Need for Personal Accident Insurance Policy
Accidents to happen to anyone. Every day we are exposed to the danger of being hurt. Accidents can happen due to any reason, like it can be car accident, improper infrastructure at work place, and as any accident occurs it has crucial implications. Most of the time, it can leave a permanent physical and financial damage.
Let’s use an example for better understanding:
Mr. Sharma is a top-performing sales manager of his organization and required travelling distances to meet the targets. It was a foggy winter evening. He started his bike from his work place to meet one of his clients. Suddenly, his bike collided with a truck. It was an unfortunate accident and he lost both of his legs. He was not covered by any Personal Accident Insurance Policy, which results in disarrayed financial condition of his entire family.
This case is not a unique one. In fact, the Ministry of Road Transport reveals a report similar to this. A Road accident kills more people than terrorists and natural disasters. This is an alarm for everyone that we must be covered by this policy. With getting yourself covered with this policy at least you will be at peace for your dependents if something like this happens.
Personal Accident Insurance is a type of general insurance. It covers the risk of loss of life and any disability caused by the accident during travel or work.
Burns, cuts, broken bones, ambulance charges, hospitalization due to accidents, loss of limbs/eyesight, etc. are covered by personal accident insurance scheme.
Your insurance policy gaps will get filled automatically with this. In all the cases you ensure a financial stability against losses due to accidents. In case of outstanding liabilities, this policy cover ensures timely repayment of loans in case of loss of repayment capabilities.
Coverage provided by Personal Accident Insurance Policy:
Most of the policies will provide you 100% of sum assured upon your demise due to your accident to your dependents. You will get proportional sum insured in case of temporary/permanent disability.
Let’s see what does this policy cover has to offer from its closet:
1. Accidental Death:
This means that the policy holder dies in the accident or the illness caused due to the accident. In such case, the nominee will gwt the 100% of the sum assured by the insurance company.
2. Permanent Total Disability:
This means that the policy holder will be suffering from a permanent disability sue to the accident continuously for 12 month from the date of accident. It may be loss of limbs or eyesight or one hand or one leg.
In such cases, the policy holder will get the full sum assured by the insurer.
3. Temporary Total Disablement:
If the policy holder ends up with the temporary incapacity that leads him confinement to the home, then the policy holder will get the weekly payment as the time limit that is prescribed. These compensation is helps the policy holder to tide over the short term crisis like loss of pay and medical expenditure on treatment.
How much Cover do you need?
The sum assured is legitimate by the insurer is dependent upon several factors. This may be monthly income, nature of the occupation, marital status, number of dependents in the family, date of birth, pre-existing disabilities and the number of member to insured less than one policy.
Now a question might have hit on your mind. The answer for the question is:
Why Personal Accident Insurance when you have Term Insurance?
Personal Accident policy is considered to be a specialized category of insurance. It has a wide aspect in terms of the extent of risk cover and customization as compared to term policy. You can get additional Accidental benefits at the time of payment of additional premiums for the basic term plan but in the condition that it can only cover you in case of permanent total disability and hence, you will be left unprotected in other circumstances.
Personal Accident gives you a wider coverage at much lower cost as compared to term insurance plan. Thus, it gives you greater protection at comparatively lower cost as compared to term insurance.
Why Personal Accident Insurance when you have Health insurance?
This cover is far more superior to health insurance to cover the risks of accidents. Unlike health insurance, there is no need to undergo any medical checkups in case of personal accident insurance. Moreover there is no waiting period.