You are driving down the road, listening to music and admiring the scenery, when a careless driver shifts into your lane, causing a terrible accident. You suffer severe injuries that necessitate costly medical treatment, and you are unable to work for weeks or even months. The accident's financial burden begins to weigh on you, causing stress and anxiety. This is where personal accident insurance can come in handy. Let’s talk about what is personal accident insurance policy and why you need it.
Personal Accident Insurance Policy
Personal accident insurance provides financial compensation to an individual or his/her family in the event of an accident that results in disability, injury, or even death. The policy aims to protect against the financial burden of unexpected medical expenses, loss of income, and other costs that may arise due to an accident.
For example, let’s say that Mr X, a 35-year-old man, works as a construction worker. One day while working at the construction site, he falls from a high altitude and suffers severe injuries, which leads to his hospitalisation for several weeks. In this case, if Mr X has a personal accident insurance policy, he will be eligible for a payout from his insurer.
A personal accident insurance policy offers a lump sum payment, which can be used by the policyholder, Mr X, for various purposes, such as paying for medical treatment costs, covering post-hospitalisation expenses related to recovery, or as a supplement for any loss of income due to the accident. The payout is not conditional to the actual medical treatment bill paid.
Typically, health and motor insurance providers offer personal accident coverage. Additionally, the IRDAI, or the Insurance Regulatory and Development Authority of India, has made it mandatory for all motorists to have personal accident coverage in their two or four-wheeler insurance policies. Under the IRDAI guidelines, insurers must provide this policy or rider with a minimum coverage amount of Rs 15,00,000.
Benefits of Personal Accident Insurance Policy
Personal accident insurance policy provides financial protection to individuals and families in case of an accident, and here are some key benefits.
• Easy claim process:
The claim process for a personal accident insurance policy is straightforward and hassle-free. Most insurance companies offer 24/7 customer support and fast claim settlements, ensuring you receive your payout when you need it the most.
• Affordable premiums:
Personal accident insurance policies come with affordable premiums that make them accessible to everyone.
• Comprehensive coverage:
Such policies offer comprehensive coverage against a wide range of accidents, including road accidents, accidents at work, and mishaps at home. They also cover accidental death and disability, ensuring you and your family remain protected in a worst-case scenario.
• Financial support:
In case of an accident, a personal accident insurance policy offers a lump sum payout that can help cover various expenses. This includes rehabilitation costs, medical bills, and loss of income due to permanent or temporary disability. This financial support can help you concentrate on your recovery instead of worrying about financial woes.
• Worldwide coverage:
These policies offer worldwide coverage, meaning that policyholders are protected regardless of their location.