What Is A Personal Accident Insurance Policy?

Know about personal accident insurance policy and how it is helpful in a medical emergency.
What Is A Personal Accident Insurance Policy?
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 policy.

What are the advantages of personal accident insurance policy?

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.

Read more: Mediclaim vs health insurance

What does personal accident insurance policy cover?

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.

Read more: Health insurance features and benefits

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.

Frequently asked questions

What is a personal accident policy?

A personal accident policy is an insurance policy designed to provide coverage in the event of an accident. This policy covers accidental death, total permanent disability, and partial permanent disability.

What is the premium for a personal accident policy?

The premium for a personal accident policy depends on the insurance company, the sum insured, and the coverage opted for. The premium can vary from a few hundred rupees to several thousand rupees.

How do I make a claim under a personal accident policy?

To make a claim, inform the insurance company immediately after the accident. Submit the necessary documents such as the police report, medical report, and hospital bills. The insurance company will process the claim and provide the insured amount accordingly.


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