Personal Accident Insurance Policy provides financial coverage against any uncertainties such as accidental bodily injuries, accidental death, permanent disability or partial disability, loss of eyes, limbs, and speech that occurred from an accident. If the policyholder dies due to an accident in the policy period, the nominee will receive the amount of sum assured from the insurance company.
Why choose Accident Insurance Policy?
A personal accident insurance policy offers financial support to the policyholder in case of accidental disabilities, regardless of the deepness of the incident. Compensation is provided to the insured against accidental death, damage, and postmortem because of an accident. In case of an accident while traveling through rail, air, road, drowning, or due to a collision, bodily injuries, burn, etc.
In case of unfortunate accidental death of the policyholder, the best personal accident insurance plans in India help the dependent members by providing them financial assistance. In case of impairment resulting from an accident, the customer will also get compensation for the loss of income. It ensures peace of mind as it guards against the most unexpected events.
How to File an Accidental Insurance Claim?
To file an Accident Insurance Claim process, inform the insurer within the specified time to be provided with a claim reference number. Below are the required details submitted:-
- Policy Number
- Name and Contact Details of the injured person
- Accident Date and Time
- Location of the incident
- Duration of the loss
Documents Required:
- Death certificate
- Post-mortem report
- Medical certificate
- FIR report
- Medicine bills
Types of Personal Accident Insurance Policy:
Personal Accident Insurance is further divided into individual accident insurance and group accident insurance.
1. Individual Accident Insurance:
This Individual Accident Insurance covers any individual from accidental death, loss of limbs or sight, or permanent disability due to accidental damage.
2. Group Accident Insurance:
This Group Accident Insurance covers employees by their employers. The premiums are given according to the group size of the insurance policy. It is available at a low cost for small organizations.
Coverages of Accident Insurance Policy:
Accident insurance policy has coverage benefits of four types listed below:-
Accident Death Cover: It covers the death-infused family members; in case of incurable injuries to the policyholder the entire sum assured is paid to the nominee as mentioned in the policy document.
Temporary disability: In case the customer with temporary total disabilities and is disabled, then the insurer will provide a weekly allowance to damages the loss of income. The insured can also utilize this claim amount to pay the EMIs, in case there is a loss of earnings.
Permanent/Total Disability Cover: It covers the person with permanent disability or lifelong total disability that occurred due to an accident, the total sum insured amount is paid to the policyholder.
Partial Disability: If bodily injuries occurring due to an accident result in partial disability, the benefited amount is paid to the insured.
Advantages and Disadvantages of Accident Insurance Policy:
Advantages:
There are certain advantages under the personal accident policy which are mentioned below:-
- An accident Insurance policy provides family financial security due to accident death
- No Medical tests required
- Zero paperwork
- Coverage at a lower premium
- 24/7 customer service support
- Child education benefit
- Customized plans
- Double indemnity for the demise
- Legal and funeral expenses are covered
- Easy Claim process
Disadvantages:
There are certain Disadvantages under the personal accident policy which are mentioned below:-
- Not covers natural death
- Not covers pre-existing disability or injury
- Suicide or self-injuries
- Childbirth or pregnancy
- Committing a criminal act or being involved in war activities
- Suffering from a mental disorder.
Exclusions:
There are certain exclusions under the personal accident policy which are mentioned below:-
- Suicide attempted suicide, etc.
- Any claim resulting out of childbirth or pregnancy etc.
- Any claim resulting out of War and nuclear perils
- Any claim resulting out of Ionizing radiation or radioactivity
- HIV/AIDS or death due to any disease
- Natural death
- Death under the influence of alcohol, drugs, or intoxication liquor
- For any bodily injury which occurs due to participating in any criminal activity or any breach of law with that of criminal intention.
- Treatment of nervous or mental disorders
Benefits of Accident Insurance Policy:
Various other benefits come with a personal accident insurance policy. Some insurers may provide these benefits in the basic plan or you can buy them as an add-on cover by paying an extra premium:
Hospital Daily Cash: Daily cash allowance is paid to the insured in case of an accidental hospitalization. Coverage is limited to a certain number of days.
Ambulance Expenses: Compensation is provided for ambulance charges to carry the insured post-accident to the hospital.
Bones Broken & Burns: In case of fractured bones or any bone damage, and accidental burns a fixed compensation is payable under the policy.
Child Education: In case of the unexpected demise of the policyholder, the cost of education of the dependent child is covered up to a specified limit.
