Accidents can be quite disturbing for families, both emotionally and financially. Road motor accidents have increased over last decade, could be due to our hectic time-crunch lives, fast vehicles, speed thrills or can simply be an unfortunate event even after all precautions and propriety behavior.
Personal Accident insurance or PA insurance is an insurance policy which provides compensation in the event of injuries, disability or death caused solely by accidents. It covers risks of accidental death and disability partial or whole. Permanent or temporary.
Most life insurance policies provide accidents as a rider, but these are generally restricted to permanent disability or a basic cover for accidental death. Further, the cover offered is linked to the base sum assured. Thus, it cannot be exceeded beyond a certain level. It is advisable to buy a personal accident policy. This policy provides complete protection against accidental risks and thus, offers financial security in the event of death or disability. The plan works well when you buy it as an individual policy or not as a rider attached with a life insurance policy.
Types of Personal Accident Insurance.
• Individual Personal accident cover
• Group personal accident cover
Individual Personal Accident cover – Cover for individual personal in case of a mishap, offers compensation for accidental disability or demise.
Group Personal Accident Cover. Group personal accident insurance offers complete coverage in the event of death or disablement of the policyholder due to accidents. It’s a cover offered by employers to their employees. It’s given as an incentive to employees. As it’s taken for large group of employees, so discount is given it, costs less. It may not be as comprehensive as individual cover.
Coverage under Personal Accidental Insurance
• Personal accident Insurance covers below risks.
• Accidental death
• Accidental disability
• Accidental dismemberment
• Terrorism act
Benefits of Personal Accidental Insurance
Accidental Insurance Policy protects policy holder and his family from economic crisis due to accidents, such as loss of income, medical legal expenses. Funeral expenses in case of death. Below are benefits that this policy entails.
• Financial security to family
• Worldwide coverage
• Low premium, high coverage
• Can be taken for individual or family
• No medical tests or documentation required to take policy
• Medical, legal & funeral expenses paid
• Daily payment during hospitalization
• Cover mishaps while traveling in public transport
• Accidental circumstances are only covered. Natural death is not covered.
• Pre-existing disability / injury
• Childbirth or pregnancy
• Suicide or self-injury
• Injury due to intoxication
• Involved in Criminal activities such as war or riots
• Suffering from mental disorder
• Participating in military, naval, army adventurous or sports activities