What Is a Personal Accident Insurance Scheme?

4 min read

An accident can often be traumatizing. It does not just leave you shattered emotionally and physically but can also dig deep into your savings, thus causing a financial setback as well. Keeping the unpredictability of life in mind, it becomes very essential to be under the umbrella of Personal Accident Insurance, so that even if tomorrow something goes wrong, you would have a financial backup plan in place. Having accidental insurance becomes all the more vital if you are the primary earning member in your family, or you tend to travel a lot, or if you are involved in a profession that is considered to be risky.

If you or someone you know is looking for accident care plans and wants to purchase Personal Accident Insurance, read on.

What Do You Mean by Personal Accident Insurance?

Personal Accident Insurance is a health insurance plan. If the insured member gets involved in an accident, the insurance company takes care of the medical expenditure. The accident care policy also covers disablement that is caused because of an accident. Loss of life is also covered under such plans.

 What is Covered Under Personal Accident Insurance?

  • Accidental Death: When a policy is purchased, the policyholder selects a sum insured. In case of his/ her accidental death, the nominee receives 100% of the sum insured as a lump sum amount.
  • Permanent Disability: Accidental insurance also covers permanent disability that is caused because of an accident. A pre-decided amount is paid out to the insured member.
  • Permanent Partial Disability: In case of an accidental injury the insured suffers any permanent disability, a pre-decided amount is paid out to him/ her.
  • Temporary Total Disability: If due to an accident, the policyholder suffers a total disability, even if it is temporary, he/ she would receive a pre-decided amount.
  • Other Covers: Depending on the company and the plan that you have opted for, the following may also be covered under Personal Accident Insurance:

Broken bones

Ambulance services

Hospital cash allowance

2nd and 3rd-degree burn injuries

What are the Benefits of Personal Accident Insurance?

If you are still contemplating whether to invest in Personal Accident Insurance or not, take a look at the advantages:

  • Financial safety net for your loved ones
  • No medical tests or screenings are required to purchase an accident care policy
  • You can purchase the plan for yourself as well as your family
  • Accidental insurance offers wide coverage at reasonable prices
  • Personal Accident Insurance provides global coverage
  • Minimal documentation is required
  • Some accident plans cover individuals up to the age of 70 years

How Much Personal Accident Insurance is Enough for Me?

Most people have this doubt, as to how much would be enough. As per most financial experts, the coverage is directly dependent on your income. To calculate the amount you need as Personal Accident Insurance cover is about 100 times of your income in a month. For instance, if your monthly salary is IR 1 lakh, then 100 times INR 1 lakh is INR 1 crore.
With such a sum insured you can rest assured that even if an accident takes place, your loved ones would receive enough compensation. This amount can be used in replaying your salary, repayment of loans, children’s education, etc.

How Do I Make a Claim Under My Personal Accident Insurance Plan?

To make a claim you would have to follow the procedure of the company that you have opted for, however, most companies these days try to keep very simplified claim procedures so that the customers can get their claims easily and quickly.

After an accident, you would have to notify the insurance company at the earliest, preferably within 24 hours of the accident. This can be done telephonically, via email, or if possible through online registration on the company website. After the intimation, you would have to fill in the Claim Form, providing all necessary details and documents. Most companies, in most cases, settle their claim in a week or 10 days.

Life is unpredictable, and though we may not always be able to prevent an accident, we can keep ourselves ready to deal with one. Personal Accident Insurance is a safe and secure way to keep yourself and your loved ones covered. So, in case you are in a profession that entails a lot of traveling or involves uncertainty and risk, it is highly recommended that you invest in a Personal Accident Insurance plan. Such an accident care policy will ensure the welfare and safety of your loved ones. Even in an unfortunate accident, you will be financially secure.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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