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.

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.

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.

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