What is Personal Accidental Insurance Policy?

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It’s by no means possible to put a value to a human life. But what if the main bread-winner of the family falls prey to the clutches of life buy encountering an accident that not any damages him physically but also leaves him in a state of trauma forever? There can be very bad consequences of meeting an accident like death or pause in income, ranging from months to years to even a lifetime. What will you do in such a scenario?

There is little you can do to completely avoid a situation like this. Equip yourself to meet such eventualities with a personal accident insurance policy because accidents and mishaps may not be only traumatic for your loved ones, but may also bring in immense financial instability and insecurities to their lives.

What is Personal Accident Insurance?

A personal Accident Insurance plan are policies which covers a person from accidental death, accidental disability and other consequences of accidents. This cover is different from life insurance or health insurance and has several more benefits. It is an affordable, comprehensive insurance that allows you and your family to be financially sound and secure after an unwanted event.

Why do you need a Personal Accident Insurance?

Insurance is about strategically planning for a better, content life so that even after unexpected difficult times, you can continue to enjoy life. A personal accident Insurance can safeguard you and your family even after an untoward event.

The policy can be taken by any person who is between 5 years to 70 years of age.

What does a Personal Accident Insurance covers?

A personal accident insurance provides compensation towards accidental injury resulting in death or permanent total disablement. Different insurance companies have different set of rules and coverage policies and you can choose a policy that gives you the benefits, which in the long-term would be more beneficial for you dependents. Let us look at some of the common things that are covered under the different accident insurance schemes.

  • Education fund for your children after your demise up to the age of 23 years.
  • Permanent Total/Partial disablement (Loss of both hands, or both feet)
  • Temporary Total Disablement (bed rest for 3 months or facture in hands and legs)
  • Family discounts: when you get your family also covered under the package to a minimum of up to 3 members, you get a discount on the premium.
  • Free lookup period of 15 days
  • Hospital expenses
  • Ambulance charges
  • Mobility Aids: The cover ensures to reimburse a said amount for all the mobility aids like wheelchairs, crutches, artificial limbs, etc.

Some other benefits

  • The personal accidental insurance policy allows compensation for a physical loss in case of disablement or due, which can be claimed within a period of 12 months from the date of accident.
  • In case of disability that does not allow you to continue work, the policy ensures you get monthly amount to sustain the inability to go back to work.
  • In case of death in accident, the policy will give momentary aid to the nominated dependent with the amount decided by the company.

These were some great features of personal accident insurance. So, bring in a personal accident policy in your bouquet of insurance products and secure your family’s future with some of the renowned personal accident policy like L&T personal Accident Insurance.  As the count of accidents is increasing at a tremendous speed, therefore, it becomes even more important to buy a personal accident insurance as early as possible.

What all is not covered?

  • Intentional self-injury, suicide or attempted suicide.
  • Due to intoxicating liquor or drugs.
  • By committing any breach of law with criminal intent.
  • Pre-existing condition or pre-existing physical or mental defect or infirmity.
  • Artistes engaged in hazardous performances, like aircraft pilots and crew are totally excluded.
  • Claims arising of sickness and illness.
  • Childbirth, pregnancy or related ailments.
  • Trespassing into any public or private property.

Know What your Premium Rate Depends Upon

The premium of accidental policy does not depend on age. Whether you are 20 years old or 55 years old, the premiums would be same. Instead the premiums depend on different risk levels which is determined by your occupation, nature of job, and working conditions. So, each kind of job profiles are divided into different risk level.  Let us look at what category your job’s fall under.

Level 1:  Administrative, accountants, doctors, lawyers, teachers and similar occupations. These are those who are less risky and their premiums are lower.

Level 2: Manual labour, builders, contractors, machine operated paid drivers and similar occupations.  These are those who fall under high risky category and their premiums are higher.

Level 3: Workers in underground mines, electric installations with high tension, mountaineers, river rafters and similar occupations. These are those who fall under the category of the most risky and their premiums are higher.

The premium also depends upon the Sum insured opted, table of cover and optional extensions you choose. The premium remains same throughout the life till the age of 70 years.

What are the renewal features?

  • A Personal Accident Insurance allows you to increase the sum insured at the time of renewal.
  • You can also get the renewal bonus if you renew your policy within 30 days from its date of expiry. If, any claim incurred during the break-in period will not be payable.
  • A loading of maximum up to 100% may be considered on the renewal premium based on adverse or recurring claims reported under the expiring policy.

How to claim?

You can ask for a claim immediately of the event or within 30 days from the date of accident. The following details while intimating a claim:

  1. Policy Number
  2. Name of the insured
  3. Location, date and time of loss
  4. Nature and cause of loss

There are several more benefits that can vary from policy to policy. So refer to the insurance policy document carefully.  It is also advised that you compare the policy quotes and choose one that suits you well.

Sneha Jaiswal, a blogger & literature fanatic. Loves doing analysis on any new financial product that comes into market and provides her views. She has written several articles focusing on insurance, auto insurance, general insurance.

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