All about Personal Accident Insurance Plan

Accidents may occur to anyone and you cannot stop them from happening. It is thus better to get a safeguard against personal accidents, so your family doesn’t have to suffer in case of an accidental mishap.

Personal Accident (PA) Insurance provides cover to the insured against death or disability arising from an accident. This policy provides monetary compensation, in case of accidental death and temporary or permanent partial/total disability sustained. It also covers the accidental medical expenses incurred in case of hospitalization due to accidental injuries. A personal accident insurance policy thus provides comprehensive coverage for you & your family against accidental mishaps.

Why Buying Personal Accident Insurance is Important?

Following are the key aspects that make buying a personal accident cover an imperative move:

Upsurge in Road Accidents

Indian roads account for the majority of fatalities, as the number of deaths due to road accidents is rising rapidly. As per a report from the National Crime Records Bureau, road accidents accounted for 43% of all accidental deaths in 2015. There has been a sudden rise in road accidents in the year 2015 and the number of fatalities and road crashes have been reported over 5 Lacs. The year 2016 has witnessed a steep rise in the number of road accidents. As per recent estimates, on average 400 people died per day in road accidents last year and about 77.1% of accidents took place only due to drivers’ mistakes.

Considering these statistics, getting coverage against accidents has become a necessity. Having personal accident insurance provides compensation against accidental sufferings.

Accidental Disability

As per rising statistics of road accidents, chances are higher for disability arising from the accident. Moreover, accidents are one of the major causes of physical disabilities.

In case, you are the only bread-earning member of the family and you become accidentally disabled up to an extent that you lost your earning capacity, it becomes really hard for you to manage the family’s expenses. Having personal accident insurance will give you a helping hand. This policy provides compensation, in case of temporary or permanent partial/total disability arising from an accident.

Loss of Life

You never know the extent of severity an accident may bring on you. As per government estimates, over 1.4 Lacs people died due to road accidents in the year 2015. Accidental death makes an adverse impact on your family both emotionally and financially. Personal accident insurance will provide financial assistance during this tough time and compensate the family in the event of your accidental death.

Hospitalization Expenses

Accidents may lead to serious injuries that require immediate medical attention and it will put a financial burden directly on your pocket. A personal accident plan provides cover against expenses incurred on hospitalization due to accidental bodily injuries.

Worldwide Coverage

Typically, personal accident insurance plans offer worldwide coverage for the insured person/s against accidental mishaps. In case you are outside India, a personal accident plan will cover the claims for unforeseen accidental occurrences. It brings ease, while you are on a trip abroad.

What is covered under Personal Accident Insurance Plans?

Personal Accident Insurance Plans offer a set of benefits as discussed hereunder.

Accidental Death

In case of your unfortunate demise due to an accident, the insurer will pay an amount equal to 100% of the sum assured to your nominee/beneficiary. You can avail of accidental death cover upon opting for PA Plans offering accidental death cover.

• ICICI Lombard’s Personal Protect offers an amount equal to the Sum Insured on accidental death.
• With the Religare Secure plan, in the event of accidental death, an amount up to the sum insured is payable.
• Future Generali’s Accident Suraksha offers Accidental death cover available up to 100% of the Sum Insured.

Permanent Total Disability

It refers to a condition when an accidental bodily injury results to complete disablement in a manner that you lose your earning capacity. Under this condition, the insurer pays the entire sum assured (as applicable). Most of the insurers provide cover, in case the disablement occurs within 12 months from the date of the accident.

• Personal Accident Insurance Policy from HDFC ERGO offers coverage towards Accidental Permanent total disablement up to 100% of Sum Insured chosen.
• Individual Personal Accident Insurance Policy from SBI General provides permanent total disability cover up to 100% of Sum Insured.
• Accident Guard Policy from Tata AIG provides cover for Permanent Total Disability, when occurs within 180 days from the date of injury is covered up to 100% of Sum Insured.
• Under the Personal Guard plan from Bajaj Allianz, Permanent total disability is covered up to 125% of the Sum Insured opted.

Permanent Partial Disability

It is a type of disability that is caused due to accidental bodily injury, in which you are unable to work at full physical capacity. The insurer provides cover towards Permanent Partial Disability and it pays a percentage of the sum assured as a lump sum or periodic payments, as specified under the plan chosen.

• SBI General’s Individual Personal Accident Insurance Policy pays 1% to 50% of Sum Insured or as assessed by the doctor.
• Tata AIG’s Accident Guard Policy offers 1% to 75% of Sum Insured, depending on the disability sustained.
• Bajaj Allianz’s Personal Guard Plan pays 2% to 75% of Sum Insured, depending on the disablement.
• Bharti AXA’s SmartIndividual Personal Accident Insurance Policy pays 3% to 75% of Sum Insured, depending on the disability.

Note: The benefits payable may vary, depending on the type of disability sustained and as specified under the policy chosen.

Temporary Total Disability

This physical disability refers to a situation when you become disabled and cannot work for a period of time (specified months or weeks). The insurer provides cover for Temporary total disability and pays a part of the sum assured for a specified time.

