In India, over 3.5 lakh people are seriously injured and disabled every year due to road accidents. About 1.5 lakh people are killed annually, 70% of which are from the active age group of 18 to 45 years. Also, numerous freak accidents such as landslides, electrocutions, and occupational deaths cause grief to families every day.
This is why, at least the active population of India, if not everyone, should have sufficient personal accident cover. Here are some reasons why you should consider buying personal accident insurance.
- Death cover
The primary reason for buying personal accident insurance is that it protects the survivor in the event of the accidental death of the policyholder. Class I heirs—the spouse, children and mother—can be the nominee who receives the accidental death sum assured. In case of the death of the breadwinner, the surviving family can gain sufficient financial protection.
- Disability cover
A personal accident survivor may become incapable of working due to injuries sustained. This includes total permanent disabilities like loss of eyesight or amputation of limbs. For the earning member of the family, a total disability can completely reverse the financial situation. In personal accident cover, total disability renders 100% payout of the sum assured.
- Partial disability cover
Partial disability, too, can reduce the earning capacity of a person. It can be nerve damage, sensory losses, partial loss of vision etc. If such a disability is permanent and irreversible, it will qualify for a sum-assured payout. Such payout will be as per the sub-limit specified for the permanent partial disability.
- Medical coverage
A serious personal accident inevitably leads to hospitalisation. Personal accident insurance policies earmark a sum assured for such hospital treatments. It is generally in the form of a lump sum cash benefit that is paid for the hospital expenses on daily basis.
- Protects family
Personal accident death, disability and hospitalisation can stretch the finances of a family severely. From hospital bills to household expenses, personal accident consequences can be addressed through an adequate policy. A personal accident policy also helps with future financial commitments like children’s education.
- Settles liabilities
In case of the accidental death of the policyholder, unsettled liabilities are settled using the sum assured. The surviving family can settle the debt out of the claim payout and move on with their life debt-free.
- Supports dependent parents
The personal accident of an adult and active child can put the parents in emotional and financial misery. An accidental death or disability payout can be timely financial support for the aggrieved parents. Thus, a personal accident policy can also ensure elderly care benefits.
- Improved vehicle coverage
Personal accident coverage can be purchased as an add-on to your motor vehicle insurance. A comprehensive motor insurance policy with a personal accident add-on completes your on-road insurance needs.
Similarly, it can also be bought as a group or individual health insurance rider. This will extend your medical policy coverage to include all medical and accidental hospitalisation and treatment needs.
- Lifetime renewability and other benefits
There may be age and entry limits in many personal accident policies. However, you must choose policies that offer lifetime renewability and other additional benefits. For instance, coverage of OPD expenses in case of fractures or ambulance coverage can prove useful in the face of an emergency.
- Easy claim processing
Claim processing is comparatively simpler for personal accident insurance. Unlike a medical policy, personal accident insurance demands limited document verification. Thus, on the submission of the right documents, a personal accident claim is disbursed promptly.
- Simple purchase process
Personal accident insurance can be bought without any medical checks or hefty paperwork. The information required is minimal and the application is usually processed quickly. All leading insurers allow you to buy a personal accident policy online from the comfort of your home.
- Affordable
For all the benefits that it offers, a personal accident insurance policy is quite affordable. For the insurance company, a personal accident is a lower insurance risk compared to individual health insurance. A young person can buy a personal accident policy with a sum assured of several lakhs by paying barely a thousand rupees per year.
Thus, a personal accident policy is an affordable and beneficial way of covering accidental death, disability and hospitalisation risks at a minimal additional cost.
