Accidents can be detrimental to a person and loved ones.
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Accidents are unexpected, and they can happen to anyone, anywhere, at any time. It's a reality we all face. That's why we're here to talk about something important: Personal Accident Insurance, also known as Accidental Insurance. We know, insurance can sometimes sound a bit complicated and overwhelming, but don't worry! We're here to break it down for you in the simplest and friendliest way possible.
In this article, we're going to explore what Personal Accident Insurance is, how it can help you, and why getting it online might be a great option. Let's make understanding insurance as easy as a breezy day at the beach. Ready? Let's dive in!
Personal Accident Insurance is a type of insurance coverage that acts as a vital safety net designed to offer financial support when accidents occur unexpectedly. Whether it's a slip and fall or a car accident, these unforeseen events can lead to physical and financial stress. Personal Accident Insurance ensures you and your loved ones are financially secure during such challenging times.
India has the highest number of road accident deaths in the world. In 2021, there were 1,53,972 road accident deaths in India, which is equivalent to one death every four minutes. This is a staggering number, and it highlights the urgent need for action to improve road safety in India.
The number of road accidents in India has been increasing steadily over the years. In 2010, there were 1,19,513 road accident deaths in India. This means that the number of road accident deaths has increased by 28% in just 11 years.
The majority of road accident deaths in India occur among young people in the age group of 18-45 years. In 2021, 67% of road accident deaths in India occurred in this age group. This is a major concern, as these are the most productive years of a person's life.
Pedestrians, cyclists, and two-wheeler riders are the most vulnerable road users in India. They account for around 40% of all road accident deaths. This is due to the fact that they are less protected than motorists and are more likely to be injured or killed in an accident.
The main causes of road accidents in India are speeding, drunk driving, and rash driving. These are all preventable causes, and it is important to raise awareness about them and take steps to address them.
Here are the different types of insurance policy that can have a Personal Accident Cover.
Imagine you have health insurance plan, which helps you pay for medical bills when you get sick. Now, you can also get something called a "Personal Accident Policy" along with your health insurance.
This extra policy gives you money if you have an accident and get hurt. It's like a safety net for accidents. For example, if you, your spouse, or your kids have this extra policy, and any of you get into an accident, this policy will give you some money to help with the expenses.
When you have a car, it's the law to have car insurance. But now, the law also says you should have an extra policy called "Personal Accident Cover" with your car insurance. It's because one person might own more than one car, and this policy makes sure they are protected if they get hurt in an accident. So, it's like having a backup plan that pays you if you're in a car accident.
Sometimes, life throws different challenges at us. To help with that, insurance companies offer "add-ons." These are like optional extras you can add to your main insurance plan. One of these extras is the "accident cover." So, if you want more protection for accidents, you can add this to your main insurance plan. It's like personalising your insurance to fit your needs better.
Now, let's talk about another important type of insurance - life insurance. It's like a safety net for your family if something happens to you. Just like with health and car insurance, you can also get a "Personal Accident Cover" along with your life insurance.
If you have an accident and something bad happens, your family will receive some money to help them out during a tough time. So, it's like an extra layer of protection to make sure your loved ones are taken care of if an accident occurs while you have life insurance.
A personal accident insurance plan is an important insurance plan to have in India. It can provide financial protection in the event of an accident that results in death, disability, or medical expenses. This can help to ease the financial burden on you or your family in the event of an accident.
Imagine you're a young professional in India, working diligently to support your family. One day, on your way to work, you meet with a severe accident, resulting in multiple fractures and a lengthy hospital stay. Without Personal Accident Insurance, you'd be faced with overwhelming medical bills, and your absence from work might put your family's financial stability at risk. However, because you had wisely invested in a Personal Accident Insurance plan, you were covered. The insurance not only takes care of your hospital expenses but also provides a portion of your regular income during your recovery period (depending upon the terms and conditions of your insurance plan), ensuring that your family's needs are met despite your inability to work.
Moreover, if the accident had been even more severe, causing a disability or a fatality, the insurance would have offered a substantial lump sum payout. This financial cushion could help your family cope with the long-term challenges they might face.
Here are the key benefits of buying a Personal Accident Health insurance policy.
