Personal Accident Cover is a must have insurance - whether as a rider to your existing life, health or vehicle insurance policy, or as a separate policy - to protect your wealth from the looming threats of an accident.
Every minute, one person dies of an accident in India. According to National Crime Records Beureu (NCRB), 3.97 lakh people died in 2021 because of accidents. Also, 3,77 lakh people were seriously injured. Most of the victims were in the age group of 18-45 - the prime working age group.
The Gap between Life Insurance & Health Insurance
Accidents are a harsh and unwanted reality, and more so in a country like India. A first layer of accidental protection is absolutely necessary for all families.
A separate accidental cover or an accident rider within your life insurance term policy or a health insurance policy is a definite must because of the simple fact that an accident insurance covers the gap between a health insurance and life insurance cover.
Yes, there is a gap – a pretty big one – between the boundaries of a health insurance cover and a life insurance cover – and nothing covers this gap except an accidental cover.
Let us take a scenario where you or any of your family member meets with a serious accident but survives the accident. Now, term cover is not applicable in this case since you survived.
Now, the victim is hospitalized for a few months. The hospitalization expenses were covered by your health insurance policy but what after the hospitalization. Let us say that the victim undergoes a partial or a permanent disability like loss of a limb, eye or any other body organ. What if the impact is on the mental wellbeing of the victim? What if the victim is now no longer fit for the job he or she was earlier doing? Well, all these are practical possibilities which fall through the crack between life insurance and health insurance coverage since health insurance coverage would also not cover these.
Therefore, it is vital that you take an accidental cover or an accidental rider in any of your existing health or life insurance policies.
Personal Accident Cover in Vehicle Insurance
A personal accident policy cover in a Motor Insurance is a compulsory facility for the owner-driver. It is a compulsory extension to be taken by the owner of the vehicle under Motor Policy, whether you’re opting for either of a Comprehensive Package or Third-Party Liability Policy.
The compulsory PA policy under motor insurance is issued in the name of the owner of the vehicle. He/She is entitled to the cover only if they possess a valid driving license. If you don't have a PA cover, you can opt for the same when you buy your car insurance or two-wheeler insurance.
But remember the following limitations for a PA cover with your Vehicle insurance:
- only covers accident cases that happen with your vehicle.
- Accidents are not only Road Accidents. Accidents can happen at your workplace, while walking, while playing etc.
- limited to a maximum cover of 15 lacs - which may not be enough for you.
Coverage available in Accident Insurance
You can avail the following coverage benefits with a personal accident insurance policy –
Accidental Death Cover
An accident can be both emotionally and financially devastating for the dependent family members. In case of fatal injuries, the entire sum assured is paid to the nominee as mentioned in the policy document.
Permanent/Total Disability Cover
In case an accident results in permanent disabilities or lifelong total impairment such as loss of both the limbs, then a specified sum insured amount is paid to the policyholder.
Permanent Partial Disability Cover
If bodily injuries, resulting in permanent partial disabilities, then a certain percentage (up to 100%) of the benefit is paid to the insured.
Temporary Total Disability
In case the insured meets with temporary total disabilities and is bedridden, then the insurer will provide a weekly allowance to recompense the loss of income. The insured can also utilize this claim amount to pay the EMIs, in case there is a loss of earnings.
Major Inclusions
Some of the major scenarios that are usually included in a personal accident cover are as follows:
- Accidental death
- Permanent total/ partial disability
- Accidental dismemberment
- Medical expenses/ hospitalization charges
- Child education support
- Life support benefit
- Burns, broken bones and Ambulance
- Daily allowance
Major Exclusions
Some of the major scenarios that are usually NOT included in a personal accident cover are as follows:
- Natural death
- Pre-existing disability or injury
- Childbirth or pregnancy
- Suicide or self-injuries
- Non-allopathic treatments
- Influence of intoxicants
- Committing a criminal act or being involved in war activities, suffering from a mental disorder
- Participating in the naval, military, air force, adventurous or sports activities
What is covered or not in the accidental cover should be clearly document and well read by the policy holder before buying the policy.
Regards
Manoj Arora
Official Website
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