Personal accident insurance

Read on to know the significance of a personal accident insurance policy. Check the coverage, inclusions, and exclusions.
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10-May-2023

The Personal Accident Insurance policy offers comprehensive financial security to policyholders, safeguarding them against unforeseen events like accidental death, bodily injuries due to accidents, and both partial and total disabilities, whether permanent or temporary. In the unfortunate event of the policyholder's accidental demise, the nominee is entitled to receive full compensation amounting to 100% from the insurer.

What is personal accident insurance?

Personal accident insurance policies provide complete financial coverage to policyholders. You get coverage for accidental death, bodily injuries, and physical disabilities (temporary and permanent). In case of the insured’s death, the nominee gets 100% compensation.

Statistics of road accidents in India

India recorded a total of 4,12,432 road accidents in 2021, as per the Ministry of Road Transport and Highways of India reports.

  • Out of these, approximately 37% suffered accidental death and 63% suffered injuries.
  • The report also states that the most affected age group is 18-45 years old.

Therefore, with an increasing number of vehicles and accident-related damages, having personal accident insurance becomes imperative. So, buying a health insurance online is highly recommended to ensure complete coverage against personal accidents.

Features of personal accident insurance policy

Here’s a quick look at the features of a personal accident insurance policy:

Features

Specifications

Premiums start at

Rs. 1,469*

Cashless network hospitals

10,000+

Medical coverage

Covered

Hospitalisation coverage

Covered

Tax benefits

Covered

Ambulance coverage

Covered

Accidental death

Covered

Child education support

Covered

Permanent and partial disability

Covered

 

  • Get coverage for medical expenses and hospitalisation charges
  • Nominee gets full compensation in case of accidental death
  • Policyholders can make cashless or reimbursement claims
  • Tax benefits available on the premiums paid
  • Get a children's education bonus along with a personal accident insurance
  • Get up to 125% compensation in case of permanent total disability

Benefits of personal accident insurance policy

The benefits of opting for a personal accident cover are as follows:

· Helps in savings

Provides financial coverage against treatment taken for injuries caused by an accident, helping you to keep your savings intact.

· Secures your family

Offers accidental death cover to ensure your family members stay financially secure.

· Covers medical expenses

Provides coverage for the medical bills for the treatment of an injury.

· Offers daily cash benefit

Provides a daily cash allowance of Rs. 1,000 up to 30 days during hospitalisation.

· Covers dependent children

Covers the education fees and medical expenses of dependent children. The insured’s dependent children (below 19 years old) get the compensation amount if the insured suffers permanent disability or death.

· Provides disability cover

Policyholders receive up to 125% of the policy sum insured in case of permanent disability.

· Cumulative bonus benefit

Get a cumulative bonus starting from 10% and up to 50% for every claim-free year.

· Quick claim settlement

Get your claims settled within seven working days after meeting all formalities.

Also read: Family Health Insurance

What are the types of personal accident insurance policies?

There are two types of personal accident insurance policies:

· Individual accident insurance

Also known as personal accident insurance, covers only one person. The insured gets coverage in case of death or disability caused due to an accident. Covers loss of limbs or sight or any permanent disabilities.

· Group accident insurance

Employers offer group accident insurance to their employees. This type of accident insurance covers a group of people like workers, members of an organisation, or employees. You get coverage for accidental death or disability.

Why do you need personal accident insurance?

Accidents can happen anytime, and the consequences can leave you with hefty medical bills, a loss of income due to disability, and even death. A personal accident insurance policy is a vital investment to ensure your family's financial stability in case of any emergency. Here’s why you need a personal accident insurance policy:

  • A personal accident policy gives financial assistance, covering all medical expenses and other miscellaneous expenses.
  • It covers accidental death, permanent disability, and temporary disablement caused by an accident.
  • With a personal accident insurance policy, you can focus on recovery. You can get back to your regular life without worrying about the financial burden.

Also, read about government health insurance scheme: Pradhan Mantri Suraksha Bima Yojana (PMSBY)

How much personal accidental insurance coverage is enough?

Determining the right amount of personal accident insurance coverage depends on individual needs, including income replacement, medical expenses, and lifestyle. Typically, it's recommended to have coverage that equals 5-10 times your annual income. This ensures financial stability for your dependents and covers any unforeseen expenses during recovery, allowing peace of mind and comprehensive protection.

Why choose personal accident insurance from Bajaj Finance?

