What is Personal Accident Insurance
2022-03-22 12:33:46Personal accident insurance provides coverage against unpredicted events like accidents that cause bodily injury, permanent disability and accidental death. It includes everything during hospitalizations like pre and post hospitalization expenditures and gives a daily cash allowance of up to one month, depending upon your insurance company. Personal accident insurance keeps you in the bank in case of loss of income for a certain period, which depends on the insurance you choose. It also covers the educational expenditure of the policyholder's children in case of any natural calamity.
To choose the best personal accident insurance scheme, you have to compare different policy plans on different websites and select one that fits your budget. Square insurance provides some of the best personal accident insurance plans, which can relieve you from exhausting your bank balance in case of any accidents. An accident can damage your body parts permanently, lead to bodily injury and in the worst case, can lead to death. We are just energies living on this planet using the body's source. Death is unpredictable, but one thing that you can predict is the future of your family members by choosing a suitable personal accident insurance scheme. A personal accident insurance cover acts as a shield to protect you from wiping out your bank balance during an accident or, in the worst case, death. In case of death, the policyholder's nominee gets the whole amount.
Top ten highlights of Personal accident insurance scheme.
Personal accident insurance means you get a cover from the insurance policy company to save you from emptying your bank account in just a few hours. Here are the ten highlights of the personal accident insurance scheme.
- On the death caused due to an accident, the policyholder's family gets the total sum of money.
- The policy helps the policyholder in partial or permanent disability caused due to an accident.
- A personal accident insurance scheme offers you lifelong coverage, and it is renewable.
- The premium of the personal accident policy remains the same throughout the term of the scheme.
- Covering the financial loss of the insured's family during the accident or death of the policyholder defines the personal accident insurance meaning.
- The policy does not cover the loss due to death caused by any illness.
- The nature of the accident does not matter under the personal accident policy. Everything from a severe road accident to broken bones falling on a banana comes under a personal accident insurance scheme.
- The accident which requires hospitalisation is given a daily cash allowance to the policyholder.
- All the disabilities due to accidents come under personal accident insurance cover.
Quick Links
- Things that come under the personal accident insurance policy.
- Some facts about accidents in India
- Types of personal accident insurance schemes
- Why choose Personal accident insurance?
Things that come under the personal accident insurance policy.
These are the few things that do not come under the personal accident policy.
- Injuries or loss caused due to suicide is not covered.
- Accidents caused due to adventure sports activities are not covered.
- Injuries caused due to personal fighting and war will not come under this policy.
- Participation in defence operations will not come in the personal accident insurance cover.
- The policy does not include injuries caused by participating in a hazardous activity.
- Accidents caused during the intake of alcohol are also not covered.
Some facts about accidents in India
A survey portrayed that nearly 1214 road accidents occur every day in India. In recent years the probability of road accidents has increased. Road crashes will rise by 10% in 2021 compared to the previous year. Six per cent of total road accidents take place only in India. Wherever you go on the road using your vehicle, there is a probability that you could never return safely. Due to the increase in population, road accidents are rising exponentially in India. To protect yourself and your family from simply a large amount of money during road accidents, you need to take a personal accident insurance policy. If you are a normal human being without much knowledge about finance, you will easily get confused due to the availability of many options in the market. To select the best policy, you need to note down all your requirements and the cover the policy offers. Check what the policy covers under its terms and conditions during the hospitalisation.
Types of personal accident insurance schemes:
Accidental insurance policy is further of two sub-categories. Here is a quick glimpse of the two variants.
1. Individual Accident Insurance
This type of policy covers the loss of money of an individual during an accident. It covers damage to body parts, accidental deaths, or other disabilities resulting from an accident.
2. Group accident Insurance
Group personal accident insurance is for large companies where employers get coverage of their employees. You can get a discount on the premium depending upon the size of the group. It is a good advantage for small startups and organisations as it is low cost. It is a basic plan and may offer limited benefits compared to an individual plan.
The tabular form of significant Inclusion and exclusions of Personal accident insurance policy. Knowing significant points that come under a personal accident insurance policy and which does not come under a personal accidental insurance policy while buying a personal accident insurance policy will work in your favour.
| Exclusion | Inclusion |
| Pre-existing injury | Permanent injury |
| Natural death | Death due to accident |
| Suicide or intentional injury | Medical charges |
| Pregnancy | Accidental dismemberment |
| Non-allopathic treatments | Child education support |
| Influence of intoxication | Benefits of life support |
| Being involved in a war or committing a crime. | Broken bones, burns and ambulance |
| Participating in military, air force and sports activities. | Daily allowance |
| Pregnancy and childbirth | Accidental dismemberment |
Why choose Personal accident insurance?
