Accident can occur without warning and their effect can be financially and emotionally challenging. For recovery from this situation purchasing an accidental policy is smart decision.
This offers you a valuable benefit. A personal accident policy covers the death, disability and medicine expense at a very low cost.
According to the National crime records bureau (NCRB) data shows that the road accidents are the biggest threat in India accounting for almost 44% of total accidental death in the country. Personal accidents don’t cover just road accidents but any, mishap. A personal accidental policy will pay full amount in case of death and a percentage of sum insured in case of disability the nature and extent of disability, as certified by qualified doctors, determines the payout to policy holder. We must clarify that a personal accident policy is not alternative to term insurance plan, which cover a person life and comprehensive health insurance policy which covers the hospitalisation expenses. These covers are absolutely necessary to protect your finances against unexpected events.
How much it costs
The good news is that personal accident insurance cost is very low, costing as little as Rs 1,125 (plus 18% GST) for a cover of Rs 25 lakh.
If the policyholder takes a policy against disability, the premium can be bit higher than Rs 2,500 per year. Coverage against disability is very essential because no other policy gives this insurance. In fact this coverage is what really differentiates the personal accident policy from life and health insurance.
Disabilities can be temporary or permanent. A fractured leg that obstruct you from moving is a total disability, but only temporary. A cleave finger is a partial disability, but permanent. The pay-out will be different in both the cases because the earning capacity of the person will vary.
Medical costs for the treatment of injuries occur in the accident might also be added to the coverage .By paying Rs 1,250 more, one can add a third layer of protection that will pay 1% of the sum assured per week during the time the policyholder is disabled. Therefore, if someone purchases a Rs. 25 lakh insurance policy and has injuries that leave him bedridden for eight weeks, he will receive Rs. 25000 every week for that time. This can extent up to a maximum of 104 weeks (two years), and is very useful when serious injuries cause total disablement.
There is also as extension that pays for medical expenses. Similar to the health insurance policy this will pay actual cost incurred on the treatment of injuries caused by the accident.
Which policy should you take?
If we have managed to convince you, your next step would be choosing a policy that suits your requirements. Due to the huge pay-out ratio, there is a very significant fraud in personal accident insurance. Personal injury insurance can pay up to 200 times of the premium.
Types of accident insurance policy
It can be divided into two categories:
1. Individual personal accident policy
Personal accident insurance policy, where the insured select to cover themselves against unexpected accidents. The accidental loses
Covers include accidental death, loss of sight or limbs, or other permanent disabilities resulting from the accident.
2. Group personal accident insurance
This kind of personal accident insurance coverage covers a group of individuals by their work type and location. These are often taken by employers to offer coverage to their employees. Depending to their size of group insurance company provide them discount on premium. This policy is available at a low cost as this is advantage for value addition. However, compared to the individual plan, this is a very basic plan that offers limited benefit.
Some of the benefit it can provide it can provide in provide in times of unexpected events.
Mistakes to avoid
The chances of an accident depend on the risk that one is bare to the premiums mentioned in the story's examples are for sedentary workers who are exposed to typical risk. Certain profession such as construction supervisors, shop-floor workers, travelling salespersons, and security personnel, have higher risks, so the premium will be higher. Incidentally, the age is not a factor in case of accident insurance. The premium is the same whether the buyer is 18 or 58 years old.
At the time of buying a policy, be sure that you correctly mention your employment details. If you are exposed to moderate or high risk, don’t say that have an office job. If the company finds out that you have given incorrect details of employment, the claim will be rejected.
Any health issue or disability in the family should also be mentioned. Lastly be, sure that you mention the name of your nominee correctly.
By offering financial protection, comprehensive coverage, supplementing existing insurance, affordability, and peace of mind, accidental insurance proves to be an essential safeguard against unforeseen accidents. Don't wait until it's too late consider investing in accidental insurance today and secure a brighter, worry-free future for yourself and your family. Always be prepared for the unexpected risk.
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