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Insurance Article

How to Evaluate and Compare Accident Insurance Policies

July 03 2015

Read the following points before zeroing-in on an Accident Insurance policy

insurance cover can be plannedAccidents might be unavoidable, but insurance cover can be planned

Weighing the pros and cons before making a long-term financial commitment is always a good idea. One such decision is to invest in an accident insurance policy.

Why Accident Insurance

Human life is full of uncertainties. Besides being emotionally draining, an accidental death of a loved one also has a direct bearing on the family's finances. A permanent disability caused by accident can deprive a person from earning a livelihood.

What is Accident Insurance Policy

Accident insurance policy is a type of health insurance policy that secures your finances from losses arising out of accidental death or permanent total disablement caused by an accident. Such a policy enables you to safeguard your family members from financial uncertainties arising from a mishap.

What factors to Consider While Buying Accident Insurance

Various insurers offer accident insurance policies. In order to choose the right policy for you, consider the following factors:

  • Risks Covered
    Understanding the insured risks is important while buying an accident insurance policy. You might consider the following questions before purchasing. What are the risks covered by the plan you opt for? Are these risks applicable to you or your family? Uncertainties that are not covered by the policy, are these insurable under an add-on cover?
  • Affordability
    The premium for an accident insurance policy is based on the policy duration and the sum assured. As per your budget, you can choose the term of the policy and opt for a suitable sum insured. You may also avail discounts by choosing a policy for a longer term than the minimum one-year duration. As your affordability and the scope of risks changes, you may want to revise your sum insured. Make sure you ask the right questions to know policy details.

  • Claim Settlement ratio
    Choose a company with a healthy claim-settlement ratio. Anything above 95% is considered a healthy ratio. Many factors affect the claim-settlement ratio of a company, such as cases of claims that are repudiated due to many reasons. You may find out about the company's performance through reviews and survey statistics.

  • Ease of claim settlement and various channels for claim settlement
    According to the Insurance Laws (Amendment) Bill, 2015, insurers will not be able to challenge a policy, on any ground, after three years of the claim.
    Claims can be settled over the telephone or by intimating the company in writing. Your company must guide you through the procedure of claim settlement. Know of the maximum duration for settlement of a claim. There may be exceptions in certain cases; enquire about these exceptions.

  • Redressal mechanism

    You must also know of the various channels at your disposal in case of any grievances. Insurance Regulation and Development Authority of India, IRDAI, is the insurance regulator in the country and all grievances can be routed to it.

The buyer is responsible for the contract he signs. He must be vigilant about the policy before signing the documents, during the policy term, and at the time of claims as well.

One such accident insurance policy is the Personal Protect insurance. This can provide a beneficial cover for a wide range of accident related losses. To find out more on what this personal accident insurance covers

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