While we often pay attention to factors like the sum insured, benefits, inclusions, and exclusions, it’s essential to consider them. Accident insurance is a part of most health insurance plans. Ensuring you get medical expenses covered for accidental injuries is a huge relief. This coverage typically includes both emergency in-patient hospital stays and ambulance costs.
Importance of an Accident Insurance
Many people need to be made aware of why they must buy accident insurance. But if you think about your family’s safety and financial security and how they can sustain themselves in your absence or inability to earn, accident insurance is beneficial. Here are a few benefits to help you get a better idea about the policy:
- Mental peace and family security
The insurance company will pay the total 100% compensation if a death occurs because of an accident. The family members can use the amount for several purposes. This gives you and your family financial stability.
- Minimal documentation
Buying this policy is easy and does not involve a lot of paperwork. You can purchase the policy without taking too much stress about the documentation. The insurance company will properly guide you.
- No need for medical tests
This is a massive benefit of the policy; unlike others, you will not need to show test reports. The insurance company will not require you to undergo medical tests before issuing the policy.Some medical insurance plans include personal accident coverage, for which you must pay a separate premium.
- Worldwide coverage
This policy has no geographical limitation; you can get the policy benefits irrespective of the location of the accident.
- Easy Claim Process
You may choose any accident insurance policy; the claim process is easy and quick. You must submit an application to the insurance company online or offline, and post verification of the claim is approved and paid to the policyholder or the nominee.
Inclusions of an Accident Policy
Accidents can happen to anyone and at any time. It can cause death and leave a person disabled temporarily or permanently, it also causes loss of income, and the financial burden of medical expenditure can take away your mental peace. A personal accident insurance policy helps you deal with a sudden financial crisis owing to an accident. If you are the family’s sole breadwinner and come across an accident, it can be emotionally and financially challenging for you and your family. A personal accident policy has the following features:
- Accidental death benefit – If the insured person meets with an accident and there is a case of unfortunate death, the insurance company pays the entire sum insured to the nominee.
- Permanent total disablement – Accidents can leave a person disabled. In such cases, the policyholder receives a certain percentage of the sum insured.
- Permanent partial disablement – A small percentage of the sum assured is paid to the policyholder if he suffered partial disablement due to an accident. The money would be spent weekly or monthly if they had a loss of hearing in one ear, loss of index finger/any other finger, loss of one hand, etc.
- Temporary total disablement – The policyholder gets weekly benefits for accidents if they are bedridden for a specific time due to fractures in their hands or legs.
- Education grant – The most significant benefit of this policy is that it bears the education cost of a maximum of two kids of the policyholder till the age of 23.
- Transportation of mortal remains – If a death happens due to an accident, the insurer pays a fixed amount for the human remains.
Exclusions of Personal Accident Policy
Accidental policies do not cover the following:
- Self-harm, suicide
- Influence of intoxicating drugs or alcohol
- Breach of law with criminal intent
- Pre-existing disability/accidental injury
- Death or disablement resulting from childbirth and pregnancy
- Damage due to being in a war
Personal accident insurance is a stand-alone insurance policy and can be purchased as a rider or add-on cover. This policy helps you stay prepared for unexpected situations. Before signing the policy, compare the policies and look at the inclusions, exclusions, and other terms and conditions.