An accident can affect a person's life totally; a minor accident can lead to problems in daily life activities, whereas a significant accident can change your entire way of life. It becomes crucial to buy a personal accident insurance policy in today's time. This type of policy reduces the pain of policy holder's families during the accident and recovery process. A group's accident insurance protects its employees from financial losses during an accident. Compensation is provided in case of an accident while travelling through air, rail, or due to collision, burn, etc.
A personal accident insurance policy provides you with financial support in any accidental environment. Square insurance provides you with various options for choosing the right policy for saving your funds.
Advantages of the personal accident insurance policy.
Can you imagine yourself getting hit by a truck and getting permanently disabled? It is a terrible idea. You cannot recover your loss concerning your body parts, but you can get financial support for giving some relief to your family. Here are some of the advantages of taking a personal accident insurance policy.
1. Family Security
In case of road accidents when you get physically damaged, a personal accident insurance policy protects you financially by giving your amount of cover by which you can quickly pay your hospital bills.
2. No documentation and medical report requirements
For taking a personal accident life insurance, you don't have to give a tedious medical report or go through a lengthy documentation process.
3. Substantial coverage at a lower premium
You can get good coverage at lower premiums through this insurance.
4. Worldwide coverage
Another beauty of a personal accident life insurance policy is its worldwide coverage. You can be at any location on the planet; you will get your coverage in case of accidental damage.
5. Both individual and family plans are available
You can choose individual and group personal accident insurance depending on your requirements.
6. The easy and certified claim process
Getting personal accidental life insurance is straightforward and certified. You get fully trusted paperwork and a trusted contact person on whom you can rely.
7. Support service of 24*7
The firms which provide personal accident insurance provides 24*7 support systems where you can contact and ask for any help. Firms have trained individuals to solve all your queries and doubts on the other side of the call.
8. Legal and funeral expenses are covered
Personal accident insurance covers all the tiny expenses in their terms and conditions list. They cover the expenses of funerals and other significant expenses.
9. Child education benefits
Due to accidents, if you lose the ability to earn or lose your life, the insurance will take care of the education of your Childers. The insurance will cover all the future higher studies up to a specific limit depending upon the cover amount of your insurance plan.
Futures of personal accidental insurance policy
Accidental insurance plans have some of the following secret features. These fixed benefit plans will pay a lump sum benefit when you have a good cover.
- The premiums are very less. The premium paid is allowed as a deduction from the taxable income that you possess under the Section 80D. You can claim a dedication of upto INR 25,000 if your age is below 60 years and up to 50,000 if you are 60 years and above.
- To buy the policy no medical check-ups are required.
- Depending upon your income the insured under the plan.
- Coverage is available only on aume insured basis depending upon the individuals. On a family floater basis you cannot avail coverage.
Determining the sum insured under accident insurance
Depending upon your income the sum insured under accident insurance policies. The coverage is simply the multiple of your annual income and the multiple directly depends upon the insurance company. If you want to cover your sources and childrens, you need to buy individual policies for each of their lives. The coverage for a dependent spouse is limited to upto 50% of your coverage amount. Similarly, for directly dependent childrens coverage would be restricted to 25% of your sum insured. Square insurance provides you multiple choices for selecting your personal accident insurance policy. You can find many personal accident insurance online. If you are having a research mind and want to explore more about insurance policies and find the best choice, you can research on the net and find some of the insurance policies which can fit into your budget.
Difference between accident insurance and life insurance
Accident insurance covers everything from disability during an accident to death. But life insurance covers the death of the policyholder without considering the cause of the death. Some of the most important differences between accidental and life insurance policies are mentioned below.
| Personal accidental insurance policy | Life Insurance |
| A personal life insurance will cover expenses during the damage caused only by accident. | A life insurance covers entire financial costs during the death without considering the cause of death apart from suicide. |
| An accidental insurance policy has a time limit for death cover; it is usually 180 days. | Life insurance policy offers death cover if the person dies after the illness after two or three years |
| A personal accident insurance policy covers loss resulting only due to an accident. | There are different life insurance policy retirement solutions, short term financial goals, death cover, etc. |
| The injury results in partial loss or limb or sight then it will be covered in accidental insurance policy. | Partial disabilities are not covered under a life insurance policy. |
How much does a personal accident insurance policy cost?
