green cover and rising pollution levels are making it difficult for the citizens to lead a healthy life. Metro’s demanding lifestyle, increase in accidents in public spaces, and growth in population have led to health hazards.
Therefore, it becomes crucial for every citizen to consciously think about investing for one’s financial security regarding such health issues. A personal accident policy can prove to be an ideal security cover against accidents. Read ahead to know 5 important things about accidental insurance.
1 – Meaning of Personal Accidental Insurance
Just as there are insurance policies to minimize financial losses in case of damage to vehicle and damage to a house, a personal accident insurance policy is meant to insure yourself against accidents. These unpredictable accidents can be an on-road accident, due to falling, etc. This cover not only ensures that your medical expenses arising due to an accident are looked after, but also provides for the loss of income arising due to an accident.
2 – Need of Personal Accidental Insurance
One might feel, why is there a need for personal accidental insurance policy when one has a group health insurance and a life insurance policy? The answer lies in what the personal accidental policy has to offer. A personal accidental insurance policy is placed somewhere in between a health insurance policy and a life insurance policy. A health insurance policy and a life insurance policy covers medical expenses and pays compensation in case of death, respectively. Whereas a personal accidental insurance policy covers both, as well as covers for loss of income in case of total or in-part disability.
3 – What is covered?
The exact coverage varies from insurer to insurer and depends upon the nature of your policy. The insurance premium charged takes into consideration your occupation and subsequently your exposure to risks on a daily basis. For example, a person with a desk job might be charged less premium than a person working on the floor in an industrial set-up.
Here’s a list of what is covered under a personal accident policy.
- Death due to accident – If an accident leads to the insured person’s death, the nominee shall receive the sum insured.
- Disability – Certain accidents can lead to partial or permanent disability. Loss of income due to such disabilities is covered. A fixed amount of money can also be paid as compensation.
- Medical Expenses – Expenses incurred to treat injuries arising due to an accident are covered.
- Others – Some insurers also offer a terrorism cover. Others might also provide an education grant to the insured person’s children (under 23 years).
4 – What is not covered?
The following instances are not covered under personal accident policies:
- Scenarios where the insured person engages in self-harming activities
- Injuries that were pre-existing
- Injuries/death in case of intoxication
- Injuries/death during childbirth and pregnancy
- Injuries/death during illegal activities
- Injuries/death during war
- Injuries/death during adventure sports
5 – What is an Ideal Cover?
An ideal cover depends upon your risk exposure and need. If you are not sure about the coverage needed, get in touch with a health insurance company’s executive on call or email to know what is perfect for you. In terms of sum assured, it is suggested to choose an amount that is ten times your annual income.
Also, read: Health Insurance for COVID-19
Nowadays, a personal accident policy can be purchased easily by visiting your preferred insurance company’s website. Understand the inclusions and exclusions of your policy, sum assured and benefits, and the claim process in detail before purchasing the policy.
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