10 Reasons To Buy Personal Accident Insurance

Posted by kiran singh on January 16th, 2019

Nobody is ever prepared for an accident or can predict it. It becomes an unfortunate reality for a lot of people. A person involved in an accident has to go through grave physical and mental pain. The first priority of any accident victim is to be able to receive first-class medical care. As we all know, medical care is getting expensive by the day and having personal accident insurance can ensure you get the best of medical attention, if you are involved in an accident. In this read, we will explore the 10 reasons to buy personal accident insurance.

Lump sum accidental death benefit

The main reason for buying accidental death benefit is that it pays the nominee or policyholder lump sum amount, in case of death or 100 percent disability. The money from the death benefit acts as a financial pillar to deal with the crises and get the required aid for the situation.

Permanent disability

If a person suffers from permanent total disability from the consequences of an accident, then he/she will not be able to work or lead a normal life.  Total disability will mean the loss of eyesight in both the eyes, loss of limbs etc. Medical treatment and rehabilitation require a lot of money and personal accident insurance gives the much needed financial assistance to tackle those situations.

Permanent partial disability

An accident may also result in partial disability like loss of sight in one eye, knee injury or nerve damage.  In such scenarios, the accidental injuries can be permanent and irrevocable, which are covered under the accidental insurance policy. If the policyholder loses one eye or limb, the accidental policy will pay out the benefits as per the sub-limits mentioned in the terms and conditions of the policy.

Add on to life insurance, motor insurance or health insurance

Motor insurance, life insurance or health insurance policies have a special feature to add accidental coverage in the respective policies. This important add-on coverage helps to enhance and make the insurance portfolio stronger and better prepared in case of mishaps. Since many insurance policies don’t have accidental coverage, the accidental add-on coverage fills the gap in the insurance coverage.

Low-cost Insurance

Accidental insurance policies are easy on the pocket. For example – an accidental insurance policy of a 30-year-old male will cost an annual premium of INR 1000 per month.  Due to the low cost of insurance, many bank accounts give free accidental insurance as a benefit of banking with them.

Additional expenses coverage

Additional expenses like OPD for fractures, special accidental medical expenses coverage are available in personal accident policy. It also offers long life renewability. The policy makes for a perfect risk mitigation plan for accidental injuries care.

Financial Security for the Family Security

An accident can be traumatizing, not only for the accident victim, but for the whole family. Accidental insurance helps the family to avert any financial crises. If the accident happens to the breadwinner of the family, it can create havoc and the whole family will find it hard to survive if there is no accidental insurance in place. Also, it can deny good treatment to the victim which may lead to death or life-changing bad experience.

Child education aid in personal accident insurance

Some insurance companies have enhanced their personal accident policy by adding innovative features to attract customers. One such feature is that if the policyholder dies, then the policy will also pay-out expenses for a child’s education.

Simple claim settlement process

The claim settlement process of the personal accident policy is very simple. The insured just needs to provide the required details which may differ from insurer to insurer. The basic details required are policy details, personal details of the policyholder, time and date of the accident. Once the claim form is filled and submitted, the insurer will start the claim process and pay-out the compensation as per the terms and conditions mentioned in the policy.

No medical test

Personal accident insurance is a simple insurance product and it requires very minimal information and paperwork. There is no requirement of medical test for availing personal accident insurance. The policy can be purchased online with a few easy steps and the payment also can be done online through a secure payment gateway. The policy is issued online straightaway and you can secure your life against any risk of an accident.

Key Factors to Consider Before Buying a Personal Accident Insurance

To perform a comparison among the various personal accident insurance, there are some key factors that you should consider. These are:

Coverage

The sum insured that health insurance plans offer is an important element to consider. Sum insured is the maximum amount of medical expenses that you can claim in case of hospitalisation. This can range anywhere from INR 50,000 to INR 1 Crore. However, this amount is dependent on the lifestyle of the insured.

Cashless Claims

When an insurance company provides coverage across a wide network of hospitals, processing a cashless claim becomes easy. Being eligible for a cashless facility means that the insurance company directly pays the bill amount to the hospital. At the time of discharge, you will only have to pay the difference between the bill and the claim amounts.

Premium

Premium is the cost you incur towards maintaining your insurance policy. However, it is vital to note that while this is an important factor, a low premium does not always lead to cost savings in the long run. Viewing premium along with coverage is a good way to compare plans.

Inclusions and Exclusions

Every insurance policy has a set of inclusions and exclusions. Inclusions are the accidental injuries and circumstances that are monetarily covered by your personal accident insurance policy. On the other hand, exclusions contain a list of circumstances that the policy will not cover. Some common examples of exclusions are an accident due to involvement in criminal activity, participation in adventures sports etc. When choosing an insurance policy, make sure it has minimal exclusions so that you can get the most benefit.

In a nutshell

As we can see from the above article, personal accident insurance offers various benefits for its premium. In a country like India where accidents are common, it is almost necessary to include personal accident insurance in your financial portfolio.