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Why traffic accident insurance is need of hour for metros

By Balwant Jain, CFO, Apnapaisa.com

You are really lucky if you don’t have to travel by rail or road for work.

Besides escaping the daily grind of traveling in over crowded trains and buses, you are also escaping the risk of meeting an accident or getting injured. It is indeed a boon for people especially living in metros. But how many of us are amongst those lucky ones? Almost everyone of us travel long distance for work of course with few exceptions.

This way we see that in addition to the normal hazards of traveling, you have  to endure risk of accidents which may occur during the course of travel.  This  is a major concern particularly for people  who have to travel everyday from the place of residence to the place of work. Here in this piece I would like to share with you a  novel and unique insurance product introduced by National Insurance Company - “Traffic accident policy”.

Though the policy is called Traffic Accident Policy” but in effect it is a combo policy of personal accident insurance and health insurance policy which  covers disabilities, death or hospitalization due to traffic accidents.

This insurance policy is very beneficial  especially for the persons who are on the road for the major part of the day like, sales & marketing personnel, courier boys, office boys and drivers, and are  generally unable to afford a Mediclaim or costly treatment.  Besides, they are exposed to higher  risk of meeting  an accident than others who are in office during the major part of the day.

Eligibility and Premium:

Anyone  between the age of 5 and 70 can purchase this insurance policy. The premium charged for this insurance is flat Rs. 150 for an insurance of Rs. 1 lac, which is inclusive of service tax. It may be noted that the insurance is available for Rs. 1 lac only. 

Accident Insurance Benefit:

Benefits available under this policy can be divided in two parts. First part covers the benefits  which are normally available under a personal accident insurance. Under this part the insurance company pays Rs. 1 lac in case the insured person dies due to an accident. The same amount of Rs. 1 lac is paid in case the insured person suffers loss of two limbs or  two eyes or one eye and one limb. In case of loss of one eye or one limb, this insurance policy covers an amount of Rs. 50000. This policy also covers the cases of permanent total disabilities. In such a case also the insurance company will pay such person Rs. 1 lacs. One important point to be noted about this policy is that though the policy is named as “Traffic Accident policy” this policy covers all the accidents and not only the accidents arising out of traffic accidents as far as benefits payable under the personal accident category is concerned.

Benefits of Hospitalisation

The second part of the benefits covered under this policy is the soul of the policy and a reason compelling enough for every one of us to buy this insurance policy. Under the second part an insured person can claim the reimbursement of medical expense incurred by him for treatment of bodily injuries as a direct result of a road or rail accident. This amount of Rs. 1 lac covers expenses incurred on medical as well as surgical treatment in any nursing home or hospital. Since the probability of getting hospitalized all of a sudden may arise only due to accident only as least for the persons who are young and healthy, this policy offer value for money preposition.

Reimbursement of expenses incurred in OPD & Ambulance

Another unique feature about this policy is reimbursement of expenses incurred without  getting admitted in the hospital i.e. expenses incurred in OPD department of a hospital. Normally no other health Insurance Policy covers any expenditure incurred in out patient department (OPD).  The amount covered for OPD under this policy is restricted to Rs. 10, 000  within the overall limit of Rs. 1 lac.

In case the patient can not be moved to the hospital or the patient can not be admitted in a hospital due to lack of accommodation in the hospital, the domiciliary hospitalization expenses are also covered under this policy.

Assignment of benefits

Moreover the policy also allows the insured person  to nominate an  assignee to receive the benefits payable under this policy in case of death arising out of accident.

Since this is an accident insurance policy the process and the form to be filled up for the same are very simple. A person desiring to buy this insurance has to just provide the details of his name, address, date of birth and annual income. In case one is suffering from any existing disability, he has to disclose the same in the form, however I do not see any relevance of the same in underwriting the policy. No medical examination is required for taking this policy as the hospitalization is supposed to cover hospitalization arising our of traffic accidents only.

Considering the benefits offered under this policy, the cost of Rs. 150 is negligible and even a person with very small means can also purchase this insurance policy so as to ensure that he can avail the twin benefits of disabilities due to accident as well as medical expenses incurred for hospitalization due to the road or rail accident.

For details about the offices of National  Insurance Company, you can visit the following link

http://www.nationalinsuranceindia.com/nicWeb/nic/CShowOffice

In case the concerned person at the office of the insurance company is not aware about existence of this policy, you can use the following link of the insurance company where this policy is listed.

http://www.nationalinsuranceindia.com/nicWeb/nic/PolicyServlet?id=9999&name=4820.html

So spread the good word, encourage your family members and friends to take this policy by paying a negligible amount and in return getting substantial peace of mind.

ApnaPaisa is India's leading price comparison site for financial products such as loans , credit cards and insurance plans . Author can be reached at www.facebook.com/apnapaisa .

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