Personal Accident Policy

Personal Accident Insurance is the shield that keeps you financially protected during times of adversities, i.e., whenever you met with an accident this insurance policy will take care of all the medical expenses needed. The personal accident insurance provides coverage against physical injuries, death, permanent or temporary disability, hospitalization that caused due to accidents.

Compensating a human life is no way a possible deal, but, through a personal accident policy, the insurance companies intend to offer some financial help to the individual or the dependent.

Considering this, it is imperative for people to purchase a personal accident insurance plan, even if one is already covered by a comprehensive life insurance policy. If you meet with an untimely accident when you are covered under a personal accident plan, you or your nominee will be entitled to receive a payout from the insurer, which could in-turn help you meet your immediate expenses, pay off any outstanding debts or liabilities, or meet the long-term financial needs of your family. Given the amount of choice prospective policy buyers have while purchasing these plans, you can opt for a plan that perfectly covers your needs with an optimum sum insured amount and affordable premium payments.

Features of Personal Accident Policy

To help you understand the features of Personal Accident Policy better we have divided them into two sub-heads:

Accidental Death

Accidental Death

The policy document sets that amount of money to be paid to a person or his/her dependent that passes away in an accident or sustains serious wounds. Upon producing the necessary documents, one can claim the amount as per the company process.

Permanent Partial Disablement

Permanent Partial Disablement

The payment, in the case of bodily injuries because of an unfortunate event that results in partial impairment of the policyholder, the compensation is paid as a percentage of the total benefit amount. This percentage may be up to 100% of the benefit amount.

Temporary Total Disablement

Temporary Total Disablement

In case a policyholder, due to an accident, sustains some bodily wounds or temporary impairments, a certain fixed amount is paid as compensation. This can be fixed on a daily or weekly basis and is subject to the maximum limit as per the policy terms.

Primary Features

Primary Features

Personal Accident Policy is premeditated to offer compensation to an individual or group as per the terms and widely cover accidental demise or impairment (permanent or temporary) the results because of any of these four events.

Permanent Total Disablement

Permanent Total Disablement

In case a person sustains life-long total disablement due to an unfortunate event the advantages/ compensation as per the policy plan is paid to the policyholder.

Benefits of Personal Accident Insurance

Let’s picture a situation where even after being physically disabled you are effectively looking after your family, fulfilling their needs and leading a satisfying life. Yes, it is possible but only if you have a personal accident policy in hand. Here are some much-appreciated benefits that you would enjoy with the policy:

Hospital Cash Benefit

In the case of hospitalization as a result of an accident, the injured person is offered a fixed amount of medication. The number of days for such payments are however mentioned in the policy plan.

Repatriation of the Mortal remains

In case a person passes away in an unfortunate accident, the cost of transportation of his mortal remains from the demise site to the hospital or cremation ground or home is covered under a Personal Accident Policy.

Education Advantage

In the case of the demise of the policyholder in an accident, the education expenses of the dependent child are covered under the policy up to a certain limit.

Ambulance Expenses

The charges paid to an ambulance to ferry the injured person to the nearest hospital are waived off under the policy.

Broken Bones

There is a provision of a fixed amount paid for broken bones resulted because of an accidental mishap.

Burns

If the policyholder sustains burns because of a mishap, the policy offers a percentage of benefits as entitled under the plan.

Addition Advantages Offered By Personal Accident Insurance Plans

  • Minimal documentation with no medical health reports is required.
  • Optimum cover at lowest premium costs.
  • National and international coverage.
  • Options applicable to individual and group insurance.
  • Customization options are also available.
  • Easy and reliable claim process.
  • 24/7 customer support.
  • All legal, as well as funeral expenses, covered.
  • Child education coverage.
  • Indemnity on a dual basis in case of demise or impairment due to an accident while traveling in public transport.

Types of Personal Accident Insurance Plans

Insurance companies offer a range of products to their customers and that is why categorized the policy into two types of plans by keeping in mind the basic insurance needs of the people.

Individual Accident Insurance

In the occurrence of any intentional or unintentional mishap, Individual Accident Insurance defends an individual. The result of any such incident may include impairment, permanent or temporary disability or/and demise.

