All About Accident Insurance Plan
Accidents are really uncertain and unfortunate events that can happen with anyone, anytime and anywhere.
According to WHO, at least 1 out of 10 people killed on roads across the world is from India.
Accidents can severely impact one’s life and that of their families behind. The impact can be temporary or permanent or even deathly depending upon how serious the fatality was.
This is where the role of Personal Accident Insurance Plans comes in!
What is it for?
Personal Accident Insurance plans and policies cover the financial risk against uncertainties of accidents. It provides coverage in case of accidental deaths, partial or total disabilities that may be temporary or permanent and accidental injuries.
It also provides 100% compensation to the nominee of the policyholder in case of his/her accidental death.
Compensation is also provided in case of disabilities like loss of limbs, eyes and speech.
Coverage scope
The following coverage benefits are available under accidental insurance plan -
- Accidental death cover - Accidents can be really fatal sometimes. They are both financially and emotionally draining for the dependent family members. In an accidental death case, the nominee is given full sum assured as compensation, as per the policy clause.
- Permanent total disability cover - If an accident results in permanent total disability such as loss of both limbs, paralysis, etc. then a specified amount (even 100% of sum insured) is paid to the policyholder.
- Permanent partial disability cover - If a fatality results in permanent partial disability such as loss of one limb, hearing loss, etc. but is still able to function, then a certain specified amount is paid to the policyholder.
- Temporary total disability cover - In case an accident causes temporary total disability to a person further causing him/her to be bedridden - the cover allows weekly allowance to compensate for the loss of income.
Additionally, accidental plans may also provide daily hospital cash for the days a person is hospitalized, cover ambulance charges and other medical expenses incurred due to the accident.
Accidents caused via rail, road, drowning, air, burns, etc. are covered.
Some facts and stats about accidents in India
Over speeding, careless driving or negligence in driving are the major reasons resulting in accidents.
You’ll be shocked to know the numbers!
- According to WHO, at least 1 out of 10 people killed on roads across the world is from India.
- India accounts for a mere 3% of world’s vehicular population, but a shocking 12% of world’s road fatalities are reported in India.
- As per Ministry of Road Transport and Highways of India - during the year 2021, a total number of 4,12,432 road accidents have been reported in the country, claiming 1,53,972 lives and causing injuries to 3,84,448 persons. Unfortunately, the worst affected age group in road accidents is 18-45 years (accounted for majority of the Indian workforce), which accounts for about 67% of total accidental deaths.
- According to the National Crime Records Bureau, an average of 426 accidental deaths occur daily and 18 every single hour!
Inclusions and Exclusions
In a usual accident insurance plan, keep in mind the following inclusions and exclusions:
Covered
- Only accidental death
- Disabilities caused due to accident
- Child education support is provided, as mentioned in the policy
- Medical expenses, hospitalization & ambulance charges
- Burns and broken bones
Not Covered
- Natural death
- Pre-existing disabilities and injuries
- There’s no compensation in case of suicide or self-harm
- Accidents under the influence of intoxicants
- Non allopathic treatments
- Accidents because of committing a criminal act or being involved in war activities, suffering from a mental disorder, participating in the naval, military, air force, adventurous or sports activities
Why have the accident insurance plan?
As you already know, accidents are totally uncertain and can impact the victim as well as his/her family. The impact is even worse if the victim is an earning member.
Imagine if the only earning member of a family met with an accident and got bedridden for a month or more. It’s not just the general monthly expenses but also the treatment and hospitalization expenses that are to be paid. Not to forget the burden to pay off EMIs! In such a situation if that person is covered under this plan, he’ll be better off as an adequate compensation will be provided by the insurer.
Thus, having such a plan offers protection & provides family security.
The accident insurance plan can be bought irrespective of your age, occupation and health condition. The premium is generally decided on the basis of occupation rather than age.
Occupational activities have some risks. For the purpose of an accidental insurance plan, these are divided as follows:
- Low risk including doctors, lawyers, bankers, etc.
- High risk including builders, contractors, etc.
- Very high risk including mine workers, mountaineers, etc.
Points to remember
- Unlike a regular health insurance plan, there are no tax benefits on the premium paid for a personal accident insurance plan.
- An accident insurance policy is different from life insurance policy as it covers loss of life or disabilities resulting due to accidental damage whereas a life insurance policy covers the death of a policyholder irrespective of the cause of death.
- It is recommended that you should opt for a plan with a sum insured that is 100 times your monthly income.
- Policyholder must always inform his/her family members of the documents required to claim in case of accidental death, so that any available plan advantage doesn’t go unclaimed. Required documents include death certificate, post-mortem report, FIR report, medical certificate and medical bills.
Already have an accident insurance policy or need help in filing an accident claim? ClaimTherapist is here to assist you always! Reach out to us anytime.