The biggest benefit of a Personal Accident Insurance plan is that it provides you with financial support if you have an accident. Imagine if you're injured and can't work for a while, this insurance can help cover your medical bills and daily expenses.
If, unfortunately you lose your life due to an accident, this insurance ensures your family gets a lump sum amount. It can help them financially during a very tough time.
Sometimes, accidents can leave you with disabilities that make it hard to work. This insurance can give you a payout to help you adjust to this new situation.
Unlike health insurance, you usually don't need to undergo a medical checkup to get a Personal Accident Insurance plan. It's easier to obtain.
This type of insurance is quite affordable, and the premiums are usually lower compared to other insurance plans. So, it won't put a big dent in your wallet.
You can also get tax benefits under section 80D of the Income Tax Act as per the old tax regime, which means you can save some money on your income tax by having this insurance.
Accidents can happen anytime, anywhere. Personal Accident Insurance provides coverage around the clock, whether you're at home, at work, or on vacation.
Lastly, having this insurance gives you peace of mind. You know that if an accident does happen, you and your family won't have to face financial difficulties alone.
Following are the general inclusions of the Personal Accident Insurance Plan.
Accidental Death: If you have a fatal accident, your family gets a lump sum amount. It's like financial support when they need it the most.
Permanent Disability: If you become permanently disabled due to an accident, this insurance can provide you with financial aid to adapt to the new situation.
Temporary Disability: If you can't work for some time because of an accident, you can get a regular income to cover your daily expenses.
Medical Expenses: It also covers the medical bills you might have due to the accident. From hospital stays to surgeries, it helps lighten the financial load.
Ambulance Costs: Sometimes, just getting to the hospital can be expensive. This insurance can take care of ambulance costs.
Following are the general exclusions of the Personal Accident Insurance Plan.
Self-Inflicted Injuries: If you intentionally hurt yourself, the policy won't cover it. So, no trying to claim it if you decide to become a daredevil.
Influence of Alcohol or Drugs: If your accident happens while you're under the influence of alcohol or drugs (not prescribed by a doctor), the policy won't kick in. So, be responsible.
Participation in Risky Activities: Extreme sports or activities like skydiving or racing can be thrilling, but they aren't covered. So, if you're into such adventures, think twice.
War and Terrorism: Accidents resulting from war or terrorist acts aren't covered. It's not your fault, but it's not covered either.
Pre-existing Conditions: If your accident is related to a health issue you already had before getting the policy, it's excluded.
Engaging in Criminal Activities: If your accident occurs while you're committing a crime, don't expect your insurance to bail you out.
Suicide Attempts: In the unfortunate event of a suicide attempt within a year of policy issuance, it won't be covered.
Non-Disclosure of Information: If you didn't provide accurate information when buying the policy, your claim could get denied. Always be honest.
Unlicensed Driving: If you have an accident while driving without a valid licence, your claim won't be valid.
Acting Recklessly: If you're being careless and your accident results from that recklessness, it's not covered.
To purchase a personal accident insurance policy in India, you don't need to navigate complex eligibility requirements. The process is quite straightforward, making it accessible to most individuals. Here's a breakdown.
Age Range: Typically, individuals aged between 18 and 70 are eligible. If you fall within this age bracket, you qualify.
Nationality: To buy this policy, you should either be an Indian citizen or a resident of India. As long as you reside in the country, you meet this criterion.
Medical Checkup: One of the advantages is that you generally don't need to undergo a medical examination for personal accident insurance. It's designed for simplicity and accessibility.
Income Verification: There's no requirement to demonstrate your income to obtain this insurance. It's available to people from all income levels.
Occupation: Irrespective of your occupation, you are typically eligible for personal accident insurance. Whether you're a professional, freelancer, or hold any job, you can apply.
Criminal Record: As long as you don't have a criminal record or a history of fraudulent activities, you should be eligible.
Premium Payment: You'll need to pay the premium, which is the regular fee to keep your policy active. The premium amount depends on your chosen coverage and other factors.
The cost of accident insurance can vary depending on several factors.
Coverage Amount: The more coverage you want, the higher the premium. It's essential to strike a balance between what you need and what you can afford.
