Read on to clear all your doubts regarding personal accident insurance
All of us face the risk of death or injury due to an accident. It’s financially prudent to buy personal accident insurance policy so that if you meet with an accident, you and your family is protected from distress. We hereby provide answers to frequently asked questions about personal accident insurance.
What is personal accident insurance?
Personal accident insurance is an insurance policy which provides compensation to the insured or his/her nominees in the event of injuries, disability, or death due to an accident. As the dictionary meaning suggests, an accident should be an unexpected and unintentional event caused by external, visible, and violent means, resulting in the death of or injury to the insured.
What if the insured is seriously injured in an accident and requires hospitalisation?
The insured, at the time of purchasing personal accident insurance policy, can opt for an add-on cover for expenses on hospitalisation due to an accident. The hospitalisation expenses will then be paid in addition to any benefit that becomes payable because of the accident.
Will the insurance company pay the entire amount of sum insured on the insured meeting with an accident?
The insurance company will pay the entire sum insured on either of the two counts. First, if the insured dies due to an accident, and second, if the insured suffers permanent total disability due to an accident.
What are permanent total disability events?
The permanent total disability events include loss of both eyes, loss of both hands, loss of both feet, and loss of one hand and one foot. If the injury suffered disables the insured from engaging in any employment or occupation of any description whatsoever, then such an event too is considered as permanent total disability. The insured gets the full sum insured on suffering permanent total disability.
How much compensation the insurance company pays if there is no permanent total disability?
If the insured is injured and recovers after domiciliary treatment or after hospitalisation, then the insurance company will just pay the hospitalisation expenses as per the conditions of the add-on cover. The insured will receive no other compensation.
What are the partial disability events and how much will be the compensation in such situations?
Some of the partial disability events listed in the personal accident insurance policy are: loss of one hand, loss of one leg, loss of one eye, and loss of both ears. If the insured suffers any of these events, the insurance company will pay 50% of the sum insured as compensation. The compensation varies depending on the kind of disability. The compensation is 40% of the sum insured, if the insured loses four fingers and thumb of one hand, 35% on loss of four fingers, 20% on loss of toes, and so on.
The insured is hospitalised after meeting with an accident. He is declared to have suffered total permanent disability or dies a month or so later. Would the insurance company still pay the sum insured as compensation?
The total permanent disability or death due to an accident should occur within 12 months from the date of accident for being eligible for receiving the full sum insured as compensation under the policy.
Personal accident insurance is a protection every individual must have and is not replaceable by life insurance or health insurance. Both life insurance and health insurance do not compensate you for permanent total or partial disability.
Related Article:
What is Group Personal Accident Cover?
What Do You Look For When You Compare Personal Accident Policies?