Benefits of Personal Accident Insurance

Understanding Personal Accident Insurance

Personal Accident (PA) Insurance is a type of health insurance policy that provides financial protection in case of accidents that lead to injury, disability, or death. Unlike standard health insurance, which primarily covers hospitalization and medical expenses for illnesses, it focuses exclusively on accidents.

One can make a claim for personal accident insurance if they are victims of any kind of accident such as falling down the stairs, breaking a hand or leg while playing sports, or being in a road accident. Most health insurers in India offer personal accident coverage as an add-on benefit.

Coverage Under Personal Accident Insurance

The personal accident insurance policy provide coverage for the following:

1. Accidental Death

   In case of death due to an accident, health insurance companies in India pay the sum insured amount to the family of the policyholder. In such cases, the nominee gets 100% of the total sum insured as per the terms & conditions of the policy.

2. Permanent Partial Disability

   A permanent partial disablement is an injury that results in the loss of speech, eyesight, feet or hands. The policyholder receives a specific percentage of the sum insured (up to 100%) for a certain period of time or as a one-time lump sum payment.

3. Permanent Total Disability

   A permanent total disablement is an injury which prevents the policyholder from going back to his normal duties for a continuous time frame of over 12 months with no hope of improvement. In such a situation, the nominee is entitled to make a claim for the total sum insured.

4. Temporary Total Disability

   Temporary total disablement is when policyholders are bedridden and unable to carry out their normal work and other duties for some time. Insurers generally provide a daily or weekly benefit in such cases to compensate for loss of income. The compensation is determined on the basis of the nature of the impairment.

What are the Benefits of Personal Accident Insurance?

Check out the benefits of buying a personal accident insurance:

1. Financial Help for Accidental Injuries

   If you get hurt in an accident and need medical treatment, personal accident insurance can help pay for your hospital bills, medicines, and even surgeries. This takes away the financial burden and lets you focus on healing.

2. Disability Benefit

   Accidents can sometimes lead to partial or permanent disabilities that make it hard to work or live as before. A personal accident insurance policy provides compensation for partial or permanent disabilities that may affect your ability to work or earn a living. On the other hand, lump sum payments may be offered for total permanent disability.

3. Financial Security for Family

   If an accident leads to death, the PA insurance provides a fixed amount of money to your family. This ensures that your loved ones are financially secure and can manage their expenses even in your absence.

4. Help During Temporary Income Loss

   If you cannot work for a while because of an accident, some personal accident policies provide a weekly or monthly payment to cover your basic expenses. This helps you manage your day-to-day needs until you recover and return to work.

5. No Waiting Period

   Unlike many health plans, personal accident insurance typically has no waiting period. This means you are covered for accidents from the moment the policy starts, ensuring immediate protection for accidents.

6. No Medical Tests Required

   Unlike other health insurance policies, you usually do not need to undergo a medical check-up to get personal accident insurance. This makes it quick and easy to purchase.

7. Provides a Daily Cash Benefit

   If you are hospitalised due to an accident, some PA policies provide a daily cash allowance. This can be used for additional expenses such as food, transportation, or attending to your family’s needs during your recovery.

8. Offers Cumulative Bonus

   With personal accident insurance, you can enjoy the benefit of cumulative bonus. This means that if you do not file any claims during the policy year, insurer might reward you with a cumulative bonus, which increases the coverage amount without raising the premium.

9. Low-cost Premiums

   This type of insurance policy is relatively inexpensive in comparison to full-fledged mediclaim insurance policies. This signifies that you get significant financial protection against accidents at a low cost.

10. Worldwide Coverage

    Many personal accident policies offer worldwide coverage which means that you are protected whether you are at in India or abroad. It gives you peace of mind no matter where you are.

11. Tax Benefits

    The premiums you pay for personal accident insurance may qualify for tax deductions under Section 80D of the Income Tax Act, 1961. This reduces your taxable income, providing you additional savings.