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4 Benefits of Personal Accident Insurance

Benefits of Personal Accident Insurance

You can take all the possible precautions in your life, while you walk down the road, travel, play, drive just to avoid an accident. But life is unpredictable. Whatever has to happen will happen anyway? Because accidents occur unknowingly and so are unpredictable. However, the best way you can cope up is by making necessary arrangements. By doing this, you can continue living a stress-free life without worrying about the financial liabilities arising due to any unforeseen incidents.

Understand the Meaning

Personal Accident (PA) Insurance is mostly an add-on cover sold with a life insurance or health insurance plan and also as a standalone policy as well. Here, the insurer will help you financially in case of death or any physical disability caused due to an accident. This may not necessarily be an accident while driving your bike or car or any road accident.

As per IRDAI Health Insurance Guidelines, 2013, an accident is termed as an unforeseen and sudden involuntary event caused by external and visible means. Falling off the office or your building stairs or while driving your car or bike would also be termed as an accident. The premium for this type of policy is calculated depending on your profession rather than your age.

4 Benefits of Personal Accident Insurance

Let’s have a look at the monetary benefits provided by the Personal Accident Cover:

  • Accidental Death or Injuries:

If the insured suffers a death due to an accident, the insurer will pay the sum assured to the nominee of the insurance policy. Usually, this amount is 100% of the sum assured or unless the amount mentioned in the policy terms and conditions.

  • Permanent Total Disability (PTD):

Every insurer has a different rule to calculate permanent total disability. Sometimes it is 50% to 100% of the total sum assured depending on the policy terms and conditions. PTD solely depends on the medical reports submitted by the insured confirming the disability. This should include loss of both hands and feet or loss of any two limbs or loss of complete eyesight. These guidelines by IRDAI are proposed since it becomes difficult for a person to earn his living after getting disabled. By opting for a personal accident cover, a person can manage his finances to a large extent.

  • Permanent Partial Disability:

Permanent Partial Disability would cover the loss of one eye, one limb, loss of fingers, thumb or toes and hearing ability. The payouts are usually 50% to 75% of the sum assured and would still vary from one insurer to another.

  • Total Temporary Disability:

If a person is unable to attend work due to any injury caused because of an accident, then this disability benefit would come into the picture. For instance, someone having a fall and fracturing his/her leg can be bed-ridden for a couple of weeks or sometimes a month too. In this case, the insurer would pay a weekly amount for the period you’re bed-ridden and at times also till you recover completely.

An accident can leave you and your family financially impaired because of a sudden loss of an income. Additionally, the rising costs of medicines can rip off your entire hard-earned savings. In such traumatic and unforeseen situations, having personal accident insurance would act as an income replacement. Even though you already have a term or health insurance, personal accident insurance would be like an extra layer of protection.

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Bryony Jones
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