What Is Personal Accident Insurance? Meaning, Types, Benefits And How To Buy

What Is Personal Accident Insurance? Learn all you need to know in this article.

Experiencing accidents can be profoundly traumatic, affecting not only the directly involved individual but also their close ones.

The potential outcomes include death, severe physical injuries, or permanent disabilities.

This can plunge victims into a state of shock and emotional distress.

To address these dire consequences, insurance companies provide a dedicated insurance policy known as “personal accidental insurance.”

What is personal accident insurance
What is personal accident insurance: Photo(Lead India)

This specialized coverage aims to provide financial assistance to you.

And your loved ones in the unfortunate event of accidents, with the goal of alleviating the economic impact of such incidents.

What Is Personal Accident Insurance?

Personal accident insurance is a type of insurance policy designed to offer protection against death, permanent total or partial disability resulting from any accident.

In the event of accidental death or permanent disability, the insurance company compensates the insured or their family up to the sum assured coverage.

For partial accidental disability, the insured receives a portion of the sum assured, contingent upon the severity of the disability.

It’s important to note that personal accident insurance is renewable in cases where the accident results in partial or temporary accidental disability.

These policies extend beyond major incidents to cover minor injuries like fractures and dislocations.

They also provide benefits such as coverage for ambulance costs, hospital expenses, child’s education cost, among others.

How Does Personal Accident Insurance Work?

Distinct from health insurance, which covers immediate treatment post-accident, personal accident insurance specifically addresses the financial burden resulting from accidents.

Its scope is broader, encompassing accidental death and disability, along with additional services not covered by health insurance.

A significant advantage of personal accident insurance is the immediate and cash disbursement of payouts, providing immediate relief post-accident.

Additionally, there is no waiting period, ensuring prompt compensation.

Also Read: Sentinel Insurance Company Ltd Connecticut(CT): Phone Number, Workers Compensation, Rating, Address

Who Should Opt for Accidental Insurance?

Accidents can happen despite precautions, making personal accident insurance essential for everyone, regardless of age, occupation, or health conditions.

It is advisable to purchase this plan early in one’s earning years, with experts recommending a maximum coverage of ideally 10 times annual income.

Mandatory for those who are the sole breadwinners of their families.

Personal accident insurance is also suitable for individuals engaged in high-risk occupations such as builders, contractors, and engineers overseeing superintending functions.

People involved in highway driving and cash-carrying employees facing elevated risks should also consider obtaining personal accident insurance.

Also Read: How Suicide Affect Life Insurance Payouts: What You Need to Know

What Personal Accident Insurance Covers:

  • Coverage against the accidental death of the policyholder.
  • Coverage for partial or permanent disability arising due to an accident.
  • Coverage for hospitalization expenses and other medications.
  • Coverage for child’s education expenses.
  • Coverage for injuries like burns, fractures related to accidents.
  • Daily cash allowance.

Types of Personal Accident Insurance Policies:

  1. Individual Accident Insurance:
    • Covers the main policyholder against financial losses due to an accident.
    • Provides coverage for accidental death or any kind of permanent or temporary disability arising from an accident.
  2. Group Accident Insurance:
    • Involves a group of individuals, such as employees, receiving coverage for accident insurance.
    • Employers often provide this insurance to employees at lower premium costs, but benefits may be limited compared to individual accident insurance.

Benefits of Buying Personal Accident Insurance:

  • Provides financial security to your family in your absence due to accidental death.
  • Assists financially in case of permanent disability.
  • No need for prerequisite medical tests before purchasing a policy.
  • Covers all hospitalization expenses if the insured is hospitalized due to an accident.
  • Offers coverage for your children’s education in the event of accidental death or permanent total disability.
  • Allows customization with various sum assured options.
  • Provides a fixed amount for each day spent on hospitalization due to an accident.
  • Ensures faster claim disbursals upon informing the insurer within a stipulated time frame.
  • Some companies cover the cost of transporting the mortal remains of the policyholder.
  • An inexpensive option depending on the state and coverage needed.

How Personal Accident Insurance Premium Is Calculated:

Users can easily calculate the premium online by:

  • Logging onto the insurance company’s website.
  • Using the premium calculator and providing details such as sum assured coverage, age, profession, and policy duration.
  • The calculator evaluates the details and displays the potential premium amount.

Exclusions in Accidental Insurance:

  • Natural death.
  • Pre-existing or birth-related disabilities.
  • Childbirth or pregnancy.
  • Self-imposed injuries.
  • Injuries related to war, riots, or adventure sports activities.
  • Mental disorders.

How to Make a Claim:

Cashless Claim Settlement Process:

  1. Notify the company within 48 hours of emergency hospitalization.
  2. Present the insurance cashless card and ID proof at the hospital’s desk.
  3. Fill and submit the claim form to the hospital.
  4. The insurer reviews the form and documents, clearing the claim process immediately.

Reimbursement Claim Settlement Process:

  1. Notify the insurer within 48 hours of hospital admission.
  2. Collect and submit required documents after 15 days of discharge.
  3. The insurer approves or rejects the claim after document review.
  4. If approved, the reimbursement amount is sent to the registered bank account, with notification via email.

List of Documents to Be Submitted in Case of Accidental Death

  • Death certificate.
  • Original policy documents.
  • ID proof.
  • Age proof.
  • Discharge summary.
  • Medical certificate.
  • Police First Information Report (FIR), if needed.
  • Hospital records or certificate.
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