Personal accident insurance, also known as personal accident cover, provides financial protection in case of accidents resulting in injury or death. It is an important form of insurance for anyone concerned about the financial consequences of an accident.
In this blog, we will discuss the inclusions of personal accident insurance, so you can decide whether it is right for you.
What is covered under personal accident insurance?
Personal accident insurance typically covers the following:
- Death: In the event of death resulting from an accident, the policy will pay out a lump sum to the policyholder’s beneficiaries.
- Permanent disability: If the policyholder is permanently disabled due to an accident, the policy will pay a lump sum. The definition of permanent disability will vary depending on the procedure, but it generally means that the policyholder cannot work or perform normal activities due to the accident.
- Temporary disability: If the policyholder is temporarily disabled due to an accident, the policy will pay out a weekly or monthly benefit. The benefit will typically be paid until the policyholder can return to work or until a specified maximum benefit period has been reached.
- Medical expenses: Many personal accident policies also cover medical costs resulting from an accident. This can include hospital stays, doctor visits, and prescription drugs.
- Funeral expenses: If the policyholder dies due to an accident, the policy will pay for funeral expenses.
It is important to note that personal accident insurance does not cover accidents that occur while the policyholder participates in certain activities, such as bungee jumping or skydiving. These exclusions will be specified in the policy.
What are the types of Personal accident insurance?
There are two main types of personal accident insurance –
- Individual personal accident insurance: This type of insurance is purchased by an individual and covers that person only. It is typically more expensive than group private accident insurance.
- Group personal accident insurance: This type of insurance is purchased by an employer or organization and covers all employees or members. It is typically less expensive than individual private accident insurance.
How to choose the right policy?
When choosing a personal accident insurance policy, it is important to consider the following:
- Coverage: Make sure the policy covers the most important things to you. For example, if you are concerned about the financial consequences of permanent disability, make sure the policy has a good definition of permanent disability and a generous benefit for it.
- Exclusions: Make sure you understand what is not covered by the policy.
- Premium: Compare the tip (the cost of the policy) of different approaches.
- The reputation of the company: Look for a reputable company with a good track record of paying claims.
- Benefits: Look for the policy that has the most required benefits.
In conclusion, personal accident insurance can provide important financial protection in accidents resulting in injury or death. It is an important form of insurance for anyone concerned about the economic consequences of an accident. When choosing a personal accident insurance policy, it is important to consider the coverage, exclusions, premium, reputation of the company, and benefits most important to you. So, choose a policy that best suits your needs and budget.
