Do you need a personal accident insurance policy?

Accidents happen every day and getting yourself insured against them will be beneficial for you and your family.

Kavya Balaji   /   March 9, 2021

Since 2009, India has been one of the top countries with high road accidents. These accidents have led to death, disability or injuries to the parties involved. Only those who have a personal accident policy can get compensated for the losses after the accident. A personal accident insurance policy takes care of expenses for disability and injuries and compensates for income loss to the policyholder. There are many benefits you can get from personal accident insurance. However, before that you need to understand what personal accident insurance is.

What is personal accident insurance?

Personal accident insurance is an insurance policy that reimburses your medical costs, provides compensation in case of disability or death caused by accidents. These are expenses which your life insurance or health insurance may not compensate. Accidents can cause partial or total disability which might lead to loss of job. A personal accident insurance policy can compensate for this. 

What are the benefits of personal accident insurance?

Disability covered – A personal accident insurance policy coverstemporary or permanent disability that may occur in the aftermath of an accident. Compensation can be claimed for various kinds of disability. For instance, loss of both hands or feet, one hand or one foot, or an eye is covered under the policy. Even loss of hearing in one ear is compensated by the insurance company. 

Major hospital bills included – The personal accident policy takes care of the hospital bills and medical treatment that you might need after the accident. The policy covers other expenses such as repatriation charges, and ambulance charges.

Home, vehicle alterations – If the policyholder is wheelchair-bound after the accident and needs to modify their vehicle for usage, they can claim it under the personal accident insurance policy. Here, even alterations to the house will be covered. For instance, if there is a need to construct a ramp for the wheelchair, then the expenses are compensated by the personal accident policy. So, you could ask the insurer to compensate you for those changes. 

Death of the policyholder – The personal accident insurance policy disburses compensation to the family if the policyholder dies after an accident. If the policyholder has young children, the personal accident policy will take care of their education. Most of the insurance companies pay 10% of the sum assured or the actual tuition fee charged by the education institution, whichever is lower.

Family transportation – If the policyholder is hospitalised in a place that is more than 150 kms of his/her residence after the accident, the insurance company will compensate the transportation costs that are incurred by the family to meet the policyholder. 

Terrorism Act – Some of the personal accident insurance policies cover any injuries caused by terrorists to the policyholder.

What are the eligibility criteria for personal accident insurance?

Anyone over 18 years of age is eligible to buy a personal accident insurance policy. However, you can take a policy for children as dependents. The maximum entry age for the policy is usually 65 years. However, this may vary for different insurance providers. 

What is the personal accident insurance claim process?

After the accident, the policyholder needs to immediately inform the customer care of the insurance company. This can be done using the website of the insurance provider or the customer care number provided. You need to give the details of the personal accident policy. You can download the claim form and get someone to download it and fill the form. Other documents will be needed along with the claim form based on whether there has been death, disability or injuries. 

Once you submit all the required documents, the insurance company will conduct a scrutiny to understand whether the policyholder’s claim is genuine. If the claim is approved, the insurance company will transfer the payment to your bank account. If the claim is rejected, you can provide additional supporting details to make sure that the company accepts the claim.

What are the exclusions to personal accident insurance?

While some of the exclusions may differ according to the plans provided by different insurance companies, the most common exclusions are listed here.

  • Pre-existing disability or injuries
  • Accidents caused because of intoxication (alcohol, drugs etc.)
  • Intentional suicide attempt
  • Accidents because of participation in unsafe and dangerous sports
  • Accidents that involved committing criminal act 
  • Accidents that are caused by mental disorder
  • Childbirth or pregnancy
  • Accidents treated using non-allopathic treatments

The premium for personal accident policies is usually not very high and can be purchased easily from general insurance companies. 

Need help choosing a policy? Get in touch with experts at Wealthzi.com.

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