Factors to Consider While Choosing Personal Accident Insurance

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5 min read

Updated on Jan 23, 2023

In the present time and situations, no one can deny the importance of health insurance and Personal Accident insurance in India. Let us take a look at the factors to be considered while buying a Personal Accident Insurance.

The rate at which accidents are taking place in India, it has become indispensable for everyone to have a personal accident insurance cover.  Accidents are caused without warning and they create an emergency situation for the victim, especially if the injuries are severe. Also, with serious injuries the treatment expenses become high. It may make the person physically handicapped and impact his/her income or earning. Hence, it is very necessary to protect your family members from such situations by buying a personal accident insurance policy.

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What is Personal Accident Insurance?

Personal Accident policy is one that offers all-inclusive financial security to the insured against health emergencies arising out of accidents including deaths, bodily injuries, partial and total disabilities as well as temporary and permanent disabilities.

Thus, if an insured meets with an accident, his/her family can claim for financial assistance in the event of accidental death, bodily injury or any other disability of the insured. The family or nominee can receive 100 % reimbursement in case of death of the insured which is equivalent to the amount of sum assured.  In addition, compensation can also be received by insurance companies for disabilities of speech, eyes, limbs etc.

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Types of Personal Accident insurance

Personal Accident insurance are of two types – Individual Personal Accident Insurance and Group Personal Accident Insurance.

1. Individual Personal Accident Insurance – This is a type of insurance that safeguards the policyholder from various accidental damages including accidental deaths, loss of eye sight, loss of body parts, any other disability caused by the accident.

2. Group Personal Accident Insurance – The group personal accident insurance plans are normally purchased by employers or companies to provide coverage to their workers. Depending on the company size as well as the total employees working in an organization, insurance companies allow discounts under these schemes. These group personal accident insurance ensures the financial security of employees in case of any mishap at the workplace.

Now, let us take a look at the various factors which need to be considered while choosing a Personal Accident insurance policy.

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Aspects to Consider While Buying Personal Accident Policy

Below are the key factors to be considered:

  1. Premium – Checking the premium amount that the policyholder has to pay for the personal accident insurance is important before you finalize on a plan. The policyholder has to regularly and continuously pay the premium amount to the insurer to avail the benefits of the coverage. Hence, it is important for the premium to be affordable and within your budget.
  2. Coverage – Coverage is the prominent aspects to consider when it comes to Personal Accident Insurance Policy. Coverage, under a personal accident plan, refers to the degree of risk covered under the policy in case of an accident. The policyholder of a personal accident insurance plan should ensure that the plan offer coverage to all possible types of accidents that might be caused by your regular activities. Further, for frequent travelers it is important to ensure that the personal accident policy includes global coverage together with covering your other needs.
  3. Sum Assured – Sum insured is the maximum limit of insurance coverage that an insurer offers to the policyholder during a policy period. Hence, it is necessary to consider a satisfactory sum insured to cover your requirements.
  4. Inclusions – Inclusions are the things covered under an insurance policy. In terms of Personal Accident Insurance policy, inclusions refer to different accident scenarios which are included under your Personal Insurance Policy. Thus, while choosing a policy it is good to ensure that it covers all the probable accident scenarios.
  5. Exclusions – Exclusions refer to the things which are not included under an insurance policy. It is crucial to go through the policy document very carefully to check the exclusions of your personal accident policy. Some policies cover certain exclusions in the form of add-ons, which can be availed by the policyholder by paying a higher premium. You must ensure that the accident scenarios that you require the most don’t come under the exclusions.
  6. Claim Settlement – The better the claim settlement ratio of the insurance company, the better it is to get your claims settled in an easy and hassle-free manner. Hence, it is important to consider the CSR of the insurer before buying the insurance policy. Further, the policyholder must follow the claim process well and submit all necessary documents to get the claim settled with ease.
  7. Coverage Outside India – For people who travel frequently, it is important to have accident coverage outside India. So, make sure your personal accident insurance allows coverage within India and across boundaries.
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Personal Accident Insurance – Common Inclusions and Exclusions

Below are few common inclusions and exclusions of Personal Accident Insurance:

Inclusions  Exclusions
Accidental death of policyholder Natural Death
Any permanent disability Pre-existing injury/disability
Any partial disability Self -inflicted injury
Hospitalization charges Suicide
Broken Bones Pregnancy
Burns AYUSH treatment
Ambulance Charges Injuries caused by participation in adventure sports
Daily Allowances
Child education support
Accidental Dismemberment

To Conclude 

Accidents and medical emergencies are unpredictable and they indeed drain a family financially. Hence, it is necessary to ensure safety and financial protection from such financial aftermaths. So, it is imperative to buy accident insurance coverage in case you don’t want to see yourself and your family under such circumstances.

With a Personal Accident Insurance Policy, you can get exclusive cover against medical expenses arising out of accidents. However, before you finalize on a personal accident policy, compare and analyze the various criteria to buy the best policy and to ensure the security of your dear ones.

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FAQs on Factors to Consider While Choosing Personal Accident Insurance

Does your health insurance policy offer coverage against personal accidental injuries?

Generally, health insurance companies do not cover accidents as part of their regular coverage. Moreover, even if any company allows the same, it is limited to the defined guidelines as per their policy document.  Thus, it is necessary to buy a personal accident plan as a separate policy so that you can get complete coverage against accidents or at least purchase an add-on accident cover under your health insurance plan. 

 Shall I buy a Personal Accident Insurance Policy under my health insurance plan or motor insurance Policy?

As per the Indian Motor Vehicles Act, every vehicle owner must have a personal accident cover mandatorily. However, if you haven’t purchased a personal accident cover under your motor insurance plan, you can get it as part of your health insurance plan.

What are the documents needed for claim settlement in case of a Personal Accident Insurance Policy?

Below mentioned documents are required during the claim settlement process of Personal Accident Insurance:

Copy of insurance policy
Details of the insured
Completed and signed claim form
First Information Report (FIR)
Medical certificates
Original death certificate (in the case of death)
Medicine bills
Bill of Doctor’s fee etc.

Which is the best personal accident policy?

Below are some of the top insurers offering best Accidental Policies:

Bajaj Allianz General Insurance
HDFC Ergo General Insurance
Niva Bupa Health Insurance
Care Health Insurance

What are the various types of personal accident policies?

There are two different types of personal accident insurance available - individual personal accident cover and group personal accident cover.

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Jan 20, 2023
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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