• SBI General’s Individual Personal Accident Insurance Policy pays 1% of Sum Insured or Rs 10,000 whichever is less. This benefit is payable for a maximum of 104 weeks.
• Bharti AXA’s SmartIndividual Personal Accident Insurance Policy pays 1% of Accidental Death SI per week, to a maximum of Rs 10,000 and it is payable for 104 weeks.
• HDFC ERGO Health Personal Accident Premium Plan pays up to 1% of the sum insured each week and is payable for a maximum of 100 weeks from the date of the accident. It is paid up to a maximum of Rs 15 Lacs. In case, the insured person is disabled from some days less than a week, a proportionate part of the benefit is then payable.

Hospitalization Expenses

A PA plan covers you against expenses incurred in case of hospitalization arising due to an accident. It covers medical expenses, room rent, doctor’s visits, etc. as specified under the policy chosen.

• Under Personal Guard Policy from Bajaj Allianz, medical expenses are reimbursed up to actual bills, or 40% of the eligible claim amount, whichever is less.
• SmartIndividual Personal Accident Insurance Policy from Bharti AXA offers cover for accidental medical expenses up to 20% of Accidental Death Sum Insured.
• Secure from Religare Health Insurance offers cover for hospitalization expenses up to Rs 1 Lac.

Repatriation of Mortal Remains

A personal accident plan provides cover for the Repatriation of Mortal Remains, which includes the cost incurred towards the transportation of mortal remains from the place of accident/hospital to the residence/hospital/cremation ground.

• Chola Accident Protection from Cholamandalam offers coverage up to 3% of Accidental Death Sum Insured or Rs 6,000 as a lump sum, whichever is less.
• IFFCO Tokio’s Individual Accident Insurance Policy offers coverage towards the carriage of a dead body up to 2% of Sum Insured or Rs 2,500 whichever is lower.
• Personal Accident Premium Plan from HDFC ERGO Health provides cover towards the transportation of mortal remains up to 2% of the Accidental Death Sum Insured, to a maximum of Rs 10,000.

Note: Plans mentioned above are not an exhaustive list. You may refer to another plan as well, to get the coverage you are looking for, and also don’t forget to read the policy benefits prior to buying a plan.

Additional Benefits under Personal Accident (PA) Insurance Plan:

Personal Accident (PA) Insurance Plan provides the option to attach riders that ensures flexibility to customize the plan at the time of buying. The riders can opt upon payment of additional rider premium and the availability of these riders may differ depending on the plan chosen. These additional benefits may be available as in-built or add-on benefits with PA plans, depending on the terms specified.

Hospital Daily Cash

It is a fixed benefit payable on a daily basis for each day of hospitalization caused due to an accident. It helps you to take care of additional expenses not covered under your personal accident insurance policy.

• ICICI Lombard’s Personal Protect offers an Accidental hospital daily allowance payable up to Rs 2,000 per day. It is payable for a maximum of 30 days.
• Niva Bupa’s Health Assurance personal accident plan pays Daily Hospital cash ranging from Rs 1,000 to 4,000 is payable, upon choosing this additional cover.
• Star Health’s Accident Care Individual Insurance Policy offers the Hospital daily cash of Rs 1,000 for each completed 24 hours of hospitalization. This benefit is payable for 15 days per occurrence and 60 days during a policy period.

Broken Bones

With Broken Bones add-on cover, you can get cover against fractures or bone damage caused by an unfortunate accident. Insurers pay a fixed compensation, as per the policy chosen.

• ManipalCigna Lifestyle Protection- Accident Care offers a lump sum amount towards broken bones are payable in a range of 3% to 100% of Sum Insured, depending on the severity of breakage of bones as specified under the policy.
• Global Personal Guard Policy from Bajaj Allianz offers Fracture Care which provides cover as 2% to 100% of Sum Insured, depending on the type of fracture resulting from an accident.

Child Education Benefit

In case of accidental death or disability of the insured, the insurer offers a fixed amount or a percentage of the sum insured as an educational benefit for the kids.

• Global Personal Guard Policy from Bajaj Allianz offers Children education benefits, in case of acceptance of the claim under Accidental Death or Permanent Total Disability. A one-time payment of the sum insured towards the cost of education of your dependent children is payable.
• Accident Suraksha from Future Generali offers Child Education Benefit. This plan makes a payment towards the educational support of the deceased person’s Dependent Child as the sum insured mentioned against this benefit, as stated in the Schedule.

Ambulance Allowance

Ambulance expenses incurred for transferring the insured to a hospital, from one hospital to another hospital, or transferring him/her from the hospital to the place of residence.

• Individual Personal Accident Insurance Policy from SBI General covers Ambulance Charges as 10% of accidental death sum insured, up to a maximum of Rs 1 lac during a policy period for the expenses incurred towards availing the ambulance service. It also provides Air Ambulance cover.
• Global Personal Guard Policy from Bajaj Allianz offers Ambulance Allowance when the Insured has been transferred to the nearest hospital from the spot of Accident by an ambulance or transferring from one hospital to another hospital with higher medical facilities. It also provides Air Ambulance cover.

Conclusion:

Personal Accident Insurance Policy is an economical way to avail a safety net against any kind of mishap pertaining to an unforeseen accident. It safeguards you from out of the pocket expenses to deal with and combat the expenses related to accidental consequences. Also, the premium is quite affordable as far as benefits are concerned. Various additional benefits could be opted to make the plan tailor-made as per your requirement. It is important to read the terms & conditions and then buy a plan that ensures comprehensive cover against all sorts of accidental mishaps.