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Top 10 factors to consider while choosing Personal Accident Insurance Policy

Team AckoApr 12, 2022

Insurance protects us from expenses arising from unfortunate events. An accident is one such unfortunate event. Sometimes, despite being precautious, accidents happen. That is why it is essential to have health insurance against accidents. In this article, we will throw light on key aspects to consider while choosing a suitable Personal Accident Insurance Policy.

Things to Consider While Choosing Personal Accident Policy

What is a Personal Accident Insurance Policy?

A Personal Accident Insurance Policy is a type of insurance that offers coverage exclusively for medical expenses arising from accidents. It also covers death or disability caused due to an accident.

Criteria for choosing the best Personal Accident Insurance Policy

Below are some criteria that will help you choose a suitable Personal Accident Policy.

1. Coverage

Coverage in insurance refers to the extent of risk or liability that an insurance policy covers in the case of an unfortunate event. It is important to ensure that your Personal Accident Insurance Policy covers possible accidents that may arise from your daily activities.

Also, if you travel abroad frequently, make sure that your policy also includes worldwide coverage in addition to the other coverages you need.

2. Sum insured

Sum insured refers to the maximum value that an insurance company will cover during the policy period. Any medical expenses beyond this cap will have to be borne by the insured. Thus, it is advisable to choose an accident policy that offers a sum insured of an adequate amount.

For example, consider your age for deciding the sum insured. The older you are, there are chances that your medical expenses will also be higher. Therefore, the sum insured you choose should also provide adequate coverage at that age.

3. Premium

A premium is the amount of money paid to an insurer in exchange for insurance coverage. The scope of the coverage depends on the terms defined in the policy document. It is important to ensure that you get the maximum coverage for the amount you invest in the plan. Also, avoid buying the cheapest plans available, as they may not provide adequate coverage in time of need.

4. Inclusions

Inclusions refer to the scenarios an insurance policy offers cover for. In the context of a Personal Accident Insurance policy, this refers to accident scenarios that are covered by your policy. So, when choosing a policy, make sure that it covers the most probable accident scenarios.

5. Exclusions

Exclusions refer to scenarios that an insurance policy doesn’t offer cover for. Go through the policy document carefully to find out the exclusions of the policy. Usually, certain exclusions can be covered by paying a higher premium. It is important to ensure that the likely accident scenarios based on your requirements, are not classified as exclusions.

6. Type of policy

Personal Accident Insurance is offered as an Individual and a Family-floater plan. If you have a family or dependants, you can opt for a Family-floater plan. This will provide protection to you and your family against medical expenses arising from accidents. Also, it offers you the convenience of renewing the policy just once every renewal cycle, on behalf of all your family members.

7. Compensation to family

Find out the benefits the policy offers your family/dependants in case of permanent disability or death due to an accident. Ensure that the policy you choose offers maximum compensation to your family/dependants in such a scenario.

8. Insurer’s reputation

Knowing the reputation of an insurance company is crucial while choosing an ideal Personal Accident Insurance Policy. An insurer’s claim settlement ratio shows their probability of settling claims. Additionally, to find out the reputation of an insurance provider, check out the online ratings, reviews and testimonials posted by their existing customers. This will give you a good idea of the quality of service they provide.

9. Exit age

The eligibility age for buying an insurance policy is called entry age. The age after which you cannot take/renew an insurance policy is called exit age. When selecting an accident policy, choose a plan that has a high exit age criterion. This will ensure that you have accident cover even into old age.

10. Network hospitals

Insurers have a tie-up with certain hospitals to settle bills on behalf of the insured. These hospitals are called network hospitals and they accept cashless treatment. Make sure your insurance provider has reliable and accessible network hospitals. Usually, you can find the list of network hospitals that an insurance company has tie-ups with, on their website.

Why purchase a Personal Accident Insurance Policy?

If you currently possess a health insurance policy, you may wonder if it's worth buying a Personal Accident Insurance Plan. Well, some insurers may not offer an accident cover as part of their health insurance policy and the ones that do, may offer only a limited cover as stated in their policy document. Therefore, it is crucial to opt for Personal Accident Insurance if you don’t have enough coverage in your regular health insurance plan.

Benefits of a Personal Accident Insurance Policy

Below are some of the benefits you will receive if you opt for a Personal Accident Insurance Policy.

  • Provides protection to you and your loved ones from expenses arising from accidents.

  • Broad coverage of medical expenses are offered at affordable premiums.

  • Worldwide coverage depending on the terms stated in the policy document.

  • Hassle-free claim settlement process.

  • You can customise your policy using add-ons to fit your requirements.

Key takeaway

Accidents are unfortunate and unpredictable events. Needless to say, they are also financially draining. Therefore, it is important to proactively protect you and your loved ones from the financial repercussions.

A Personal Accident Insurance Policy does just that by offering exclusive coverage of medical expenses arising from an accident. So, choose the best Personal Accident cover using the criteria we discussed above, to keep you and your loved ones secure.

Frequently asked questions

Doesn’t health insurance include coverage for accidental injuries?

Usually health insurance providers do not offer an accident cover as part of their regular plans. The ones that do however, may offer only a limited cover as defined in their respective policy documents. This is why it is important to purchase a separate Personal Accident Insurance Policy or get an accident cover add-on on top of your existing health plan.

Should I opt for an Accident Insurance Policy as part of health insurance or motor insurance?

The Indian Motor Tariff 2002 mandates every vehicle owner to possess a personal accident cover. So, if you don’t have a personal accident cover as part of a motor insurance, it is always advisable to purchase one as part of your health insurance.

What documents are required during the claim settlement process for a Personal Accident Insurance Policy?

The documents you may require during the claim settlement process include the following.

  • Copy of insurance policy

  • Details of the insured

  • Completed and signed claim form

  • First Information Report (FIR)

  • Medical certificates

  • Original death certificate (in the case of death)

  • Medicine bills

  • Doctor’s fee bill

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

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