Despite being careful and taking all the necessary precautions, accidents can happen at any time. Hence, personal accident coverage becomes essential for everyone. Bajaj Finance partners with leading insurers to offer a variety of health insurance plans with extensive coverage and affordable premiums. The following are the reasons to opt for a personal accident insurance policy from Bajaj Finance:

  • Family’s financial security
  • Wide range of coverage at affordable premiums
  • No documents or medical tests required
  • Simple and prompt claim process
  • Reliable plans for family and policyholder
  • Customisable plans

Difference between life, health, and personal accident insurance

Life, health, and personal accident insurance give financial security. Here’s a quick glance at the basic difference between life, health, and personal accident cover.

Life insurance

Health insurance

Personal accident insurance

Offers life cover up to the chosen tenure.

Offers coverage for medical expenses.

Offers coverage only for injuries or death caused due to an accident.

Get the sum insured on maturity. In case of the insured’s death, the nominee receives the sum insured.

Get coverage for hospitalisation, and pre- and post-hospitalisation expenses. Covers daycare procedures and domiciliary hospitalisation expenses.

Get coverage for treatment and hospitalisation for any accidental injuries. Covers permanent partial or total disability and temporary partial or total disability.

Beneficial for sole breadwinners in the family to plan their financial health.

Beneficial for all age groups, as it gives coverage against expenses incurred during medical emergencies.

Beneficial for all age groups to deal with the treatment costs incurred due to an accident.

 

Difference between personal accident insurance and term insurance

Personal accident insurance provides financial coverage for injuries, disability, or death resulting from accidents, ensuring protection against unexpected mishaps. In contrast, term insurance focuses on providing financial benefits to beneficiaries in case of the policyholder’s death during the policy term, regardless of the cause. For those specifically concerned about accident-related risks, accidental death insurance is tailored to cover fatalities directly caused by accidents, offering specialised support and peace of mind.fv

What are the advantages of a personal accident insurance policy?

A personal accident insurance policy provides an essential safety net to the family in case the insured gets injured or disabled by an accident. It is advisable to purchase this accident insurance to stay financially secure against the high medical treatment costs arising from an unexpected accident.

  • Accident insurance policy provides cover for accidental death. This can provide your family with a financial cushion in case of a mishap.
  • Personal accident policies cover medical expenses incurred as a result of an accident. This includes hospitalisation, treatment, and other related expenses.
  • You receive a sum insured in the policy for loss of income due to injury or disability resulting from an accident.
  • Personal accident (PA) insurance usually provides worldwide coverage, which means that even while travelling abroad, you get coverage for any injury in an accident.
  • You can easily buy personal accident insurance policy online and customise as per your needs and budget. The policy also offers an easy claim process.

Eligibility criteria to buy a personal accident insurance policy

Here are the eligibility criteria that you need to fulfil to purchase a personal accident insurance policy:

  • The minimum age for purchasing this policy is generally 18 years, while the maximum age varies depending on the insurer.
  • You should not have any pre-existing condition that is likely to cause accidents.
  • You should provide accurate information about your occupation and the nature of your work. This may also affect your premium.

Note: Read the terms and conditions of the insurer before choosing a policy.

Key inclusions and exclusions of personal accident insurance policy

Here’s a quick look at the key inclusions and exclusions of personal accident insurance policy.

What does personal accident insurance cover?

What personal accident insurance does not cover?

Accidental death of the policyholder

Terrorism and war-related injuries

Permanent or partial disability due to an accident

Suicide or self-injury

Medications and hospitalisation

Pre-existing disability or injury

Child education bonus (if opted for in the plan)

Injury caused by adventure sports activities

Funeral and legal expenses (if opted for in the plan)

Expenses for treatment of diseases or illnesses

Coverage for fractures, burns, etc.

Injuries under the influence of drugs or alcohol

Daily cash allowance

Childbirth or pregnancy

 

Also, read: Parents Health Insurance

How to raise claims for personal accident insurance?

Here are two ways in which you can raise claims for personal accident insurance.

Cashless claim process

You can get cashless treatments at partner network hospitals across India. Check the list of the network hospitals beforehand to know the nearest hospital locations. It will help you during an emergency. Follow these steps to get file this claim:

Step 1: Inform your insurer within 48 hours of hospitalisation.

Step 2: Share the policy details or the patient’s policy cashless card and valid ID proof at the hospital’s insurance desk.

Step 3: Fill up all details in the pre-authorisation form and submit it at the hospital.

Step 4: To expedite the procedure, fill up a request form on the official portal of the insurer and also inform your insurer about the same.

Step 5: Your insurance provider might take up to two hours to review the application and inform you accordingly via SMS and e-mail.

Step 6: You can even check the status of the claim online.

The insurer will process the claim as per the terms and conditions after the completion of all formalities.

Reimbursement claim process

Here are some of the steps to claim a personal accident insurance policy:

Step 1: You can claim for reimbursement if you choose to visit any hospital of your preference. Inform the insurance provider within two days in case of emergency admission and three days before planned hospitalisation.

