Why you should consider buying a personal accident cover

Truly said, life is totally unpredictable! In fact, life actually happens when you expect the least. And so is with accidents. What if you meet with an accident and attain some serious injuries? Scary, isn’t it? Not many would know that India is the accident capital of the world and the number of vehicles hitting the road and the number of accidents happening each year remain constantly alarming. As per a recent report, over 150,000 people are killed every year in just road accidents, considerably higher than many developed auto markets including the U.S.

Roads are just an example. No matter you are at work at a construction site, taking a walk along the footpath, working in an office or playing at home with your kids, the potential for accidents is always there. And with such frightening scenarios surrounding you, it is best to get yourself covered under a Personal Accident (PA) Cover. A PA plan remains one of the most important pillars of financial security, deserving of significant consideration by every individual.

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Personal accident cover: Taking care of you everywhere
Nothing can be better than surviving an accident without even a small scratch but not everyone is that lucky. While some accidents might cause permanent or partial disability, some may even lead to death. Both these scenarios have substantial impact on the financial well-being of the dependents. In order to ensure that you and your family stay protected, the best thing to do is get a personal accident (PA) cover.

In case of a serious injury or death due to an accident, PA cover provides maximum financial assistance. Moreover, apart from providing coverage against disability and death, many PA covers are well integrated to provide financial support to the insured. This is because in many cases, the earning capacity of the individual may completely or partially decrease post an accident.

Need for PA cover
PA cover apart from providing a monetary value to your life even helps to compensate for the inevitable financial consequences that accompany a serious accident. Strategically, it plays a great part in helping the dependents to cover the costs of final expenses, outstanding debts and lost income. PA cover aims at providing valuable peace of mind for the policyholder.

The cover caters to the needs that are unmet by life and health insurances. Industry experts even go so far as to say PA cover is vital for most. However, despite its nearly universal applicability, PA cover continues to remain surrounded with a great deal of confusion. Perhaps this may be due to PA cover’s complexity or merely our choice to avoid the topic of our own demise. But the fact is, with proper information, you can easily arrive at the right choice for both, you and your family!

In India, PA covers are among the cheapest insurance plans available as for a few hundred rupees spent each year, you get assured for a sum of several lakh rupees. In addition, unlike any other insurance cover, the premium of a PA is not determined by the age of the policyholder rather it depends on the nature of job. For instance, the low-risk jobs like IT and software lead to lower premiums than jobs that include greater risk like mountaineering or underground mining.

Pay-out process
The total pay-out for each policyholder completely depends upon the total sum assured and the impact of the accident. While accidents involving death or permanent total disablement call for a 100 percent pay-out, accidents involving permanent partial disablement are paid on a pro rata basis. And yes, in regards to total temporary disablement, the terms may vary from one insurer to another. Before buying a PA cover, it is best advised to read the term and conditions of the policy to better understand the pay-out plan.

Choosing the right plan
It is important for you to choose the right level of PA cover to protect you and your family’s financial future. You may consider purchasing a customised PA cover to avail extensive coverage. It is advised to compare plans online between the insurance providers to find the best one for all your needs and requirements.

The following is a comparative table of five leading insurance companies providing personal accident cover of Rs 10 lakh sum assured for a 30-year-old man.

The writer is head product and innovation at Policybazaar.com

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