Buying Personal Accident Insurance is Advisable

With the growth of technology and transportation, the pace of life has speeded up. While living such fast-paced life, you are constantly exposed to the risk of unfortunate events such as accidents. Accidents pose a threat to your physical well-being.

Accidents can cause death, or may result in permanent disability such as loss of limbs, mobility, or severe injury. Though a life insurance or a health insurance policy is known to offer sufficient amount of financial reimbursement after any such event, the compensation received is often limited. At such times, it is recommended to avail an extra cover through personal accident insurance.

What is Personal Accident Insurance?

A personal accident insurance policy is a contract that offers financial reimbursement to the insured person after any unfortunate event such as accident, which causes hospitalization, death, or temporary/permanent disability. It is an add-on policy that offers extra cover to life insurance as well as health insurance sum insured amount.

What will be covered under this Policy?

This policy in general offers four basic covers as follows:

Ø Death Cover: the insured person’s nominees will be provided the availed sum insured amount in case the insured passes away during an accident or any other perilous condition.

Ø Permanent Total Disability Cover: In case the insured person sustains severe injuries that causes permanent disability, then the insurance company will reimburse the entire sum insured. Permanent disability includes loss of limbs, blindness, arms, etc.

Ø Permanent Partial Disability: Suppose the insured person loses one of the limbs or eyes, then at least 50% of the total sum insured is paid.

Ø Temporary Partial Disability: If the insured person sustains heavy injury causing temporary immobilization or disability, then the insurance company will pay substantial amount of sum insured.

Who should buy?

Any person, his spouse, children, and parents can avail this insurance. However, children between 5 to 18 years are not eligible for this policy.

How much Cover is required?

Ideally, you should avail sum insured amount that is 10 times your annual income. This way, any loss incurred can be compensated.