A checklist that assists you in making the right choice:
With an alarming number of accidents occurring each day, personal accident insurance is an increasing necessity. But, as the old saying goes, "Half knowledge is dangerous"! Buying a policy without studying the details is equivalent to having no insurance at all.
For instance, a Delhi-based policyholder was involved in an unfortunate car accident that cost him his index finger. Although the hospital certified him with 15% disability, the insurer refused to pay the claim because his policy covered only total disability.
Total disability in policy terms means complete physical separation of limbs above the wrist or ankle. Here, the policyholder could have received claim if he had identified the loophole in the policy, and opted for one covering partial dismemberment.
Therefore, before taking a personal accident cover, check the policy for the following points to avoid any unpleasant surprises during claim.
Coverage
Make sure the policy covers a wide range of accidents at home and workplace. It should include all the daily activities that may lead to an accident such road accidents, rail accidents, terrorist attacks, and natural disaster.
Further, read the glossary of the policy document carefully to understand which clauses are covered and the terms and conditions behind them. For example, in many accident insurance policies hospitalization expenses can be claimed if the insured is admitted within seven days of the accident, and stays a minimum of twenty-four hours as an inpatient.
Premiums
The value of premiums is calculated based on sum insured, policy duration, and add-ons. Assessing your current income, future potential income, and extent of liability, you can determine the sum insured.
Companies even offer customers optimizing an insurance plan and premiums to suit their budget needs. In addition, one can even opt for additional riders to include more risks to be covered in the policy.
Benefits
A good accident insurance policy must include family benefits, daily allowance during hospitalization and child education support in case of an accident. Look out for other benefits that suit your requirements and budget needs.
Exclusions
Familiarize yourself with the exclusions and limitations for which the insurer is not liable under the policy. Some of the major exclusions that accident insurance does not cover are death, injury, illness, or disablement due to:
- Deliberate self-injury
- Suicide or attempted suicide
- Influence of intoxicating substances such as liquor or drugs
- Participation in adventure sports
- Mental or nervous disorders
- Venereal diseases
- War, nuclear perils, childbirth or pregnancy
Insurer
Nowadays, insurance companies offer a wide range of customizable accident insurance policies. You can choose an insurance provider with an impeccable track record by checking their:
- Claim settlement ratio
- Feedback response
- Customer support
- Quality rating
- Premium cost-effectiveness with respect to other companies
Better Safe than Sorry
It is never too late to opt for accident insurance even if you have a life insurance policy. It covers a gaping hole of the life insurance by offering additional coverage in case of disability. Further, no matter what the magnitude of accident, you and your family can return to the same financial condition prior to the loss. Thus, before an accident makes a huge dent in your savings, Personal Accident Insurance to make a well-informed decision.