Personal Accident Insurance is a type of health insurance that covers the insured in case of loss of life, permanent total disability, permanent partial disability, and death arising due to an accident of general nature related to work or travel.

Why Should I Buy Personal Accident Insurance?

As per ministry of Road transport and highways, there were 3.66 lakh accidents alone in 2020 and nearly 1.32 lakh people died due to accident on Indian roads. An accident can have a severe impact on one’s life whether it is a minor accident or a major one. Not only it affects the overall well-being of an individual but also decreases their savings. A personal accident policy is designed to offer some financial relief to the injured person or dependent in case of an unfortunate event of an accident.

The policy provides compensation to the insured in case of an unfortunate event of death, bodily injuries, disability or impairment due to an accident. The insured will be compensated if the accident happened due to travelling by air, rail, road, drowning, bodily injuries, burn, or a collision.

Another benefit of a personal accident policy is that it offers cover to the policyholder for disabilities arising due to an accident. The compensation is offered in case of impairment, dismemberment, or death due to an accident. In case an accident leads to impairment, then the insured will also get compensation for the loss of income.

It might be tough to overcome such difficult times but a reliable personal accident plan may make it easier for you. The plan allows you the utmost peace of mind even in difficult times by offering you insurance cover for hospital bills, ambulance expenses incurred due to transportation of the patient to the nearest hospital, medical bills, etc.

Advantages of Personal Accident Health Insurance

You can enjoy the following coverage benefits under a personal accident health insurance policy:

• Accidental Death Cover: A death due to accident can have adverse effects emotionally as well as financially on the dependent family members. In such a case, a personal accident insurance cover provides the nominee the entire sum insuredas specified in the policy document.
• Permanent/Total Disability Cover: If an accident leads to lifelong total impairment or permanent disability like loss of limbs, then the insured will be provided a specific sum insured.
• Permanent Partial Disability Cover: In the case of bodily injuries that lead to permanent partial disabilities, the insured is provided a certain percentage of the sum insured.
• Temporary Total Disability: If the insured individual is bedridden due to temporary total disabilities, then he/she will be provided a weekly allowance to compensate for the loss of income for that period. This amount can also be used to pay off the EMIs if any.
• Hospital Daily Cash: In addition to the primary coverage benefits, a personal accident cover also offers you daily cash benefit in case of hospitalisation due to an accident. The benefitcan be availed for a specific number of days as specified in the terms and conditions under the policy.
• Expenses Related to Ambulance Services: Personal accident insurance policy covers ambulance expenses incurred to carry the insured to the hospital in case of an accident.
• Repatriation or Transportation of Mortal Remains: If the insured dies due to an accident, then the nominee is provided the expenses incurred arising due to repatriation and transportation of the mortal remains from the place of accident to the hospital, cremation ground, or home. Also, the nominee will be compensated for the expenses related to religious ceremonies.
• Broken Bones: A personal accident policy pays a fixed compensation to the insured in case he/she gets injured with fractured bones or any bone damage due to an accident.
• Burns: The insured gets insurance cover in case of accidental burns.
• Family Transportation Allowance: This benefit provides cover to the immediate family members of the insured for the expenses incurred on transportation to reach the insured. The cover proves to be beneficial in case the hospital is far away from the insured’s residence.
• Education Advantage: The education advantage benefit provides cover for the education expenses of the dependent child in case of the unexpected demise of the policyholder due to a misfortune event of an accident.
• Loan Protector: If the accident results in unexpected death or lifelong disabilities of the insured, then this benefit offers a lump sum amount as mentioned in the policy schedule.
• Adaptation Allowance: Adaptation allowance, also known as home alteration and vehicle modification benefit is offered by a few insurance companies. Under this benefit, the insurance company offers money to modify one’s house and/or vehicle in case of permanent total disabilities or disbursement arising due to an accident.

Accidental Death Cover and permanent total and partial disability are the basic benefits (base cover) of personal accidental policy and the rest are optional benefits, you can avail them at additional cost.

Personal Accidental policy is better alternative to an Accidental Death and Disability benefit Rider in Life Insurance policy as it works out to be cost effective and has more advantages than an Accidental Death and Disability benefit Rider.