Transportation: In case of accidental death of the policyholder, the nominee would receive the expense incurred on recovery and transportation of the mortal remains from the site of the accident to the hospital, home, or the cremation ground. Compensation is also provided for the expenses incurred on the religious ceremonies related to cremation.
Features of Accident Insurance Policy:
- 24x7 coverage: No matter where you are, can be covered for up to Rs. 1 crore
- Family Coverage: cover your family members for a percentage of your sum insured
- Sum Insured: As per the eligibility the sum insured value is based on the policy you have chosen.
- Claim Settlement Ratio: The claim settlement ratio is 99.9%
- Documentation: Zero paperwork and online policy purchase
Accident Insurance Policy Add-ons/Riders:
Personal accident policies are designed to include certain add-ons or riders to increase the coverage under the personal accident policy. The add-ons under the personal accident policy are offered on payment of additional premium. Let us understand the add-ons or riders available in the personal accident policy:
Medical expense cover: This add-on covers the medical expenses incurred on the treatment of accidental injuries. The maximum sum insured under this add-on would be Rs.2 lacs which can be used at the time of hospitalization due to an accident.
Educational Grant: This add-on provides a one-time educational grant for children in case of the death of the policyholder due to an accident. On payment of additional premium, a one-time settlement is done to the family of the deceased for the children to continue their education.
Residence/Vehicle Modification: This add-on provides the cash benefit to the policyholders so that they can get coverage for expenses that would be incurred towards the modification of the vehicle or residence. The add-on would be available on payment of additional premium or may come as an in-built cover in the base personal accident policy.
Travel Expense: This add-on would be useful in case the insured expired in a foreign country and the mortal remains are to be bought in the insured’s country. The travel expenses of the relative would be paid by the insurance company in the above-mentioned case if this add-on opts under the personal accident policy.
Blood purchase: Accident cases required blood to be infused into the customer at the time of hospitalization. The insurance company pays the actual purchase cost of the blood through a Government approved blood bank or hospital. There could be rare blood groups where the cost of blood would be considerably high and this add-on could help the insured customer.
Weekly Compensation: Weekly compensation can be availed by the insured customer in case of accidental total disability up to 102 weeks depending on the type of policy selected by the customer. The weekly compensation would be paid to the customer till the end of the period mentioned in the policy copy or till the time the insured is recovered.
Home disorder benefit: In case of disability of the policyholder, the treatment may be carried out at the residence of the policyholder for which the insurance company would pay home weakness benefit to the policyholder. The benefit is available on payment of additional premium and the convalescence benefit would be payable only after the recommendation of the treating doctor.
Loan protection cover: The loan protection cover aims to settle the outstanding loan of the insured at the time of death. The premium for this add-on has to be paid separately by the insured customer. The loan protection cover settles the outstanding loan of the policyholder at the time of death and pays the remaining amount to the nominee of the policyholder.
Funeral Expenses: The funeral expenses of the customer would be reimbursed by the insurance company in case of the death of the policyholder during the policy period. The funeral expenses would be the fixed amount as mentioned in the schedule for the funeral expenses of the insured person.
Difference between Accident Insurance and Critical Illness Insurance:
Personal accident insurance does not cover diseases or illnesses and cashless or reimbursement claims are allowed. A critical illness covers cancer, tuberculosis, etc., Compensation can be provided based on diagnosis reports.
|
Accident Insurance |
Critical Illness Insurance |
| Coverage |
It does not cover diseases or illness |
It covers critical illnesses like cancer, tuberculosis, etc. |
| Features |
Cashless or reimbursement claims are allowed |
Compensation can be provided based on diagnosis reports. |
| Importance |
Compensation is only provided for accidental damages |
Covers critical illnesses like kidney failure, cancer, paralysis, etc. |
| Waiting Period |
No waiting Period |
Up to 3 months |
| Medical Check-up |
No medical required |
Medical check-up required |
Personal Accident Insurance and Life Insurance
Difference between Personal Accident Insurance and Life Insurance is a Life insurance policy covers the death of the policyholder due to natural reasons or accidental causes. But a personal accident insurance policy would only offer coverage for death and disabilities caused by an accident. It would not cover claims arising due to natural deaths.
Personal Accident Insurance and Term Insurance
Difference between Personal Accident Insurance and Term Insurance is a term insurance policy covers the death of the policyholder due to natural reasons or accidental causes. But a personal accident insurance policy would only offer coverage for death and disabilities caused by an accident. It would not cover claims arising due to natural deaths.