What is Personal Accident Insurance Policy Benefits?

Personal accident insurance is an agreement between the insurance company and the person insured where the former will provide financial compensation to the latter or his/her family in case of permanent disability/death caused directly and only due to any accident.

A personal accident policy is the best way to cover oneself for a higher limits for both death and disability. The premiums are very low and a 1cr cover should not cost more than 6k per year, if the person is under preferred risk class of the insurance company(admin staff, engineers, managers, entrepreneurs etc). The categorisation is unique to each insurer.

The broad coverage is already answered by a few of the active Quora members. The biggest advantage in this policy is coverage for disability. Remember, to counter a disability is more expensive than death as the primary insured member is dependent on family for his/her living. Not only, the family is deprived of the loss of income of the bread winner, but they also have to suppprt them for living.

There are plenty of options in the market. The top 3 personal accident plans are from Bajaj Allianz (Global protect plan), Tata AIG, Future Generali. Bajaj Allianz’s plan is extremely beneficial with the various riders that the insured member can opt including double disability cover, hospitalisation, coma, loss of income, adventurous sports extension etc. And above all, they can offer as high as 20 cr as sum insured depending on their Uw guidelines.

Auto insurance provides Liability coverage for property damage and injuries to third parties caused by your negligence. Your insurance company will indemnify you (pay on your behalf) all claims for which you are legally liable. It will defend you if you are sued by a third party.

Coverage is limited to the policy limit you chose. Statutory minimum liability limits are inadequate for all but the most minor accidents and leave you holding the bag for anything more. Don’t settle for that amount. More coverage becomes less expensive with each additional increment.

What it covers?

Accidental death 

If the insured meets an untimely death because of an accident, their dependants or nominees are paid death benefits, so they are covered against financial insecurity.

Permanent total disability

If the insured is rendered completely disabled in a permanent way that is beyond the ability of medicine to heal, they will be entitled to avail benefits pay-outs, as mentioned in the guidelines of their policy. Even if the disability was not prominent at the time of the accident, but arises as a result of an accident within a year of it occurring, the insured will be able to avail benefits.

Permanent partial disability:

If the insured is rendered partially disabled in a permanent way that is beyond the ability of medicine to heal, they will be entitled to avail benefits pay-outs, as mentioned in the guidelines of their policy.

Temporary total disability:

Depending on the individual personal accident policy you purchase, you may be able to avail temporary total disability coverage. Under this benefit, if the insured individual is rendered completely disabled, even if on a temporary basis because of an accident, they are eligible for benefit pay-outs. This type of disability refers to a condition that can be restored by treatment or medicine, and the insured can return to their original productive and working capacity.

Major Exclusions

  • Intentional injury.
  • Injuries from a civil or foreign war.
  • Injuries that are incurred because the policyholder was under the influence of drugs or alcohol.
  • Injuries incurred because of active participation in violent public disorders or labor disturbances.
  • Injured on duty with any of the armed forces.
  • Injuries that arise because of participation in any adventure sports.
  • Claims that arise out of past illnesses or sicknesses.
  • Claims that arise out of pregnancy or childbirth-related issues.

Most “Accident” policies are a Accidental Death and Dismemberment (AD&D) policy. An AD&D policy only pays if a person losses his or her life or body part due to a covered accident. Accidents usually do NOT include flying in n private aircraft, high risk sports, or medical illness.

Some of the most important features that an individual searching for an effective Personal Accident Insurance should be looking out for:

Permanent Total Disablement: In case of lifelong permanent disability of the insured, the pre-decided sum is payable to the nominee, that is, the insured policyholder.

Permanent Partial Disablement: In case of injuries to the policyholder that has led to his/her permanent impairment, a specific pre-decided compensation is payable to the insured. The reimbursement is decided by the concerned insurance company on the basis of the extent of injury or impairment.

Temporary Total Disablement: This is generally a weekly payment that is restricted to a certain limit. This reimbursement serves as a compensation for him/her to recover from temporary loss of income, arising from the short term impairment.

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