Age: Younger individuals typically pay lower premiums because they are considered to be at a lower risk of accidents.
Occupation: Some jobs are riskier than others. If you have a high-risk job, your premium might be higher.
Health: Your overall health and medical history can also impact the cost. A healthier person may pay less.
Add-Ons: You can enhance your policy with additional riders like disability coverage, which will increase the premium.
Determining the right amount of Accidental Insurance Coverage in India can be a bit like finding the perfect pair of shoes – it should fit just right! So, how much coverage do you really need?
Consider Your Income: A good rule of thumb is to have coverage that's at least 10 times your annual income. For example, if you earn ₹5 lakhs per year, aim for ₹50 lakhs in coverage. This ensures your family has enough to maintain their lifestyle if you're unable to work due to an accident.
Debt and Loans: If you have loans or debts, make sure your coverage is enough to settle them in case something happens to you. This prevents your family from being burdened with your financial obligations.
Age and Dependents: Consider your age and the number of dependents you have. If you have a family, you might need more coverage to secure their future.
Additional Benefits: Some policies offer additional benefits like coverage for disability, permanent or partial, and coverage for education expenses of your children. These can be valuable, so check if they're included.
Inflation: Keep in mind that the cost of living increases over time due to inflation. So, your coverage should also account for inflation to ensure it remains effective in the future.
Affordability: While you want adequate coverage, you also need to ensure you can afford the premiums. Balance between what you need and what you can comfortably pay for.
In summary, there's no one-size-fits-all answer to how much Accidental Insurance Coverage you need in India. It depends on your individual circumstances, including income, expenses, and family situation.
Life insurance and accidental insurance in India serve different purposes. Life insurance provides financial protection for various life events, while accidental insurance focuses on accidents. Premiums, coverage, benefits, etc. differ between the two. The following table lists the differences between these two types of insurance plans.
Provides financial protection to your family in case of your death or on maturity of the policy.
Offers coverage specifically for accidents and injuries, providing a lump sum payment.
Covers both natural and accidental death.
Covers only accidental death or injuries.
Premiums are usually lower for young, healthy individuals.
Premiums can be higher as they cater to accident risks.
Pays a predetermined sum assured to the nominee in case of death.
Pays a lump sum in case of an accident resulting in death or disability.
Typically long-term plans, e.g., 10, 20, or 30 years.
Can be short-term or long-term, depending on the policy.
Some policies offer investment or savings components along with insurance.
May offer additional benefits like hospitalisation coverage or daily allowance for hospital stays.
Usually excludes suicide within the first year and specific risky activities.
Excludes death or injuries from non-accidental causes.
Nominee needs to provide proof of death, and the process can be straightforward.
Requires proof of accident, and the claim process can be more detailed.
Premiums paid and payouts received are eligible for tax benefits under Section 80C and 10(10D) as per the old tax regime.
Premiums paid and claim amount received may be eligible for tax benefits under Section 80D as per the old tax regime.
When choosing between the two, consider your specific needs and whether you want coverage for critical illnesses, accidents, or both. The following table lists the differences between these two types of insurance plans.
Critical Illness Insurance
Provides coverage for specified critical illnesses such as cancer, heart disease, stroke, etc.
Offers coverage for accidental injuries or death due to accidents.
Pays out upon diagnosis of a covered critical illness.
Pays out upon occurrence of an accident that leads to injuries or death.
Nature of Events Covered
Focuses on severe health conditions that are not a result of accidents.
Concentrates on injuries and death caused solely by accidents.
Requires medical diagnosis and proof of the critical illness to make a claim.
Requires evidence that the injury or death occurred due to an accident.
Typically, higher premiums due to the broader scope of covered illnesses.
Generally, lower premiums because it covers a narrower range of events.
Cancer, heart attack, stroke, kidney failure, etc.
Accidental injuries, dismemberment, accidental death.
Pre-existing conditions, non-disclosure of medical history.
Self-inflicted injuries, illnesses, non-accidental deaths.
Pays the policyholder upon diagnosis of a critical illness.
Pays the beneficiary or nominee in case of accidental death.
Helps cover medical expenses and provides financial support during illness.
Offers a lump sum payout to support the insured's family in case of accidental death.