Group Accident Insurance

This insurance is usually availed by employers willing to provide their employees with insurance cover against any road/rail/air accident. Insurance usually offers a discount on the premium amount of such insurance policies depending upon the size of the group. Thus, such policies can be easily availed at a lower price which makes them affordable for small organizations & businesses. However, unlike individual plans, Group insurances offer basic coverage. An IRDA approved Group insurance widely covers impairment, permanent or temporary disability or/and demise.

What Personal Accident Insurance Covers?

Personal Accident Policy offers the following coverage:

Accidental Disability

Such plans cover partial or complete disabilities that result due to a mishap

Terrorism Attack

Some insurance companies also include accidents due to terrorist activities.

Accidental Dismemberment

In case an individual suffers dismemberment of any body part (hand/leg/eye) due to an accident and thus is eligible to claim for reimbursement

Daily Income During Hospitalization

In the case of income loss, the policy offers a compensatory allowance to an individual to fulfill the requirements of the individual and the family.

Inclusions & Exclusions

It is highly recommended that you understand the terms and conditions of personal accident insurance before you go for it. These are the most critical and intimidating features associated with a plan. To understand them better, here we offer you a quick list of major inclusions and exclusions:

Inclusions Exclusions
Accidental death Natural death
Permanent total and/or partial disability Pre-existing disability and/or injury
Accidental dismemberment Pregnancy or/and childbirth
Hospitalization charges/ Misc. medical expenses Self-injuries or/and suicide
Child education coverage Non-Allopathic treatments
Life support benefit Influence of drugs & intoxicants
Ambulance charges, Burns & broken bones Mental disorders, committing a criminal act, involvement in war activities and more
Daily allowance in case of income loss Participation in adventurous activities like sports, naval, air or military forces, etc.

Need For Personal Accident Insurance

While buying personal accident policy, one must assure that it in effect covers all sorts of injuries i.e. from minor injuries to death and offers appropriate reimbursement as per the case.

Thinking about the fate of your family/dependents, in case you met with an accident and become permanently disabled, send chills down the spine. How will your family survive without you, with no money in hand and all the savings drain in trying to provide you with the best medical aid?

A personal accident policy proactively covers incidents like death, impairment, temporary/permanent disability, bodily hurts or mutilation that occurs due to visible, violent, hazardous or from any foreign material.

The incidents which are covered in this insurance plan are road, air, and rail, injury because of any collision or fall, drowning, burn injury, etc. Such policies diligently safeguard you and your dependents from severe financial repercussions in case of any unfortunate events.

There would be several expenses (EMIs, medical expenses, and miscellaneous expenses) but no source of income; even the savings will be long gone.

Personal accident insurance policy is one efficient tool that offers aid to the individual and/or the dependent in case of unfortunate occasions. It successfully covers medical expenses, compensation in case of demise as well as any loss of income that occurs due to an accident. To avail the benefits of a personal accident policy, one must understand the features of this policy well. Though all these plans are available online, without an understanding of impairment, injury or demise in detail, optimum utilization is not possible.

What is a Personal Accident Health Insurance Policy?

A personal accident health insurance policy provides coverage for expenses incurred on the medical treatments taken for a disability caused by an accident. Alternatively, the policy also provides a benefit amount if the insured individual passes away due to an accident.

Here are the types of benefits most insurers provide under a personal accident health insurance policy:

  • Accidental death: The nominee will be given a predetermined benefit amount in case the insured individual expires due to an accident.
  • Permanent partial disability: In case an insured person is partially disabled i.e. if he/she lost an index finger, a thumb, an ear, an eye, etc. due to an accident, a certain amount, as promised by the insurance company, is provided to him/her.
  • Permanent total disability: A permanent total disability could mean the loss of both ears, both eyes, one limb, and so on. If an accident leads to the permanent total disability of the insured, he/she is given a benefit amount as mentioned in the policy.

Additional Benefits of Personal Accident Health Insurance Policy

While the above-mentioned benefits are the key benefits provided by most health insurance companies under a personal accident plan, here are a few additional benefits that insurers may offer:

  • Funeral expenses: This will come into effect if the insured person passes away due to an accident. In this case, the funeral expenses of a certain range will be reimbursed to the insured’s family.
  • Temporary total disability: If the insured person suffers from a total disability for a temporary period, a certain benefit amount is paid to the person.
  • Child education benefit: In case the insured individual is permanently disabled or has passed away, a fixed amount is provided on a regular basis to help fund his/her child’s education.
  • Accident hospitalisation: A few insurance companies cover the hospitalisation expenses incurred by the policyholder when he/she is hospitalised due to an accident.

