Why we need Personal accident insurance policy – Advantages and benefits

Life insurance policy will pay only when the policy holder dies or on maturity. Health insurance will pay policy holder’s hospital bill in case of hospitalization. Both these insurance policies will not give you financial benefits in case of accidental death or accident which leads to permanent or partial disability.

If any accident leads to a disability or affects earning capacity then the personal accident policy can help you to get out of the financial instability. But, in many cases we have seen that Indians are not including it to their insurance portfolio.

In this article we have tried to answer the most basic question that is generally asked “why we need personal accident insurance policy and how it can benefit me”. We urge you to give your feedback and suggestion on this issue.

Why we need Personal accident insurance policy – Advantages and benefits

What is personal accident policy

Personal accident policy compensates financial loss of the policy holder in case of a accident. Accident does not mean that road accident. Slipping on the stairs, injuries during sports, disability due to firecrackers and all other types of accidents are covered. You can also extend personal accident policy to include your medical expenses as a result of accident.

Many life insurance companies also provide personal accident insurance policy as add on. While it’s a good idea to have these kinds of policy, but most of these policies are not comprehensive to give you full protection. Like in many cases these types of policy will cover permanent disability not partial one.

We request you to take a standalone personal accident policy and include all those benefits that you are required to have in it. You can also cover various losses like income loss and hospitalization.

Premium amount for personal accident policy is also very less compare to other types of policies. For a 20 lakh rupees lifelong coverage you are required to pay 1999 rupees in case of Bharati AXA and 3133 rupees in case of Max Buppa. This premium amount will differ based on add on that you included or excluded while selecting a policy.

Compare to private insurance companies, PSU insurance providers can offer you better package with less premium. In below table we have tried to cover all the benefits that you can get by taking a standalone personal accident policy.

Accidental Death In case of accidental death, the nominee of the policy holder will get 100% of the sum assured. In some cases, insurance companies cover death within 90 days from the accident date. So please look into this clause while taking your personal accident policy
Permanent disability due to accident If due to accident the policy holder is permanently disabled then as per the personal accident policy 100% of the sum assured will be paid to him or her. Some insurance companies are also offering 125% of the sum assured.
Permanent partial disability due to accident If due to accident the policy holder is partially disabled for lifelong then a fixed percentage will be paid on a periodic basis.
Temporary disablement When policy holder is temporarily disabled due to accident then insurance companies will pay a certain percentage on the sum assured as compensation for such disablement.

The best part of personal accident insurance policy is that the premium amount does not depend on your age. But, it will differ based on your type of employment or nature of work. Like a factory worker will have to pay more compare to an office worker. While taking personal accident policies with any insurance provider please make sure that all your requirements are covered.

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