ARTICLES

Accidental injuries can happen to anyone. In the case of injuries requiring treatments, your health insurance plan can cover the hospitalisation costs. However, in the case of accidental death or permanent disablement, the financial loss is considerable. To guard against such losses, a personal accident cover can come in handy.

What is a personal accident cover?

A personal accident cover is one that covers accidental contingencies, mainly death and disablements. A lump sum benefit is paid in the case of claims.

You should remember that accidents not only mean road accidents. Accidents are any form of the event which is external, violent and unpredictable. For instance, a plane crash or a simple fall down the stairs are also considered accidents. 

Coverage and exclusions

A personal accident cover provides coverage against the following contingencies –

• Accidental death

• Accidental total and permanent disability 

• Accidental total and partial disability

If you opt for a standalone personal accident plan, you can also avail coverage for the following –

• Temporary total disability

• Education fund for children

• Loss of employment

• Funeral expenses

• Cost of transporting the dead body

When it comes to exclusions, accidental contingencies suffered due to the following causes are excluded –

• Suicides or deliberately attempted injuries

• Drunk driving

• Driving under the influence of drugs

• Participation in hazardous acts or adventure sports

• Criminal activities

• War and terrorism

Benefits of personal accident cover

• It provides an additional layer of coverage besides life insurance and a health insurance plan.

• If you have opted for a standalone policy, you can get a comprehensive scope of coverage in accidental emergencies.

• You can avail of a considerable coverage at very low premiums.

• The plan helps in providing financial security in the face of accidental death and disability. 

Buying a personal accident cover

The personal accident cover is available in many forms. These include the following –

As a rider in life and health insurance

Life and health insurance policies offer personal accident cover as an optional rider. You can choose the rider with the base plan by paying a fractional premium and enjoy coverage against accidental deaths and permanent disablements.

However, remember that in such plans the sum insured might be limited as it is usually equal to the base plan’s coverage level with an upper limit. Moreover, the coverage features might also be limited as temporary disablements are usually not covered.

With motor insurance plans

There is a mandate to have a personal accident cover with a bike or a car insurance policy. However, if you already have an existing personal accident cover, you can skip availing the same with your motor insurance plan.

Under motor insurance plans too, the sum insured is limited to Rs.15 lakhs. However, the premium is very low.

As a standalone policy

A standalone personal accident policy provides the most comprehensive scope of coverage. Moreover, the sum insured is determined as a multiple of your income allowing you to avail of higher coverage. You can buy a standalone plan from any general insurance company and even get the chance to customise your coverage as per your needs.

So, opt for a personal accident cover and make your insurance portfolio stronger.