April 2, 2023

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Personal Accident Insurance Policy: Types & Benefits Explained 

Personal accident insurance: Policies, types, features and benefits

Personal accident insurance: What Is It? 

A personal accident insurance policy provides compensation to the policyholder in the event of accidental passing away, disfigurement, or injury. Similar to a standard health insurance coverage in India, the primary goal of this policy is to pay for unexpected, unforeseen injury or passing away to the insured. 

Types of personal accident insurance policy

The following types of personal accident policies are available: 

  • A health insurance plan that includes accidental injury protection: A comprehensive health insurance plan can be acquired along with personal accident coverage. For the policyholder or additional people covered by the same policy, it provides a separate insured sum and death benefit. For instance, if this add-on is purchased, the policyholder and the insured family members will get Personal Accident coverage for a Family-Floater insurance plan. *
  • Vehicle insurance with personal accident (PA) coverage: Vehicle insurance coverage must have a minimum of one Personal Accident insurance add-on. The PA cover used to be a required component of third-party liability insurance, but since one person can own many vehicles, the policyholder now has the choice of purchasing a PA cover in addition to vehicle insurance. *
  • As an add-on to the current health plan: Insurance companies offer add-on policies to cover a variety of medical occurrences. As a result, the insured can modify their plan to suit their needs. One of these base plan add-ons is typically offered as an accident cover. *

Why is choosing a personal accident insurance plan important? 

People who are involved in a serious accident may experience significant changes in their mobility, or they may develop a disability. 

There are two categories of disabilities: partial and permanent. In the event of a partial impairment, the wounded party can carry on with their every day activities by making minor adjustments. For instance, losing one limb, one leg, or one of your eyes. 

A person with a permanent impairment may not be able to live their life as they or once did. for instance, losing all of one’s sight, one’s arms, or one’s legs. Financial stability is essential in this situation. 

With the aid of a personal accident insurance policy, financial stability can be restored following a significant accident. Therefore, purchasing this plan to protect your future from a calamity offers you several health insurance benefits. 

Principal advantages of purchasing accidental insurance coverage: 

Every insurance plan comes with financial advantages. Similar to health insurance, personal accident insurance provides financial support in the event that the policyholder or an insured person has an accident-related injury. The following are the main advantages of purchasing a Personal Accident Health insurance plan: 

  • Cost of hospitalisation is covered: Hospitalisation expenses may be incurred as a result of accidents, necessitating rapid medical attention. A personal accident plan will cover the expense of receiving care. *
  • Death benefit: In the event of the policyholder’s passing, a predetermined sum of money will be given to the policyholder’s heirs. The sum insured under the health insurance policy is often the same as this sum. *
  • Handicap coverage: A personal accident insurance policy may provide coverage for certain costs associated with a disability, such as a price of purchasing prosthetic body parts or accessories that make it easier to walk or move around. *
  • Income loss: In the event of a permanent disability, the policyholder will receive a lump sum payment that can replace lost income. Some insurance providers incorporate this option in their personal accident insurance plans. *
  • Coverage for child’s education: In the event of passing away, the policyholder’s child (or children) will be given a certain sum so that their ability to continue their education will not be hampered by the loss of the breadwinner. However, group personal accident insurance policies frequently include this. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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