Any insurance plan that exclusively provides financial coverage to individuals for consequences emerging from accidents is termed as a Personal Accident Insurance Plan.

Accidents are an unfortunate reality of the world we live in. In India, around 1200 road accidents [1] occur every day. According to the Ministry of Road Transport and Highways, 4.64 lakh accidents happened in 2017, and almost 1.47 lakh people died on the Indian roads due to accidents.

Further, there was a rise of 1.68% in accidents in 2018. Not just on the roads, but accidents may occur anywhere (even in the places that are deemed to be safe) and cannot be apprehended beforehand. A major accident can cause disability, disfigurement, paralysis or even death of an individual, resulting in loss of income. This can leave the rest of the family in mental and financial stress. Personal accident insurance can act as your saviour in case of any accidental damage.

A personal accident cover bears the medical expenses of treatment of injuries succumbed by the policyholder and provides financial aid in case of loss of income due to death or disability.

What are the benefits of personal accident cover?


Accidental Demise:

The sum insured is paid to the nominee, in case the policyholder dies in an accident.

Permanent/partial disability:

Compensates for the loss of income, in case of permanent or partial accidental disability.

Dismemberment:

Compensates for the loss of income, in case of dismemberment (loss of limb).

Medical Expenses:

Covers the medicinal expenses incurred for treatment of injuries to the policyholder.

What is covered under personal accident cover?

Following are the inclusion of a personal accident cover:
  • Accidental death
  • Permanent total/partial disability
  • Accidental dismemberment (loss of limb)
  • Ambulance and hospitalisation charges
  • Medical expenses
  • Life support benefit
  • Burns and broken bones
  • Daily allowance (in case of loss of income)
  • Child education support

What is not covered under personal accident cover?

Below mentioned are the exclusion of a personal accident cover:

  • Natural death
  • Any pre-existing injury or disability
  • Use of alternative medical treatments (Unani, Ayurvedic, Homeopathic etc.)
  • Any self-harming acts (Suicide or purposeful overdose)
  • Accidents resulting from drunk driving or use of other intoxicating agents
  • Injuries/death from illegal activities and criminal act
  • Injuries/death due to involvement in military, naval and air force
  • Injuries/death due to participation in sports and adventurous activities
  • Injuries/death due to mental disorder
  • During pregnancy/childbirth

Life is full of uncertainties when you are travelling to your destination. A personal accident cover can prove to be beneficial to make you feel safe and secure at every point of life (and after it, for that matter). It ensures that your out-of-pocket expenses are minimal in case of accidental contingencies and the lives of your family members keep on going even in your absence. Hence, even if you have a health insurance policy, it is advisable to top it up with a personal accident cover to increase the scope of coverage.

Learn more about Health Insurance Plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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