Personal Accident Insurance Policy acts as a supplement to life insurance and health insurance. Your life insurance policy provides financial support to the family. A health insurance policy provides coverage against unexpected hospitalization expenses. But what about accidental death and disability coverage?
Personal accident insurance provides coverage against accidental death and disability. You must be aware that road safety is a serious issue in India. As per statistics in India, more than 1.3 Lakh people die every year in the road accident. Not all accidents result in death. Some accidents also cause temporary/parament disability or loss in income. Term insurance, Life Insurance or health insurance policies do not cover such losses. So, it is highly recommended to purchase a personal accident insurance policy to secure yourself against any unfortunate eventualities. In this post, we will look at What is Personal Accident Insurance? Best Personal Accident Insurance Plan and Claim Process associated with personal accidental insurance.
Also Read – Best Critical illness Insurance Policy Comparison
What is Personal Accident Insurance?
A Personal Accident Insurance is a policy that covers incidents like death, temporary or permanent disability, injury, defacement which take place due to an accident (hazardous or other external means). The accidental events that are considered under accidental insurance policy include air, road, and rail accident by any means. The key features offered by accidental insurance are given below.
Key Features & Coverage
- This policy provides coverage against accidental death, loss of eyesight, hearing, limbs, burns, broken bones etc.
- The policy also covers disablement. In case a person sustains life-long total disablement due to an accident, reimbursement as per policy plan is paid to the policyholder.
- Partial disability or temporary disablement coverage is also offered under the policy and it depends on the extent of injury or percentage of disablement.
- Certain policies pay daily cash for the period policyholder is hospitalized due to an accident. The policy also provides reimbursement of ambulance charges. You need to pay an additional premium for this feature.
- This type of policy provides worldwide coverage. However, the claim amount is paid in rupees only.
- Some policy offers an educational grant. In the case of the demise of the policyholder in an accident. the education expense of a dependent child is covered up to a certain extent.
- Expenses for carriage of dead body of the Insured person to the place of residence.
- Pre-existing disability or injury
- Suicide or Self-harming acts
- An accident because of the influence of drugs or alcohol
- Mental disorder
- Illegal activities
Personal Accident Insurance: Rider vs Standalone Policy
There are two options to cover the risk of an accident via an insurance policy.
- Life Insurance Policy with additional accidental rider
- Standalone Accident Insurance policy
Let us compare the two alternatives.
|Life Insurance with Additional Rider||Standalone Accidental Insurance Policy|
|Rider provides restricted coverage partial disability and loss of body parts are not covered.||Standalone Insurance policy provides comprehensive coverage.|
|Premium of rider will be low but coverage is also limited.||Premium in the case of standalone accidental insurance policy is high.|
|Life Insurance Policy is long term 10-30 Years.||Standalone Accidental Policy are short term 1-3 years.|
|Life Insurance premium does not change over the policy term.||In Standalone plan premium amount may change at the time of renewal.|
|You will get tax benefit for the premium paid as rider premium is clubbed under insurance premium.||No tax benefit provided for the standalone accidental insurance policy.|
Note – Based comparison given above you can select either accidental rider or standalone accidental insurance. If you are planning to purchase standalone personal accident insurance policy here are few most popular and best accident insurance plans.
Best Personal Accident Insurance Plans
Advantage of Personal Accident Insurance
By now you must have understood about importance of accidental insurance policy. The advantages offered by said policy are given below.
- Financial Security of the dependents
- Income Loss benefit
- No medical tests or documentation required
- Lower premium and substantial coverage
- Worldwide coverage
- Options for individual and group coverage
- Customization option is available in the policy
- Child education coverage
Personal Accident Insurance Claim Process
The claim process of a Personal Accident Insurance Policy differs from provider to provider. However, the basic steps for the claim remain the same. You should know those steps when you are buying such policies.
- The first step is intimating the provider about the occurrence of the accident in the specified time frame. You will need document such as detail of accident including date time, detail of injured person, brief detail about accident, degree of loss etc.
- The second step is to fill up the claim form and submit to the provider along with documentary evidence.
- In the case of death due to an accident, you need to provide a death certificate, Post-mortem report, FIR copy, Medical certificate etc.
Once you submit the form along with documents, provider process the claim and send you intimation about approval.
Over to You –
As a prudent financial planner, you should buy either accidental rider along with your life insurance or purchase standalone personal accident insurance policy. It will act as shield against financial losses.
Have you purchased accidental rider or personal accidental insurance?
Do share your experience in the comment section given below.