The following table lists the differences between these two types of insurance plans.
Accidental Disability Policy
Provides a lump-sum payout to the nominee in case of the policyholder's death during the policy term.
Offers financial support in case the policyholder becomes disabled due to an accident.
Covers the risk of death due to any cause, be it natural or accidental, during the policy term.
Provides coverage specifically for accidents leading to disability, including partial or total disability.
Generally lower premiums for a higher sum assured, making it an affordable choice for pure life coverage.
Premiums can be relatively higher due to the specific coverage for accidental disabilities.
Pays a lump-sum amount to the nominee upon the policyholder's death, helping to support the family financially.
Offers a lump-sum payment to the policyholder if they become disabled due to an accident, aiding in medical and living expenses.
Optional riders like critical illness, accidental death benefit, or waiver of premium can be added for extra coverage.
Riders such as accidental death benefit and permanent total disability benefit can be added to enhance coverage.
Typically, suicide within the first year or specific non-disclosure of information may lead to claim rejection.
Exclusions may include pre-existing disabilities or accidents resulting from risky activities, as per policy terms.
Premiums paid and the payout received are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.
Premiums paid can be eligible for tax deductions under Section 80C, and the payout may also be tax-free under Section 10(10D).
Ideal for individuals looking for financial security for their family in case of their untimely demise.
Suitable for those concerned about the financial impact of an accidental disability, especially if their occupation involves high-risk activities.
Here are the steps you need to follow to raise a claim against your Personal Accident Insurance Cover.
Step 1: Notify the insurer
The first thing you should do when an accident occurs is to inform your insurance company as soon as possible. Most insurers have a helpline or an online portal where you can report the incident. Remember to provide all the necessary details such as your policy number, date and time of the accident, and the location.
Step 2: Upload documentation
Once you've reported the incident, the insurance company will guide you on the required documents. Common documents include a duly filled claim form, a copy of the policy, a copy of your ID, medical certificates if applicable, and any other supporting documents related to the accident.
Step 3: Verification process
The insurance company will initiate an investigation to assess the validity of your claim. This may involve interviews, surveys, or medical examinations, depending on the nature of the accident.
Step 4: Claim Approval
If your claim is found to be valid and in accordance with your policy terms, the insurance company will approve it. You will receive a notification or confirmation, and they will guide you on the further process.
Step 5: Settlement
Once your claim is approved, the insurance company will make the necessary payout as per your policy terms. This amount can cover medical expenses, disability benefits, or other eligible expenses, depending on your policy.
Personal accident insurance in India offers several tax benefits that can help you save money while ensuring your financial security in case of an accident. In this simple and friendly explanation, we'll break down these tax benefits for you.
When you purchase personal accident insurance, you can claim a tax deduction under Section 80D of the Income Tax Act as per the old tax regime. However, it's essential to note that this deduction is available for the premium paid for the health and accident policies together, not specifically for the accident policy alone.
One of the significant advantages of personal accident insurance is that the claim payouts you receive in case of an accident are generally tax-free. This means you don't have to worry about paying taxes on the money you receive as compensation, providing you with financial relief during a challenging time.
In some cases, you can also enjoy tax benefits on the premium you pay for your personal accident insurance policy. These benefits can reduce your taxable income, potentially lowering your overall tax liability.
Personal accident insurance often includes additional benefits like coverage for medical expenses and disabilities. These additional benefits may also come with tax benefits, making your insurance policy even more financially advantageous.
Here are the tips for choosing the right Individual Personal Accident Policy in India.
Assess Your Needs: First, figure out what you need. Think about your lifestyle, daily activities, and potential risks. Do you have a risky job or hobbies? Understanding your needs is the first step.
Coverage Amount: Decide how much coverage you need. It should be enough to cover medical expenses, loss of income, and other expenses in case of an accident.
Compare Plans: Don't rush! Compare policies from different insurance companies. Look for features like accidental death benefit, permanent disability coverage, and temporary total disability coverage.
Premiums: Consider your budget. Premiums can vary, so choose a policy that offers good coverage without straining your finances.
Exclusions: Read the fine print. Every policy has exclusions, which are situations not covered by the insurance. Make sure you understand them.
