Personal accident cover provides coverage against accidental injuries. It pays for hospitalization expenses when incurred due to an accident. Despite all the precautions we take, we are prone to accidents and that is why one needs personal accident cover.
Sometimes, it so happens that the accident not only affects one physically but also financially. It might so happen that the accident might not leave you with a healthy body capable of taking the workload it was before. Thus, it is only sensible to have a this policy.
How a Personal Accident Cover Works
In the event of the accident, there are three possibilities:
- Permanent Disablement: In the event of permanent disablement, the policy pays a certain amount to the insured.
- Partial disablement: If partial disablement is caused due to an accident, a certain sum insured is paid. This sum is determined on the basis of the loss suffered by the policyholder.
- Temporary disablement: When the policyholder is confined to the bed for a short time, the policy then offers financial assistance for some weeks.
The benefit is payable to the policyholder either in a lump sum or on a monthly basis. The tax exemption is available for the premiums and the benefit under the policy.
It is important to understand what personal accident cover provides cover for.
- After the occurrence of the unfortunate event, for a certain number of days, the policy covers the medical costs.
- The ambulance changes are said to be covered.
- If the accident results in burns, the policyholder is paid the benefit insured.
- If the accident caused the death of the insured, the policy covers the child’s education. However, coverage has a limit.
- Benefits are provided if the injuries occur due to a terrorist attack.
While discussing what the personal accident covers, it is equally essential to know what it does not cover. These include:
- Self-inflicted injuries
- Dental injuries
- Injuries which occur while one is under the influence
- Injuries which occur while committing a crime
- Accidents that occur due to a result of prior illness.
Reasons to Buy a Personal Accident Cover Policy
- Add on insurance: Life policies and health policies let you add personal accident cover in case of death and disability. You can enhance the coverage for medical emergencies with help of personal accident cover in your plan.
- Cost-effective policy: Personal accident cover is available with low premiums. For example, a 30-year old buying a plan of Rs 10 lakh which also covers disabilities will have to pay a premium of less than Rs 1000 for a year.
- Additional benefit: One can cover additional expenses such as OPD for medical fractures, accidental medical expenses under this policy. This policy also provides cover with lifelong renewability.
- Accidental death benefit: This policy provides pays 100% sum assured in case of death by accident.
- Family security: A personal accidental policy covers the family to ensure complete financial security. The accidental disablement affects the employment of the policyholder and thus the income of the family. This policy thereby provides financial support to the family.
- Child’s education benefit: Some insurance benefits include paying for the child’s education in case of the death of the policyholder. It is an add-on benefit of personal accident cover which makes this policy more appealing.
- Easy claim settlement: The claim settlement process is very simple and hassle-free. The insured has to give the necessary details about the accident and the time of the event, date policy number and other details. Once all the information is provided, the claim settlement process begins immediately.
- Hassle-free documentation: This is very simple insurance and requires very little documentation. You don’t require to go for medical tests while availing of the policy.