The premium varies based on your age and the plan which you have opted for, occupation and in some cases, medical history. However, you can take the insurance with a cover of an amount that is 100 times your monthly income. Square insurance has the best coverage option for you, which you can choose to take maximum advantage of the insurance policy.
How much is accident insurance coverage sufficient?
There is a simple universal rule for buying personal accident insurance: your cover should be 100 times your monthly income. For example, if you earn Rs 20000 per month, you can buy a personal accident cover of Rs 2,000.000. It should cover all the expenditures like child education, loan payment, marriage, and regular earning, and it should have the feature of renewing the policy. The definition of sufficient here is the amount of money which saves you from emptying your bank account during a sudden accident or permanent disability caused by accident. If you are getting sufficient cover of all your expenditures during the accident, hospitalisation and in cases of death, then you are at a good place to be metally free from your financial expenditures. You can check personal accident insurance online, and calculate the coverage which you get to cover all your expenditures during the sudden accident and loss of life.
What are the documents required for claiming your accident insurance cover?
These are the things which you need to have to claim the cover of your accidental insurance cover:
- Death certificate
- Post-mortem report
- Medical certificate
- FIR report
- Medicine bills
As a precaution, family members can keep in mind that these details come for future reference for the family members.
Additional benefits of Personal Accident Insurance Policy
Various other benefits come along with an accident insurance policy. Some insurers provide these benefits in the basic plan, or you can also buy them as an add-on cover by paying an extra premium.
1. Ambulance Expenses
For ambulance charges, compensation is there to carry the insurer to the hospital after the accident.
2. Hospital Daily Cash
Daily cash allowance to a limit is allowed to the insurance policyholder in hospitalisation due to an accident.
3. Transportation of Mortal Remains
Compensation for the expenses incurred on the religious ceremonies related to cremation. In the case of accidental death of the policyholder, the nominee gets all the cover money by submitting some of the crucial documents, they get paid for everything starting from the transportation charges to the final death ceremony.
4. Broken bones
In case of bone damage, some amount of fix compensation is payable under the circumstances of the policy.
5. Burns
For accidental burns compensation is provided.
6. Education advantage
In certain cases due to the unexpected demise of the policyholder, the cost of education of the dependent child comes under the terms of the policy. Their higher studies including all the educational plus transportational charges are included under the insurance policy.
7. Loan Protector
In case of sudden demise or unexpected injury or lifelong disability, a lump sum amount of money is given to the family of the policyholder depending upon the terms and conditions of the policy.
8. Family transportation allowance
When the hospital is too far from the policyholder's residence then all the transportation charges come under the insurance policy. To reach the insurance policy holder on time and take care of him and get in touch with him their family need to travel frequently to the hospital, all the charges come under the accidental policy.
9. Adaptation allowance
This offer may be given by some insurers. In case of permanent total disability.
Tax benefits under a Personal Accident insurance policy.
Any tax benefit is not provided for the premium paid for a personal accident insurance plan which offers protection against any physical disability under the section 80D of the Income Tax Act 1961. And these tax benefits are not needed in actuality because the primary idea of buying accidental life insurance is not tax benefits but to be safe and save your bank account from emptying during any accident. A personal accident insurance policy is made for covering your expenditures during a sudden accident or loss of life.
How can personal accident insurance cover help?
Just imagine how your family will manage in case of any permanent disability of the primary earner in the house. An insurance is an assurance that in case of any disability or in case of any permanent body damage situation you can get the benefit of some financial amount to be mentally free. We, at square insurance provides you with a range of personal accident insurance plans which you can easily afford and save yourself from a mini attack of during an emergency situation.
A personal accident insurance policy offers coverage against injuries caused by accident and death on the other hand such plans will never cover natural death and death resulting due to personal fighting. Using a personal accident policy premium calculator you can calculate the premium and cover that the policy holder will get during the sudden accident or disability. You need to be very specific regarding some of the things when it comes to buying an insurance policy. You should have a good risk to reward ratio, you should get a good return for the investment you put in a certain policy. You can be at a good place after being free from the financial losses if you buy a good personal accident insurance policy.