Claim Process: Check the ease of the claim process. A smooth and hassle-free claim process is essential during difficult times.
Additional Benefits: Some policies offer added benefits like ambulance coverage, education grants, or even coverage for your family. See if these align with your needs.
Riders: Consider adding riders to your policy for more specific coverage, like hospitalisation or accidental death benefits.
Network Hospitals: Find out if the insurer has a tie-up with a network of hospitals for cashless treatments. It can be a significant advantage.
Reviews and Reputation: Check online reviews and the insurer's reputation. You want a company that's known for quick settlements and good customer service.
Financial Strength: Ensure the insurer is financially stable. You want them to be there when you need them.
ACKO's Personal Accident Policy is like having a safety net for unexpected accidents. It's a straightforward and helpful way to protect yourself or your loved ones financially in case of accidents. Here's how it works.
1. Choose Your Plan
First, you need to pick a plan that suits your needs and budget. We offer different coverage options, so you can select the one that's just right for you.
2. Premium Payment
To activate your policy, you'll need to pay a premium. This is usually done monthly or annually, depending on what you choose. The amount you pay will depend on your plan and the coverage you want.
3. Accident Happens
If you or the insured person (if it's not you) gets into an accident, We will step in to help. The policy covers various accident-related expenses like medical bills, hospitalisation costs, and even disability or death benefits.
4. Claim Process
When an accident occurs, you'll need to notify us as soon as possible. We'll guide you through the claim process. You might need to provide some documents, like medical reports or accident details, to support your claim.
5. Assessment and Payout
We will assess your claim and, if everything checks out, we'll provide the necessary financial support according to your policy's terms and conditions.
Remember, each policy may have its own specifics and terms, so it's essential to read the policy documents carefully and ask questions if you're unsure about anything.
Here are the inclusions of ACKO Personal Accident Policy.
Compensation (% of Sum Insured)
Total loss or loss of use of one limb
Loss of one eye
Total loss or loss of use of two limbs
Complete loss of eyesight
Total loss or loss of use of one limb and one eye
Permanent total disability
Waiver of premium
Available under ACKO Flexi Life Insurance Plan.
In simple terms, if you have an ACKO Personal Accident Policy and you experience any of these unfortunate events, you'll receive a percentage of your insured sum as compensation. For instance, if you lose one limb, you'll get 50% of the sum insured, and if you unfortunately pass away due to an accident, your beneficiaries will receive 100% of the sum insured. This policy is designed to provide financial support during challenging times.
Here are the exclusions of ACKO Personal Accident Policy.
Intentional injury: This means that the policyholder cannot file a claim if they are injured by someone who intentionally tries to harm them. For example, if the policyholder is attacked and injured by someone, they will not be able to file a claim for personal accident insurance.
Suicide: This means that the policyholder cannot file a claim if they intentionally take their own life. This is because suicide is considered to be a willful act, and insurance companies do not cover willful acts.
Accidents that happen when the insured is in an intoxicated state: This means that the policyholder cannot file a claim if they are injured in an accident while they are drunk or under the influence of drugs. This is because insurance companies believe that people who are intoxicated are more likely to take risks and are therefore more likely to be involved in accidents.
Injuries sustained while driving without valid documents (in case of motor insurance): This means that the policyholder cannot file a claim for injuries sustained while driving without a valid driver's licence or other required documents. This is because insurance companies believe that people who are driving without valid documents are more likely to be involved in accidents.
Any other exceptions as mentioned in the policy: This means that there may be other situations in which the policyholder will not be able to file a claim. These exceptions will be specified in the insurance policy.
One can buy a Personal Accident Insurance Policy either online or from a traditional insurance company. The online process is faster. To buy a personal accident policy online, visit the insurance company's website and look for a suitable plan. Read the policy terms and other details. Then proceed to make payment after ensuring that you have to go through the fine print.
A life insurance policy offers a death benefit and maturity benefit as per the condition of the plan. It does not provide coverage for treatment for injuries that are caused due to an accident. Thus, it is important to buy a personal accident policy even if life insurance is active.
Yes, since accidents are completely unpredictable, the risk associated is also unprecedented. Thus, every person irrespective of their age, gender, occupation, etc. should buy a personal accident policy.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.