India has a high rate of accidents, which can result in huge financial expenses for the victim and his/her family. With the rising number of accidents on Indian roads and workplaces, it has become essential for individuals to have personal accident insurance. Let us start with getting into knowing what personal accident insurance meaning is.
Personal accident insurance provides monetary compensation in case an accident results in injury, disability, or death of a policyholder. This type of insurance can help individuals and their families cope with the financial impact of an accident and its aftermath.
Scroll down to learn in detail about personal accident policy.
What is Personal Accident Insurance?
These policies provide financial assistance against an accident resulting in injury, temporary or permanent disability, or even the demise of a policyholder. A personal accident insurance policy covers the insured person against accidents that occur while he or she is travelling, working, or participating in any other activities.
It is also important to know the features of the coverage that such plans offer. Some of the prime features of a personal accident insurance policy include coverage for medical expenses, accidental death, as well as permanent/temporary disability. Medical expenses coverage provides reimbursement for expenditures incurred as a result of an accident.
Personal injury protection insurance provides a lump sum payment to the nominee in the event of the insured person’s accidental death or permanent disability resulting from an accident. Temporary disability coverage provides a weekly or monthly benefit to the policyholder.
Benefits of Personal Accident Insurance
Understanding personal accident policy also requires being aware of the benefits it offers. The policy provides financial security to the insured person and his or her family from the adverse consequences that an accident can lead to. It offers much-needed peace of mind to the insured person and his/her family, knowing they will receive coverage against the financial impact of an accident.
Also, personal accident insurance policies are affordable, and the premium rates are reasonable. You can customise such plans based on your particular requirements. As per the Income Tax Act, a policyholder can avail of tax deductions for the premium paid towards a personal accident insurance policy under Section 80D.
Personal accident insurance policies do not require a medical examination for the policyholder to purchase the policy. One can also buy add-on covers, such as accidental hospitalisation rider, accidental death and dismemberment rider, etc., which provide additional coverage to the insured person.
Advantages of Buying Personal Accident Insurance
A personal accident policy provides a financial cushion to the insured and his/her family against accidents. The policy provides several benefits, such as financial security, peace of mind, affordability, customisation, tax benefits, worldwide coverage, and additional riders. Every individual should consider purchasing a personal accident insurance policy to ensure financial protection against accidents.
Apart from having a clear understanding of what is a personal accident policy, you must consider some factors before buying one. You must choose the coverage amount of a personal accident policy based on your particular needs and financial capabilities. It is essential to thoroughly read and identify the exclusions stated in the policy document. Some personal accident policies may have a waiting period before the insurance plan becomes effective. The waiting period may range from a few days to some weeks. Now that you have sufficient details about personal accident policy do a quick search and buy personal accident insurance at the earliest.