We often hear, ‘life is uncertain.’ Well, it is true because uncertainty is very much a part of our life and the world we live in. Sometimes, we may also get into an accident because of someone else’s reckless driving or lack of patience. It doesn’t matter if you are a vehicle owner or a pedestrian; you are exposed to the risk of an accident once you are on the road. All accidents are bad, but you can at least be financially secure with personal accident insurance at such times. In case of a road mishap, personal accident insurance covers not only hospitalisation expenses but also the ones for accidental death, total or partial disability, and transportation of the patient.
Let’s observe the two types of health insurance under an accident insurance policy and the miscellaneous coverage of expenses—
Types of Personal Accident Insurance
Like any other health insurance, there are two types of personal accident covers which include—
Individual Personal Accident Cover
As the name suggests, this policy protects an individual in case of an accident. As such, individual personal accident insurance covers costs for injuries, disabilities or even the policyholder's death.
Group Personal Accident Cover
The group personal accident insurance secures a certain number of people. Companies usually buy these types of health insurance plans to safeguard a group of employees against accidents.
The Importance of Personal Accident Insurance
Let's look at why it is important to procure a personal accident insurance policy:
It Secures You Against Accidents
Accidents may cause multiple injuries. An unfortunate mishap may sometimes even result in serious or permanent disabilities or even the person's death.
Recovering from an accident in itself is a trying time for the policyholder as well as for the family. Under such circumstances, if you can remain carefree about medical and other healthcare expenses, much of your stress is reduced.
It Provides an Extensive Coverage
Unlike other health insurance plans, personal accident health insurance provides you comprehensive coverage in the case of a mishap and a temporary or permanent disability.
Personal accident insurance is especially beneficial in emergencies as it does not have geographical limitations and includes worldwide coverage.
If you compare health insurance, other policies do not offer compensation for cases outside India. However, with accident coverage, you can avail the benefits of personal accident insurance, irrespective of the location.
It Comes at Cheaper Premiums
Given the benefits and the coverage offered by personal accident insurance, you will realise the premium cost you need to pay is quite affordable.
In addition to extensive coverage, personal accident insurance also offers lump sum payouts which are rare with other health insurance claims.
What Does Personal Accident Insurance Cover?
Here are some of the inclusions of a personal accident cover:
Death by Accident
Experiencing the loss of a loved one is immeasurable, and nothing can replace their presence. However, if the policyholder is the family's sole breadwinner, and if the claimant meets with an unfortunate death, the financial situation of the policyholder can become dire. In such situations, the health insurance company pays the lump sum insurance amount to the nominee or the dependent. This coverage can be used for the financial security of loved ones in case of a total loss of income.
Permanent Total Disablement
To understand this coverage, let’s first understand the meaning of ‘permanent total disablement'. It refers to bodily injuries or a physical condition due to which the claimant (you) cannot work for a prolonged period or permanently.
This includes loss of sight, hearing, loss of a hand, etc.
If the insured meets with a permanent total disability after an accident, the insurance company pays the claimant the assured lump sum amount.
Permanent Partial Disablement
Should the policyholder sustain accidental injuries that result in a permanent partial disability, the insurance company pays a specific percentage of the insured sum to cover your medical expenses.
Temporary Total Disablement
If the policyholder suffers from a temporary total disability within the policy year during which the claimant is unable to carry out normal work duties, under the personal accident policy, you can claim for daily or weekly benefits for a temporary period.
Personal Accident Health Insurance Benefits
Mentioned below are the benefits of a personal accident health insurance policy:
Includes Medical Care
As the name suggests, accident health insurance plans cover expenses for any accidental injuries, including the cost of treatment and hospitalisation. Depending on your policy, you can receive the best medical care and reimburse the cost from the policy provider.
Takes in Expenses for Burns and Broken Bones
Personal accident insurance includes injuries and disabilities sustained from the accident and covers expenses for any burns, fractured bones or bone damage endured by the claimant due to the accident.
Bears Daily Costs for Hospital Stay
With your personal accident policy, you can avail of an assured payout for medical expenses if the policyholder needs hospitalisation.
Covers Ambulance Services
The claimant can reimburse the cost of ambulance service required for the transportation of the policyholder to the nearest hospital or from hospital to hospital. The ambulance cover, however, depends on an insured sum or a predefined amount.
Provides Education Expenses
If children survive the policyholder, they receive a lump sum benefit to cover the education costs of the children. You can even avail the cover in case the claimant suffers permanent disability due to an accident.
Offers Travel Expenses
Your personal accident insurance includes travel costs from the residence to the hospital. This means that the policyholder or their immediate family members can claim the commute cost from the insurance provider.
Pays Repatriation Expenses
As mentioned earlier, personal accident insurance offers worldwide coverage. Therefore, you can claim air ambulance cover or the repatriation expenses incurred while transporting the mortal remains of the claimant back to their own country.
Covers Funeral Costs
Personal accident insurance reimburses the expenses required for funeral services of the insured after their accidental death. This includes costs required for transportation of the mortal remains, burial, cremation, or other funeral services.
What is Not Covered Under Personal Accident Insurance?
As much as you should know what your health insurance policy covers, you should also be aware of what your plan does not cover.
Personal accident insurance does not cover accidents or death caused due to the following reasons—
Suicide or Intentional Self-injury
The policyholder's family could not issue a claim if his/her death or injury was intentional. The insurance company does not provide coverage under such circumstances.
Accident Caused Under the Influence of Intoxicating Substances
If the policyholder sustains injuries or death because of the influence of drugs or alcohol, the insurance company does not accept any health insurance claims under the personal accident plan.
Injuries from War
Companies don’t honour policyholders with reimbursements for injuries sustained in Civil or Foreign wars as the risk of getting injured is very high.
Injuries from Adventurous Activities
Since the chances of injuries from adventure activities are also very high, expenses for injuries or accidents from such activities are not covered under this policy.
Disablement by Pregnancy/ Childbirth
Policyholders cannot health insurance claim for complications caused due to pregnancy or childbirth.
Pre-existing Illness
The claims cannot be accepted under this personal accident policy if the claimant suffers from injuries or a disability due to a pre-existing or past medical condition.
Injuries from Terrorism-related Activities
Under an accident insurance policy, the claimant cannot reimburse expenses incurred from terrorism-related injuries.
In Closing
The peace of mind and financial security of our family is our number one priority. A personal accident policy protects our family from unexpected expenses that arise due to hospitalisation and medical care. You can even instantly apply for personal accident cover with affordable premiums online. Make sure to study the terms and conditions of personal accident insurance coverage before signing up.
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