Road safety data indicates that hundreds of commuters die or become incapacitated on Indian roads, as a result of accidents. The ever-expanding population and the subsequent growth in two and four wheelers on the roads have made accidents a common phenomenon.
The impact of an accident on one’s finances is massive. The increase in spend during the treatment period and the lack of income during the recuperation phase can create a very insecure environment in the victim’s household, especially if the impacted is the sole breadwinner in the family. A Personal Accident Insurance can come as a huge relief in such trying times.
Personal Accident Insurance
This is an insurance that offers compensation when the policyholder suffers injuries, mutilation, impairment or demise from a hazardous, violent and visible event. The situations that are included under this cover are:
- Injuries during air, road or rail travel
- Injury due to a fall or collision
- Drowning or injury from fire
The accident insurance policy also protects dependents of the policyholder from economic issues if he comes to pass. A person should ideally buy a policy that provides reimbursements for all unprecedented situations such as short-term impairment to demise of the individual. Such a policy will protect the family’s future, and can be conveniently renewed through online portals.
On a high level, personal accident policy can be divided into two types:
- Individual Accident Insurance
This type of policy protects an individual from mishaps that are intentional or unintentional. The incident may have caused impairments or even death.
- Group Accident Insurance
This type of insurance is taken by employers for the benefit of their employees. Depending on the size of the group that is being insured, discounts on premium may also be offered. Although this is a very good incentive that organisations can provide their employees, the group plan may not offer the same benefits that an individual plan does.
A good accident insurance policy protects the policyholder and his family in a very significant way. Hence, it is important that people understand the advantages of purchasing such a policy. Accident insurance policies can be purchased online through the insurer’s website or, more efficiently, through neutral third-party financial websites.
Coverage under the scheme
Under a personal accident insurance policy, the policyholder is protected from the following:
- Death by accident
- Partial or complete disability through an accident
- Dismemberment of a part of the individual’s body in an accident
- Injuries due to terrorist acts
Moreover, the policy also provides monetary assistance to patients during their hospitalisation.
Also Read: Car Insurance Policies in India
Advantages of Personal Accident Insurance scheme
Some of the most prominent advantages of purchasing an accident insurance policy are listed below:
- The policy provides financial security to the family in the event of a mishap.
- There is no need to produce documents or conduct additional medical tests to avail the benefits.
- The policy provides good coverage at an affordable premium.
- The accident insurance cover can be utilised worldwide.
- The insurance can be purchased for an individual or for the entire family.
- The claim process is easy and certified.
- There will be 24x7 customer support for this service.
- Legal and funeral expenses will be covered.
- The policies also provide child education benefits.
- There will be double indemnity when the policyholder faces impairment or death while travelling in public transport vehicles.
- The insurance plan can be customised as per individual needs.
Who should purchase accidental insurance coverage?
Ideally, accident insurance coverage should be purchased by everyone, irrespective of occupation, age, and health. This insurance coverage is seen as an essential for those who have taken vehicle loans and mortgages, as it offers repayment facilities for outstanding balances if a mishap occurs. However, the premium for this policy depends on your occupation, as opposed to your age.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017