Step 2: Submit all necessary documents within 15 days after discharge.

Step 3: The insurance provider will accept or reject the claim after reviewing all documents.

Step 4: Once approved, the insurer will transfer the amount to your registered bank account via NEFT.

Step 5: If your accidental insurance claim request gets rejected, you will receive a notification on your registered e-mail address and phone number.

Documents required to raise a claim for personal accident insurance

  • Original policy documents
  • Death certificate
  • Beneficiary’s ID proof
  • Age proof of the policyholder
  • Medical certificate
  • Discharge form
  • Police FIR (in case of unnatural death)
  • Hospital certificates/ records (in case of death due to illness)
  • Post-mortem report (in case of unnatural death)
  • Employer certificate and cremation certificate

Additional benefits of personal accident insurance policy

A personal accident insurance policy provides financial protection against accidental death or disability. In addition to this basic coverage, there are several additional benefits that can be availed under a personal accident insurance policy. Here are some of them:

  • Hospitalisation costs: Depending on the policy, personal accident insurance policy may cover hospitalisation costs for the policyholder and family members in case of an accident.
  • Ambulance expenses: Ambulance expenses incurred due to an accident can also be availed under a personal accident insurance policy.
  • Education grant: Some personal accident insurance policies provide education grants in case of a policyholder’s permanent disability or accidental death. This grant can be used for the education of the insured party’s children.
  • Loss of income: If the policyholder becomes disabled due to an accident and is unable to work, then the personal accident insurance policy may provide for a loss of income benefit.
  • Home renovation expenses: Personal accident insurance policy may also cover home renovation expenses of the policyholder in case of disability.
  • Adaptation costs: Adaptation costs for a home or vehicle may be covered under a personal accident insurance policy for policyholders with permanent disabilities.

What are the tax benefits under a personal accident policy?

A personal accident insurance policy not only provides financial protection against accidental death or disability but can also offer tax benefits. As per the Income Tax Act, premium payments for personal accident insurance policies are eligible for tax deductions under Section 80D.

The maximum limit for tax deduction is Rs. 25,000 for insurance premiums paid for self, spouse, and dependent children. If you are over the age of 60, this limit increases to Rs. 50,000. Furthermore, in case of disability or accidental death, the claim amount received under a personal accident insurance policy is tax-free under Section 10 (10D) of the Income Tax Act. By availing a personal accident insurance policy, you can not only secure your financial future but also enjoy tax benefits.

Frequently asked questions

What is the cost of an accident insurance policy?

The premium of an accident insurance policy depends on the insurer that you choose. Your age, occupation, and medical history decide the premium value of the accident insurance policy. It also depends on the coverage amount chosen.

What is adequate coverage under accidental insurance?

As per IRDAI, motor insurance companies must offer at least Rs. 15 lakh of personal accident cover. You should choose a personal accident insurance that offers coverage 10 times more than your annual income.

Is accident insurance beneficial?

Personal accident insurance covers you against the medical expenses incurred due to an accident. You get the required financial assistance in case of emergency. This ensures that you access quality healthcare services for the treatments without worrying about the funds. Personal accident insurance covers accidental death or any disability caused by accidental injuries.

Can I claim for multiple personal accident insurances?

Yes, you can make claims for multiple personal accident insurance policies. Having multiple personal accident insurances means you have extra financial protection for any emergency. You will get the coverage as per the terms and conditions of the policy.

Why should I buy personal accident insurance if my health insurance already covers accidents?

While your health insurance may cover accidents, it often only covers medical expenses related to the accident. Personal accident insurance, on the other hand, provides comprehensive coverage that can help you recover financially if you are injured or disabled in an accident. This can include benefits like reimbursement for lost income, coverage for emergency medical transportation, and lump-sum payments if you experience a permanent disability or die in an accident.

Can I cover my parents in personal accident policy?

Most insurance companies allow you to include your parents as beneficiaries in your personal accident insurance policy. This can provide financial protection for your parents in the event they are injured or disabled in an accident, allowing them to cover their medical expenses and lost income without draining their savings.

What is personal accident insurance?

Personal accident insurance offers financial protection against injuries, disability, or death resulting from accidents. It covers medical expenses, hospital bills, and provides compensation for lost income due to temporary or permanent disability. This insurance ensures that individuals and their families are financially supported during unexpected emergencies caused by accidents.

Why do you need personal accident cover?

Personal accident cover provides financial protection in case of injury or death due to accidents. It covers medical expenses, loss of income, and disability benefits, ensuring you and your family have financial support during unexpected, often devastating events.

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