Personal Accident Insurance: What You Must Know?

The journey through life is not always straight and even. A personal accident Insurance policy ensures that you and/or your family are financially covered and protected if there is an accident. It covers you financially against any partial or complete disability caused due to such an incident and pays out a lump sum amount in case of a death.

Personal accident insurance provides you with financial protection against

1. Temporary or permanent partial disability
2. Temporary or permanent full disability
3. Accidental death
4. The dismemberment of limbs in accidents such as arms, legs, toes, fingers, etc.
5. Some policies cover you against burn injuries as an add-on.

While a life insurance policy covers you against death caused due to illness, it does not cover you against accidental death. Similarly, health insurance also only covers in case of hospitalisation. A personal accident cover fills this gap perfectly.

1. Incidents such as self-injury, suicide, pregnancy & childbirth, death due to natural causes, pre-existing disabilities, injuries when intoxicated, and non-allopathic treatments.
2. Accidents caused while serving in the army, navy, or air force or any other wartime activities.
3. Accidents or injuries that occurred while being involved in criminal activities.
4. Adventure activities such as skydiving, mountaineering, trekking, parasailing, paragliding, and others are also not covered by personal accident insurance policies.

Claiming the cover under the personal accident insurance requires presenting the medical certificate if the insured has suffered a permanent disability or a death has occurred. When the disability caused is temporary, the insured needs to submit a medical certificate and certificate for leave of absence from work as the policy, in that case, will supplement as the insured’s income.

Following factors may impact your premiums;

1. As you age, the risks of accidental injuries also grow, which may increase the premiums.
2. A more frequent hospitalisation may increase the premium as you are in the high-risk category.
3. The insurer will look at your exposure to risk depending on the occupation. For instance, you may be at a low level of risk if you’re a teacher as compared to a mine worker.

While a life or health insurance provides great protection, a personal accident insurance scheme covers you where the other polices don’t. Thus, it is essential to choose the right personal accident cover policy for complete protection.

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.