Road accidents are a significant concern, and the rate of such incidents is increasing in India. Personal accident (PA) insurance comes in handy in handling immediate treatment costs incurred due to any mishaps. Accident insurance, being a specific insurance policy, compensates for the financial burden arising due to the policyholder's disability or death. This insurance has a wider accidental claim coverage, which is not included in the general health insurance plan.
How Much PA Cover Should You Have?
Are you confused about “how much personal accident insurance do I need”?
The Insurance Regulatory and Development Authority of India (IRDA) has set the minimum limit for personal accident coverage of up to INR 15 lakh. Insurers must offer this coverage on motor insurance policies.
In addition to this mandatory cover offered by motor insurance companies, buying a separate personal accident insurance policy is highly advisable to secure your life.
A strong financial backup in the form of a PA insurance policy is a vital asset during emergencies. It ensures you’re financially prepared for any accidental contingencies. You can avail yourself of the best healthcare services to recover as soon as possible without worrying about money management.
Accidents often drain your savings as medical expenses are costly. Having a personal accident insurance policy means that you can come back to normal life after the mishap as soon as possible without breaking your savings.
One can have personal accident insurance, depending on their age, medical health, and occupation. It is recommended to buy the plan as soon as you start earning. Financial advisors recommend having personal accident insurance of up to 10 times your annual income if you are the soul friend of the family or drive on the highway often. Also, if you are involved in superintending operations, like contractors, engineers, or builders, PA insurance is a must-have.
What are the Pros of Opting for Personal Accident Insurance?
The intangible benefits of a personal accident insurance policy are peace of mind, financial security, and preparedness for any emergency. This policy ensures that your loved ones don’t have to face financial burdens during critical times of an accident.
- This policy has an easy and simple claim settlement process, which is available 24/7. When admitted to the hospital, insureds or their families can seek quick resolution from the insurance company.
- By paying an add-on premium to the insurance, the unnamed passengers, other than the policyholder, are also entitled to compensation from the insurer.
- Additionally, employees like paid drivers, cleaners, or conductors are also eligible for compensation under accident insurance. However, an additional annual premium must be paid to ensure the compensation is similar to that of the policyholder.
Conclusion
Besides having a health insurance plan, investing in personal accident insurance provides extensive coverage to meet treatment costs if the policyholder meets an accident. This covers accidental death, permanent disability, and partial permanent disability. The premium of this policy may vary, depending upon the choice of the insurance company, the policy cover chosen, and the sum insured.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.