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Last Updated : Jul 08, 2016 02:57 PM IST | Source: Moneycontrol.com

Why buying personal accident cover is important?

Accidents can cripple an individual and ruin his family‘s future. Here is how an insurance policy protects you.

Yashish Dahiya

Life is unpredictable. In fact, life happens when you least expect it. So, what happens if you meet an accident on your way back home or trip down the stairs and break your back? Scary isn’t it? What is even more frightening is watching your family struggle if any of these, god forbid, happens to you. In such a case, what would you do or let’s put it this way: what can you really do? Yes, you have a life insurance plan to take care of you and your family but, is it really suffice?

Now imagine the same scenario. You meet an accident on your way back home or hurt yourself during the day, which leaves you bed-ridden permanently. But you have what is called a ‘personal accident insurance plan’ along with your life insurance plan. While you may bank on your life cover in case of death, you have your personal accident cover to you rescue in case of disability. We make it simple for you to understand.

Cover against a disability

As the name suggests, personal accident insurance is an insurance cover specifically designed to protect you against any damage caused by an accident. It may be death, complete disability or partial disability, if you have this plan, you are covered. For instance, you met an accident and lost one of your legs, your insurance company will pay you for your disability. In fact, your insurance company will pay you even if you lose your index finger or simply injure yourself accidentally provided you have bought a personal accident insurance cover for yourself. In case you die, your family will get the money. This cover also takes care of your expenditure incurred on the treatments. Some covers also provide for temporary disablement.

For instance, if you have a fracture and cannot work for 2 months and have bought a personal accident cover, in such a case, some insurers provide daily benefit. Assuming that you have bought a cover of Rs 20 lakh and you met with an accident and are bed ridden for 2 months. In such a case, your insurer will pay, what is called a daily allowance or hospital allowance to you. The amount will vary depending upon the specific policy coverage.

Low premiums

It’s not a simple figure of speech. The premiums for an accident cover are actually abysmally low. Go to any of the online insurance comparison portals and see for yourself. For a mere Rs 5 lakh cover, your premiums can be as low as Rs 400 for death, total and partial disability coverage. This is probably equivalent to what you may pay for a meal for two when buying through a food delivery app. However, we suggest that you should always buy a cover, which is at least 10 times your annual salary. This is because, your personal accident cover acts as your income in the event of death or disability. The product currently is an evolving one and most insurers provide a cover of up to Rs 30 lakh online. The higher sum assured can be bought offline.

In fact, we are sure you wouldn’t have heard your insurance agent mentioning this. It is so because the commission made on this plan is almost negligible, in fact very low. That’s why they never sell you this product. They would always recommend you to buy as an add-on cover. The drawback with buying this cover as an add-on benefit is that, in such a case, the cover has a policy term, which isn’t the case when you buy personal accident as a standalone cover. It has life-long renewability. Thus, personal accident insurance covers are absolutely pocket-friendly and you doesn’t need meticulous plan before buying this cover.

Easy claim process

The claim process for this particular plan is very easy. You don’t have to take medical tests to prove your injury in order to claim the money. The process is simple. While informing your insurer about the accident within the time frame specified in the policy, you just have to submit your contact details, policy number, date and time of the accident, location and a brief description of the accident. Additionally, they would ask for a doctor report to assess the extent of disablement. Once you have submitted all these details, your claim would be disbursed.

However, one must note that your family members should also be aware of these details in the event of your death. Also, remember that you should inform your insurer about the accident within the time period specified in your policy.

It is suggested that you buy this policy when young because the chances of an accident is a lot higher. Besides, the lifestyle that most of us have doubles the risk of an accident. Thus, buying this policy young is a wise thing to do.
First Published on Jun 27, 2016 08:56 pm