Personal Accident Insurance: Learn Everything You Need to Know
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Personal accident insurance is useful to get financial assistance to you and your family in the event of an accident that leads to death, bodily injuries, temporary total disability, permanent total disability and permanent partial disability. In the event of death, the insurance company will pay 100% compensation (equal to the sum assured) to the appointed nominee. Also, the insurance companies offer compensation for an accident disability such as loss of speech, limbs and eyes.
Types of Personal Accident Insurance
Personal accident insurance can be broadly classified into two categories – Group Accident Insurance and Individual Accident Insurance.
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Group Personal Accident Insurance
Typically, the business owners and employers buy group personal accident insurance to cover their employees. Depending on the size of the organisation, and the number of employees, the insurance companies offer a discount on the premium. A group personal accident policy is an excellent incentive for the employees as it assures them financial safety in the event of any mishap at the workplace.
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Individual Personal Accident Insurance
As the name suggests, it is taken by an individual and it guards the policyholders against accidental damages. It usually covers accidental death, loss of body parts and other disabilities resulting from an accident.
Importance of Personal Accident Insurance
Personal Accident insurance has many benefits, which are:
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Peace of mind and family security
In the event of an accident that causes death or renders you disabled, it would have a significant impact on your earning potential. An accident cover will give your family financial protection in the form of accidental compensation and ensure their financial security. The insurance companies pay 100% compensation in the event of death. The family members can use the amount to pay off the liabilities (if any) and maintain the usual lifestyle. Also, it gives you the peace of mind knowing that your family will be financially secured even in your absence.
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Minimal documentation
One of the significant reasons why a lot of people avoid buying insurance is that they believe the process is complicated, and it involves a lot of paperwork. However, the truth is that when you purchase a personal accident insurance policy, you need not stress about the documentation. You must provide basic details in the application form, and the insurance company will issue the policy.
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No medical tests required
This is another significant benefit of an accident insurance policy. Unlike the health insurance policy, where the insurance company requires you to undergo medical tests before issuing the policy, you need not take any tests.
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Worldwide coverage
Most types of insurance covers have a geographical limitation, which means they do not offer compensation for any casualty that occurs outside India. But, with personal accident policy, there is no such limitation. You can be assured of getting the benefit irrespective of the location of the accident; you get worldwide coverage.
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Easy Claim Process
One of the critical things that most insurance buyers look for while buying personal accident insurance is an easy claim process. No matter what type of policy you choose, the claim process is easy. You must submit an application to the insurance company (you can do this either online or offline) and once the insurance company verifies the claim, the claim amount is paid-out.
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Ambulance Expenses
Most insurance companies cover the ambulance expenses to carry the injured to the hospital from the accident spot.
Conclusion
Just as it is essential to give your family financial protection in the event of your demise, you must also think about how they would manage in case of an accident that may lead to disability. You must be prepared for such unexpected situations with accident insurance. Make sure that you know the inclusions, exclusions and other terms and conditions of the policy before you sign the policy.
Check out the various benefits of health insurance plans for more information!
Also read- Know The Difference Between Incurred And Incurred Claim Ratios.
