Personal accident insurance

Personal accident insurance

Know why personal accident cover is important in today’s times.

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3 mins
10-May-2023

Accidents can significantly impact your savings if you do not have financial security. A personal accident insurance policy saves you from the unexpected financial burden. The policy enables you to get the best treatment without worrying about funds availability. Having a personal accident policy also ensures that your savings remain intact.

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 personal 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.

Therefore, with an increasing number of vehicles and accident-related damages, having personal accident insurance becomes imperative.

Features of personal accident insurance policy

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

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

What are the benefits of a 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.

What are the types of personal accident insurance policies?

There are two types of 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 and getting back to your regular life without worrying about the financial burden.

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 gives coverage against expenses incurred during medical emergencies.

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


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, which 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, including 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


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

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 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

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.

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Disclaimer

Insurance is the subject matter of solicitation. *T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

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