Personal accident insurance cover does not require any prerequisite medical test, making it ideal for people with recent illness.
Karan Singh had a promising career in a reputed organisation in Mumbai. One of his prized possessions was an apartment (bank financed) in a posh locality. He also systematically planned investments for the future of his wife and children. Being the only earning member of the family, he had a life insurance policy to take care of his financial responsibilities in case of any unforeseen eventualities.
Life changed completely for Karan and his family a day before Diwali. While rushing home from work, he unfortunately met with an accident, paralysing his limbs. Karan was in a state of shock. His monthly income came to a halt. However, the cost of his medication, expenses of the household and EMI of the house loan had to continue. He was unaware of the benefits of a personal accident insurance, as at this point, this cover would have come to his rescue.
ADVANTAGES
The benefits of having a personal accident insurance are many. Along with the basic cover, it also provides coverage from many unexpected events such as natural disasters, airplane accidents, riots and terrorist attacks.
Personal accident insurance is economical and affordable. If taken by large groups or corporates, general insurance companies offer family or group discounts so that the cover can be provided at an extremely good price. The cover is available for everyone, irrespective of the person’s medical condition. It does not require any prerequisite medical test. It is hence ideal for people who are not eligible for insurance covers due to some recent illness. They can still get protection against dismemberment or death due to accidental causes. Unlike other covers which are restricted to India, a personal accident cover gives the insured a worldwide coverage in any situation. One can opt for international covers at a very low premium.
ADDITIONAL BENEFITS
While availing a personal accident cover, one should opt for a policy which provides additional benefits such as accidental hospitalisation cover, temporary disablement cover, education grant (for dependent children), to name a few. Nowadays, companies also offer the option of customising the policy depending on specific events. For example, one can opt for a specific adventure sport, which is usually excluded in a personal accident policy and can insure oneself against a risk arising out of an adventure sport activity. Accordingly, you can choose the risks that are a potential threat to your lifestyle.
EXCLUSIONS
A personal accident insurance does cover a gamut of situations. It typically does not cover accidents while under the influence of intoxicating liquor or drugs, intentional self injury, suicide or attempted suicide, adventure sport, venereal diseases, nervous or emotional disorder, war and war-like situations, professional sports, injury resulting from radioactivity or nuclear waste, to name a few. Also pregnancy-related complications are not covered. It is advisable to read the exclusions on the policy document to be sure about the nature of coverage.
CHARGES
Accident insurance policy offers wide coverage which can be customised according to the customer’s needs and budget. To negotiate the price it is beneficial to opt for a long-term cover as companies offer heavy discounts (up to 30 per cent) on long-term policies. And for any reason, if one chooses to opt for cancellation, he or she can get appropriate premium refunds (ranging from 75 per cent to 25 per cent) depending on the duration of the policy.
(The writer is Chief – Underwriting and Claims, ICICI Lombard General Insurance)
Accident insurance policy offers wide coverage which can be customized according to the customer's needs and budget.Personal Accident Insurance
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