We step out of the house every day for some work or the other and, despite taking as many precautions as we can, there is still a risk of being involved in an accident on the road. Sometimes, our family members may also become victims of road accidents. In such a situation, getting to the hospital on time is the most important consideration, but once you’ve reached it, you also have to think about managing the expenses. It has often been seen that when a medical emergency arises, hospitals produce huge bills for their emergency services and,  in such a situation, money starts running out rapidly. Those who do not have huge savings may need to immediately start asking for money from friends or relatives. Keeping these unforeseen situations in mind, features like personal accident insurance have been designed, which not only take the responsibility of managing money when needed but also provide other services, so that you can get treatment at a better location.

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  1. What is personal accident insurance
  2. Types of personal accident insurance
  3. Features of group accident insurance
  4. Why is personal accident insurance needed
  5. Who should get personal accident insurance
  6. Features of personal accident insurance
  7. What does personal accident insurance cover
  8. Conclusion

In case of an accident, a health insurance policy like myUpchar Bima Plus can be used. But the importance of personal accident insurance is that it includes an agreement between the insurance company and the person insured, under which if the insured person ever becomes permanently disabled due to an accident, then he can demand compensation from the insurance company. It also covers death, in which compensation is paid to the nominee on the death of the insured and the family does not have to deal with money-related matters.

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There are mainly two types of personal accident insurance:

  • Individual Accident Insurance: This is completely individual insurance; that is, only the person who takes the accident insurance gets the benefit of the insurance.
  • Group Accident Insurance: Group accident insurance is a type of insurance that provides coverage for all its members in cases of disability or death. It is usually offered by employers to their employees but these plans have limited features.

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This type of insurance is given by a club, corporation, association, institution or firm to its employees. There are also some plans that come under this type of insurance in which, if the insured person becomes disabled or dies, then the insurance company gives a lump sum amount for the education of the children dependent on that person. Usually, this type of policy has a tenure of one year. Most of the insurance providers (insurers) also give discounts depending on the strength of their institution or firm.

According to ncrb.gov.in, 4,45,514 road accidents were reported in India in 2018 and 4,37,396 cases were reported in 2019. These accidents usually involve people in the age group of 18 to 45 years. Even if you drive well, sometimes, you can get hurt due to the fault of others. In such a situation, having personal accident insurance is very important.

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Accidents can happen to anyone and at any time, it does not discriminate based on age nor gender. As such, there is no need to have any special reason for getting personal accident insurance. Even so, personal accident insurance is needed by every person going to an office/business or purchasing a car/bike. Apart from this, if you are an employee in a crowded or big city, then you should definitely consider getting this type of insurance.

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The features of personal accident insurance include the following:

  • Financial aid: An accident does not knock before entering your life. It can happen to anyone and your money, saved over the years, can end in a jiffy while completing the hospital formalities. In such a situation, the insurance company can help you bear the financial burden of the treatment.
  • Worldwide coverage: Most types of health insurance have geographical limitations, which means that they do not provide compensation for any accidents that happen outside India. But there is no limit when it comes to personal accident insurance. Suppose you are out of the country and become a victim of an accident, then you or your nominee will be given coverage under the policy bond.
  • Easy claim process: While buying personal accident insurance, many people wonder whether the claim process is difficult or lengthy. Simply put, whether you take individual accident insurance or group accident insurance, generally the process of making a claim is kept simple. For this, you only have to apply (you can do it online or offline) for the claim with the insurance company, after which the claim is verified by the company and the amount is paid.

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  • Low premium rate: The best feature of personal accident insurance is that its premium rate is lower than life and health insurance, due to which there is barely any extra burden on your finances. For example, if you take personal accident insurance of 15 lakhs, then for this you will need to pay only around Rs 3,000 annually. Monthly, this amount is only between Rs 250-300.
  • Medical tests: Unlike some health insurance policies, personal accident insurance does not require any medical tests.
  • Help in maintaining a normal lifestyle: There is hardly anything worse than losing a family member. And, if they were the only person earning in the house, then the source of income also goes away with them. This may give rise to not only financial problems but also mental ones because of the stress and grief of the situation. Personal accident insurance pays compensation to your family after your death. Family members can use this amount to maintain a somewhat normal lifestyle, even as they grieve the death.
  • Minimal documentation: Many people avoid buying insurance simply because they believe that the process can be cumbersome or involve a lot of paperwork. The truth is that you have to provide only basic information in the application form for the insurance company to issue a personal accident insurance policy.
  • Ambulance charges: Most insurance companies cover ambulance charges for taking the injured to the hospital from the accident spot. This is just as necessary as giving financial security to the nominee or family in case of death, as getting an ambulance as soon as possible can reduce the risk of disability.

Before signing the policy, make sure that you know the policy terms and conditions.

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Personal accident insurance mainly covers the following four points:

  • Accidental Death Cover: When the insured person dies due to an accident, the sum assured of the policy is paid to the nominee.
  • Permanent Disability: In case of permanent disability due to an accident, the policyholder is paid the amount fixed at the time of the agreement.
  • Permanent Partial Disability: In the case of partial disability, the policyholder will be given some percentage or 100% of the sum insured. Partial disability means that one or more organs of the patient do not function properly or the ability to work is reduced. If there is no cure for the partial disability then it is considered a permanent disability.
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There is always a risk of accidents due to excessive movement on the roads. No matter how much care you take in this run-of-the-mill life, everyone is bound to be a mistake somewhere. In such situations, personal accident insurance can be very beneficial, for you and your family members. Some life insurance policies also cover personal accident insurance as a rider, in case you’d like to combine them.

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