All About Accident Insurance

What is Accident insurance?

Accident insurance helps you pay for the medical and out-of-pocket costs that you may incur after an accidental injury. This includes emergency treatment, hospital stays, and medical exams, and other expenses you may face, such as transportation and lodging needs

Why do you Need Accident Cover?

Contrary to the popular misconception, a medical insurance plan does not provide complete coverage against the losses arising out of an accident. Although some health insurance policies offer accidental riders, these are not as beneficial as a comprehensive accident insurance plan. Even if it is, it only covers hospitalization charges, not loss of income.

An accident policy is designed to cover a number of unforeseen eventualities (although not when there is negligence). Accident plans are annual policies that provide coverage in the event of disability, injury or death; caused by accidental or violent events. This includes situations like road accidents, train accidents, or even a fall in the bathroom.

 ➡ Compensations Available

  1. The insured or the family will receive weekly compensation for loss of income associated with disability or death caused by an accident.
  2. Transportation costs for the family are also covered.
  3. Compensation is also given for cases of fracture. These are usually not covered by many health plans.
  4. When modifications are made to the house or vehicle owing to the accident, such expenses are reimbursed too.
  5. If the insured is a student, they are entitled to reimbursement of tuition fees for the period after the accident that they are unable to attend classes.
  6. On the demise of the insured due to the accident, the cost of the funeral is also compensated for; along with any other related costs.

 ➡ Extended protection:

A basic plan will cover against both death and disability due to an accident and the cover can be further enhanced to give you extended protection.

 ➡ Policy Covers From Minor to Major:

The policy covers all kinds of accidents, whether major or minor, ranging from mishaps such as falling off a bicycle to getting hit by a car.

 ➡ Premium rates:

The premium rates of a personal accident insurance plan are laughably low -you can get an extremely high coverage by paying a premium in the range of Rs.225 which effectively means that the daily cost of you investing in a personal accident insurance plan is about 60 paise. Typically, a PA will cost 0.1 % of the coverage that you get -so for a cover of INR 10,000 you will have to pay about INR 1000 annually.

 ➡ Full disability cover:

It can provide cover against partial, temporary or full disability and even the loss of livelihood.

Types of accidental insurance:

  • Accidental death: The benefits under this plan is payable if demise occurs from a mishap.
  • Accidental disability:It indicates that the policyholder is disabled either partially or wholly.
  • Accidental dismemberment:It indicates that a part of the policyholder’s body has been severed or dismembered. It means, if the policyholder loses his hand or leg or eyes in a mishap, then he would be eligible to get a claim under dismemberment.
  • Terrorism act: Injuries afflicted because of terrorist acts are also included.
  • Daily payment during hospitalization: It gives monetary relief to a patient while he undergoes cure at the hospital.

Factors influencing personal accident insurance:

Different types of insurance products take different factors into consideration while calculating the premium payable and coverage applicable on an individual basis for most customers.

 ➡ Demographic Factors:

Life insurance policies take factors like age, health, income, etc. into account to determine the premium paying capacity, expected lifespan, etc. of the customer.

 ➡ Income & Current state of health:

Health insurance policies take factors like income, current state of health, etc. into account to determine the expected frequency of hospitalizations, etc. of the customer.

 ➡ Exposure to risk:

Personal accident insurance policies take factors into account like exposure to risk, employment category, etc. into account to determine the total risk exposure and likelihood of accidental injury, etc. of the customer.

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