What You Need to Know about Personal Accident Insurance in India

Personal accident insurance comes as a standalone policy while its benefits can be combined with an existing health insurance. In India, the insurance market is quite vast and people have multiple choices when it comes to buying a health plan. This, on the other hand, means that you can buy health insurance with additional coverage, thereby including various riders like personal accident cover and so on. Some insurers offer accident insurance benefit along with their health policies, which ensures the policyholder that he or she is going to be safe on the roads.

Personal Accident Insurance

Did any of your friends, essentially the breadwinner in his/her family, meet with an accident that resulted in the loss of income partially or permanently? A personal accident insurance policy covers the whole scenario. In the other words, a health insurance policy that combines the benefits of personal accident bears the expenses incurred for the treatment arising out of the accident and its corresponding loss of income if any. However, the coverage offered by such a policy is strictly subject to the insurer.

Benefits of Personal Accident Insurance

Imagine you are commuting back home after finishing your office work and you meet with an accident that result in severe injuries to you. As a result of the accident, you are not allowed to continue your everyday schedule but rest at home, which could be worse for you, in case you are the breadwinner in the family.

The Extent of Coverage needed

People are often seen confused about when to buy personal accident cover and fail to make a decision. They are advised to take one when they think is the right time to drive on the roads. If you are the breadwinner, make sure you buy such policies for your spouse and children as well. Besides, when it comes to choosing the coverage, consider going for at least 100 times your income per month. Try and find yourself the best accidental insurance plan at a price that you can afford. Let us explain why:

Imagine that you have a fixed income per month is Rs. 25,000. Then, the maximum coverage you can get out of your personal accident policy is not more than Rs. 2, 50,000. Your family or nominee gets the full sum assured of Rs. 2, 50,000 in the event of your unfortunate death in a road accident. If your family has another source of income or if not even, they can get around Rs. 16, 000 to 18, 000 each month, which can be either saved or spent on their everyday expenses. Well, the sum assured is subject to and varies with one insurer to another.

How much is the ideal payout?

Both the sum assured and policy directly affect the payout. Simply put, the payout of your policy depends on the degree of the injury you suffered as well as whether the policy covers the particular injury. For example, up to 100 percent of sum assured is payable if the accident results in the loss one limb or one eye or two limbs or both eyes or the death, whereas only 50 percent of the sum assured is payable if the accident results in the loss of one eye or one limb in particular.

However, in the unfortunate event of permanent or even partial disability, resulting in the loss of income, the payable amount to the insured’s family is strictly subject to the company norms. You can also have a look at the terms and conditions mentioned in the policy documents.

Prateek is a seasoned independent writer. His explanatory and creative writing style helps understand the subject matter easily and offers tips, tricks and expert suggestions for Star Health Insurance polices..