Yes, personal accident (PA) insurance is essential for everyone. Based on the 2002 India Motor Tariff, all vehicle owners must have a personal accident cover. This act applies whether you choose third-party liability coverage or a comprehensive policy for your car. Failure to own a PA cover might result in a penalty under the Motor Vehicles Act.
The insurance policy ensures that you get compensated despite who’s at fault during an accident. It helps ease the financial burden of additional expenses that may come following an accident. More so, this cover comes in handy in case you lose your income due to a serious accident that may hinder you from going to work. Please note that you can also decide between co insurance and co payment.
Keep reading for answers to important questions such as: why should you buy personal accident insurance? Who should opt for personal accident insurance? Is Personal Accident Cover Mandatory for Owner-Drivers?
Why You Should Buy Personal Accident Insurance
Personal accident insurance comes in to offer financial coverage to a policyholder in the case of an accident that leads to injury, disability, or death. Here are particular reasons why you need the PA cover:
- Financial Security- in case an accident causes temporary or permanent disability, the policy will offer you a lump sum amount to secure your medical expenses, possible loss of income, and any additional costs.
- Wide Coverage- Personal accident insurance offers wide-ranging coverage for accidents like road tragedies, falls, burns, or any other incident that results in injuries or disabilities.
- Flexible Choices- Personal accident premium cover comes with flexible choices. This makes them accessible to everyone. For instance, you can discuss the difference between copay and coinsurance with your service provider and see what works best for you.
- No Need for Medical Exam- Most personal accident insurance covers don’t ask for prior medical examinations. As a result, it’s easier to obtain your coverage, giving you the peace of mind you need whenever you get on the roads.
Note: The scope of your PA coverage will depend on the benefit you select. For employees, if your health insurance contains higher copays or deductibles, you can benefit by going for the accident insurance policy.
Who Should Opt for Accidental Insurance?
PA insurance caters to accidents (critical illnesses, temporary and permanent disabilities, deaths, etc.) and can benefit many people. This cover is especially essential to those who are at higher risk of experiencing accidents. Thus, the groups of people who should primarily opt for accident insurance include the following:
- People working in high-risk jobs such as miners, construction workers, oil and gas drilling and extraction workers.
- Individuals working in hazardous surroundings where they’re more prone to accidents. You can check out some common workplace safety hazards.
- Athletes and sports lovers who engage in high-risk sports activities, including motor races, martial arts, and other extreme sports.
- Those involved in frequent outdoor activities like adventure sports, hiking, and camping.
- Elderly persons who could be more vulnerable to accidents mainly due to old-age factors such as poor reflexes and decreased mobility.
- Individuals with pre-existing medical conditions that increase their chances for accidents.
- Students who are more exposed to risk factors such as sports injuries, commuting accidents, and more.
- Self-employed entrepreneurs who may need more benefits and safety coverage offered to employed individuals.
Is Personal Accident Cover Mandatory for Owner-Drivers?
Yes, personal accident cover is mandatory for owner-drivers. The cover forms a compulsory part of every car insurance policy, both for the comprehensive and the third-party liability policies. The compulsory PA cover comes as an add-on to offer the owner-driver of the insured motor vehicle protection from any accidental injuries. Therefore, a comprehensive or 3rd party liability insurance policyholder can obtain the coverage by only paying an extra cost in the premium.
Based on the IRDA mandate, you can choose to buy a personal accident insurance policy for any vehicle type, including private cars, two wheelers, taxis, or commercial vehicles such as buses, vans, trucks, etc. Note that there’s also a difference between copay and coinsurance. You can discuss this with your service provider to see what works for you. The copay and coinsurance difference is that copayment is a fixed cost that you, the insurance policyholder, will pay for a particular service covered by your provider. On the other hand, coinsurance involves payment for a percentage of the total cost of a service.
Conclusion
Personal accident insurance is essential for everyone. The cover offers financial security for policyholders who undergo serious injuries or even death resulting from an accident. This type of insurance coverage is necessary since it provides compensation regardless of who’s at fault in the accident. While some people tend to be at higher risk, accidents can occur to anyone. Thus, it’s crucial to have maximum financial protection to cater for unexpected accident expenses.
For maximum benefit, ensure that the policy coverage contains all the significant activities that could cause accidents either at home or at the workplace. In short, it should offer you a wide range of coverage. It helps to pay close attention to the claim settlement record of the insurance service provider from which you wish to buy your policy.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.