What is a personal accident insurance policy?

What is a personal accident insurance policy?

Know about personal accident insurance policy and how it is helpful in a medical emergency.

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3 mins
21 Mar 2023

Accidents are sudden events that can affect you emotionally and psychologically. And, at that moment, stressing over finances to get the appropriate treatment adds to the trauma. In such times, a personal accident insurance policy helps ease the treatment process significantly.
Read on to know about the benefits and coverages offered under personal accident insurance.

Personal accident insurance policy: Advantages and coverage

A personal accident insurance policy gives you coverage against medical treatment, accidental death, or disability. It is part of a health insurance policy and provides coverage for all medical-related expenses caused due to an accident. It covers hospitalisation, treatment, surgery (if required) and associated medical costs. Furthermore, it covers expenses towards permanent or partial disabilities suffered because of the accident. In case of accidental death, the nominee gets compensation up to the sum insured.
Most health and motor insurance policies offer personal accident cover. However, you can separately buy the personal accident insurance policy to get complete coverage.
The Insurance Regulatory and Development Authority of India (IRDAI) has a standardised minimum limit of personal accident cover up to Rs. 15 lakh. It also mandates insurers to offer this cover on their motor insurance policies.

Why do you need a personal accident insurance policy?

Having a strong financial backup is important during emergencies. The personal accident insurance policy does the exact job. It keeps you financially prepared for any emergency.
It simply ensures that your loved ones focus on the best treatment for you and your recovery than worry about the finances. Let the finances be taken care by your insurer. You can avail of quality healthcare services without worrying about the funds.
Also, medical expenses can dent your savings. Coming back to normalcy after an accident can take some time. If you have personal accident insurance, your treatment may not affect your savings. So, you can have some financial stability during your recovery days.

What is the coverage under personal accident insurance policy?

Below are some of the common coverages offered under personal accident insurance policies..

Hospitalisation expenses:

 All the medical expenses incurred during the hospitalisation period including your room rent, treatment, surgery, diagnosis, etc.

Death coverage:

Upon demise due to the accident of the policyholder, the insurer pays the sum insured in the policy to the nominee.

Disability coverage:

Treatment and support items expenses required in case of permanent or partial disability. For example, you can get coverage for therapies, prosthetics, walkers, or any other equipment required to help you lead your regular life.

Loss of income:

This helps you to avail of an amount as compensation in case you lose your income source due to permanent disability. It will help you to get financial stability and enable you to restart by enrolling in retraining programmes to get a job. You also continue to pay your EMIs if any with the help of the compensation money.

Child’s education coverage:

In case of loss of income or accidental death, this cover will give you a fixed amount against your child’s education. So, they can continue their education without worrying about their fees.

Funeral expenses cover:

The nominee will receive an amount as compensation to cover the funeral expenses.

Does age determine the premium of the personal accident insurance policy?

Usually, age plays an important factor in case of determining the premiums for health insurance policies. As, with age, the chances of falling ill and claiming the policy amount is high. However, the proposer’s age is not a considerable factor when calculating the premiums of personal accident insurance policies.

What are the benefits of taking personal accident insurance policy?

The primary benefit of a personal accident insurance policy is peace of mind. You can stay financially secure and prepared for any emergency. This policy ensures that there is no financial burden on you or your loved ones during this critical time.
The other benefits of this policy are:
● You or your family member can avail of the 24x7 assistance offered by the insurance company. Get answers to any queries while you are admitted to the hospital.
● These policies have easy and simple claim processes.
● You get worldwide coverage. However, this depends on the policy you have chosen.

To sum it up, having a personal accident insurance policy makes yours and your loved one’s life easier in times of emergency. You can easily compare and buy a personal accident insurance policy online.

Disclaimer

Insurance is the subject matter of solicitation. 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, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and ManipalCigna 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. Visitors are hereby informed that their information submitted on the website may 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, 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 value-added service provider or Assistance company.

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