Personal Accident cover: A comprehensive guide

Do you travel frequently for professional or personal reasons? A Health Insurance Policy can cover hospitalisation costs, while a Life Insurance Policy covers death due to an accident. However, Personal Accident Insurance offers many additional benefits beyond these. Personal Accident Insurance provides coverage for injuries, death, and disabilities arising from an accident through a fixed payout upon the occurrence of a specified event resulting from an accident.

It may provide other optional benefits, such as ambulance costs, funeral expenses, hospital cash benefits, hospitalisation expenses, protection against loss of income, and child education benefits, among others.

Coverage under this policy

1. Accidental death: If the insured gets injured in an accident and it results in death, 100% of the sum assured will be paid. The amount will be paid to the nominee or legal heir.
2. Permanent total disablement: If the insured suffers from permanent total disablement due to an accident, 100% of the sum assured will be paid. The permanent total disablement should be of the specified nature as per the policy terms. For example, total and irrecoverable loss of sight in both eyes, loss of use of both hands and feet, etc.
3. Permanent partial disability: If you suffer from permanent partial disability in an accident, you receive a specified percentage of the sum assured. The permanent partial disability should be of the specified nature. Check the Accident Insurance Policy agreement to determine the percentage of the sum insured that is paid for it.

Optional benefits

• Suppose the insured suffers from a temporary total disability caused by an accident and is incapacitated from their employment. In that case, they receive specified compensation at a specified frequency, as outlined in the policy terms. There may be a maximum limit on the number of weeks for which the benefit can be received.
• If the insured is injured and is hospitalised for a minimum of 24 hours, the Accidental Insurance coverage includes hospitalisation expenses. Check the policy conditions for inclusions, exclusions, duration of coverage, any limits on coverage, etc.
• If the insured is hospitalised due to an accident, the policy will pay a daily benefit of a specified amount.
• If the insured sustains a bodily injury which results in a certain degree of burns, the policy will pay a specified percentage of the sum insured. The amount payable will depend on the degree of burn and the part of the body where it has occurred.
• If an accident results in the insured’s death or permanent total disability, the policy will provide a child education benefit, which may be up to a certain percentage of the sum assured and payable per dependent child pursuing full-time education.

Conclusion

A Personal Accident Policy serves a specific purpose and should be added to your portfolio alongside Life, Health, and Critical Illness Insurance. An individual cannot control unexpected events. They can be well-prepared with financial protection through Insurance Policies.