Whenever or wherever an accident happens, the bottom line
is still the dame - you face potential financial disaster. The only difference that
geography may make is the cost. In some places, medical and emergency transportation
costs are unbelievably high. Thus, the solution is to buy a good personal accident
policy. These policies are relatively inexpensive and can provide a great deal of
What is Personal Accident?
Personal accident policy is an insurance that covers for one
or more of four contingencies in the event of an accident: death, permanent total
disability, permanent partial disability and temporary total disability.
Why go for Personal Accident?
You are probably leaving yourself extremely vulnerable to
a fate that is, in some ways, worse than death if you are ignoring the risks that
accidents bring in even if you have life and health insurance covers.
- Accident might tender you with temporary or permanent disablement
- Impair the ability to earn a livelihood
- Provides for income replacement in case of temporary partial disablement that can
go up to 2 years.
How to buy Personal Accident?
The premium on personal insurance plans is priced based on the individual’s profession
- Buying term plans online is a cheaper option
- Add this plan to the householder’s insurance or motor insurance to avail further
This policy is suitable to everyone. However, what stands out is the simplicity
of this policy and ease of understanding.
- When starting out in life
- When professional risks can lead to accidents
- If work involves a lot of travel
Premium saving tips
- Buy only as much as you deem fit, the premiums being so low should not lure to buy
cover under this policy for astronomical sum assured.
- In case you are taking a householder's insurance policy - add the personal accident
cover to that policy, you would be entitled for a rebate - reducing your premium
- Add is as rider to your life insurance plan to save on premiums
Did you know ?
The premiums remain same till age 70 (the max at which one
can buy it). It can also be extended to cover medical expenses arising out of accident
with conditions based on the sum insured.
All about disability
Disability is viewed differently across insurers, but the
three forms of disability from an accident are as follows:
Permanent total disability:
Defined as permanent loss of use of any two limbs, or permanent
and complete loss of sight in both eyes or injuries that render the insured incapable
of earning an income from the date of the accident onwards from any work, occupation
or profession (commensurate with his educational qualifications, training and experience).
Permanent partial disability:
Defined as permanent loss of any body part, one eye, one
limb or one finger or a toe or injuries that render the insured incapable of earning
an income. While the loss may be permanent, its effects on the insured and on his
life are partial.
Temporary total disability:
Defined as temporary loss of in any form that may render
a person immobile or affect his earning capacity from the time of the accident.
In other words, a fracture in the arm or leg that keeps you from work qualifies:
you may be mobile but the injury may not support your ability to work.