Personal accident policies, like regular health insurance policies, have exclusions too. A disability caused by voluntary participation in dangerous activities, self-harm, mental instability, pre-existing diseases, etc. are not covered under the policy.

Types of Personal Accident Insurance Policies

There are 2 types of personal accident insurance policies customers can purchase:

  • Individual Accident Insurance Policy

This policy offers financial protection if the policyholder dies, is injured, or temporarily or permanently disabled following an accident. In the case of unforeseen death of the policyholder, a lump sum payout is made to the dependents.

  • Group Accident Insurance Policy 

A Group Accident Insurance Policy is typically availed by an employer of an organisation to offer financial security to the dependents of the employee following an accident. The Group Accident Insurance policy also offers financial coverage to the dependents if the employee i.e the insured person dies following an accident, suffers from bodily injury, or temporary or permanent disability.

Personal Accident Insurance Claim Process

The claim process of a Personal Accident Policy is chosen by the provider of the policy. It may differ from provider to provider. However, there are some basic steps of the policy that you must know to make the right buying decision.

Intimating the provider: The first step is to intimate the provider about the occurrence of the accident in the company specified time frame. You will need the following documents while filing the claim form:

  • Contact numbers
  • Policy details like the number
  • Details of the accident like date, time & location
  • Details of the injured person like name & contact number
  • Brief details of how the accident happened
  • Degree of loss

In the case of death due to an accident, you need to submit the following documents:

  • Death certificate
  • Post-mortem report
  • FIR Report
  • Medical Certificate
  • Medicine bills

Tax Benefit Of Personal Accident Insurance

Section 80D of the Income Tax Act of India, 1961 does not offer any rebate on the premiums paid for the fulfillment of this policy that offers insurance against demise or any other physical impairment due to an accident. However, this shall not be considered as a point to analyze the importance of this policy

FAQs

You can send a request mail to the insurer for extension of the policy along with health declaration attached to it.

It is an Insurance Policy that covers all the expenses incurred for hospitalization, medication, etc. in the case of injury/ impairment/demise due to an unfortunate event. This event can occur due to rail/road/ air collision, explosion, fire, etc. The insurance offers monetary benefits to the policyholder or the dependent as per the plan.

  • Demise due to an accident
  • Permanent (partial) disability
  • Dismemberment
  • Medical Expenses

  • Pre-existing disability or injury
  • Non Allopathic treatments
  • Suicide or self-harming acts
  • Accident because of the influence of alcohol or drugs
  • Illegal activities
  • Mental disorder
  • Pregnancy or Childbirth

  • High Coverage
  • Coverage despite any medical condition
  • Lifestyle support post-accident to the policyholder or the family.
  • Disability coverage
  • Education support
  • Hospitalization/ medication charges cover
  • Flexible plan

In today’s world of uncertainties, there is no assurance you may travel safely when out of your safe den. An unfortunate event can severely harm your well-being and affect your overall lifestyle. Availing Personal Accident Policy offers you a cover against all such uncertainties.

The policies do not have any set period for claiming the benefits. A policyholder can claim the benefits as and when needed.

Case I: In case of Temporary Total Disablement

  • Claim Form
  • Medical Certificate
  • Leave approval from the employer
  • Discharge summary

Case II: In case of Permanent Total Disability (PTD) and Permanent Partial Disability (PPD)

  • Claim Form
  • Medical Report
  • Certificate of disability from a certified doctor

Case III: In case of Death Claim

  • FIR
  • Post Mortem report
  • Death certificate

Case IV: Medical Expenses

  • Medical bills
  • Hospital bills
  • Medicine prescriptions

Age limit: 5 years up to 65 years.

The spouse along with 2 children can be added in the family plan of a personal accident insurance policy.

Yes, you can add your parents as well in the policy up to an age of 70 years and if they are dependent.

The policy will be activated after 15 days from the date of commencement of the policy.

Yes, this policy will work in civil war injuries also, no need to worry more just buy personal accident insurance policy now.

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