Personal Accident/ Disability Insurance
Updated: Aug 26, 2022
A personal accident policy is a sort of insurance that protects you from death or disability as a result of an accident. The policy pays a lump sum payment to the policyholder's nominee in the event of death due to an accident.
Why opt for Personal Accident Protection?
A little accident may momentarily put a person at risk, but major ones may have a lasting negative effect on the victim's life and general wellbeing. It is therefore essential to purchase a reliable insurance policy to safeguard oneself from any such undesirable occurrences. An accidental insurance policy is created with the intention of providing some relief to the victim or a dependent.
If an accident results in death, bodily harm, incapacity, or mutilation, personal accident cover provides compensation. In the event of a rail, air, or road accident, drowning, or owing to a collision, bodily injuries, burns, etc., compensation is offered.
Regardless of the severity of the incident, a personal accident insurance policy provides the policy-holder with financial assistance in the event of unintentional impairments. The insured person is given compensation in the event of an accident-related death, disfigurement, or incapacity.
The top personal accident insurance policies in India assist the dependent family members by providing them with financial support in the event of the tragic accidental death of the policyholder. In the event of an accident-related impairment, the policyholder will also receive reimbursement for lost wages. It protects against the most unlikely situations while ensuring mental tranquility.
Hospitalization coverage, hospital bill payment, ambulance cost reimbursement, and other benefits are also available.
Why opt for Personal Accident Insurance with Life or Health Insurance?
Life insurance and health insurance are insurance products that cover certain events and provide insurance coverage to protect the policyholder or his or her dependents from the financial consequences of those events.
As a product, life insurance provides a financial benefit to the dependents or nominees of a person who has died. Health insurance, as a product, functions as a buffer, reducing the costs incurred as a result of hospitalization for whatever cause.
Personal accident insurance is a policy that provides additional coverage for a broader variety of potential accidents or disasters that may occur in our daily lives. A personal accident insurance policy covers the loss of limbs or disabilities caused by accidents while travelling, commuting, at work, due to the hazardous nature of work, or due to external circumstances, among other things. This is the insurance policy to get if you want to build a financially stable atmosphere in case of any unforeseen circumstances.
Benefits and Coverage Under Accidental Insurance Plans:
Accidental Death - If the insured party dies untimely and tragically as a result of an accident, the policyholder's nominees or dependents will be paid a death benefit to protect his or her dependents from financial insecurity.
Permanent Total Disability - If the insured party is made entirely incapacitated in a way that is permanent and beyond the capabilities of medicine to treat, he or she will be entitled to a benefit payment under the terms of the insurer's policy. The insurance company is obligated to give the policyholder a benefit even if the disability occurs within a year after the accident.
Permanent Partial Disability - If the injured party is permanently crippled in a way that is beyond medicine's power to treat, he or she will be entitled to a benefit payment according to the insurer's rules. Some insurers have varying definitions of partial disability and include terms that specify that the disability will only be considered if it prevents the policyholder from generating a regular income.
Temporary Total Disability - Some policies contain temporary complete disability coverage, which stipulates that if the policyholder is rendered totally handicapped, even if it is only for a short time (due to an accident), he or she is entitled to a benefit payment. Temporary total disability means that the policyholder can be restored to his or her original working and productive capability through medicine and treatment.
Temporary Partial Disability - A few personal accident insurance policies provide coverage for temporary partial disability caused by an accident. If the policyholder is made unable to earn an income through productive labor as a result of an accident, he or she will be qualified for the benefit pay out under the insurer's terms.
Type of Insurance Under Accidental Insurance Plans:
Individual personal accident policies: These are the most frequent types of personal accident policies, in which the policyholder purchases insurance to protect himself and his dependents from financial ruin. An individual policyholder can sometimes add his or her parents or dependents to the plan's coverage while still keeping the insurance as an individual policy.
Personal accident policies for groups: These policies apply to groups of people who have something in common, such as their occupation or location. The majority of insurers provide personal accident policies as group policies with slightly different terms and conditions. If their exposure to a potentially harmful job or living environment is greater than most others, a complete group of workers or a demographic of individuals with something in common can take this policy.
Covers available:
Accidental Hospitalization Expenses
Adventure Sports Benefit
Air Ambulance Cover
Children Education Benefit
Coma Due to Accidental Bodily Injury
EMI Payment Cover
Fracture Care
Hospital Cash Benefit
Loan Protection Cover
Loss of Income Due to Disability From Accident
Road Ambulance Cover
Travel Expenses Benefit
Following is for the illustration purpose, when applying to the Permanent Partial Disability Sum Insured, the insurer agrees to pay only the percentage listed in the table below, there is often misunderstanding that people get 100% reimbursement.
Hearing of both ears​ | 75% |
An arm at the shoulder joint | 70% |
A leg above mid-thigh | 70% |
An arm above the elbow joint | 65% |
An arm beneath the elbow joint | 60% |
A leg up to mid-thigh | 60% |
A hand at the wrist | 55% |
A leg up to beneath the knee | 50% |
An eye | 50% |
A leg up to mid-calf | 45% |
A foot at the ankle | 40% |
Hearing of one ear | 30% |
A thumb | 20% |
An index finger | 10% |
Sense of smell | 10% |
​Sense of taste | 5% |
Any other finger | 5% |
A large toe | 5% |
Any other toe | 2% |