A personal accident insurance acts a source of income when you can’t work because of an accident
Nearly 1,50,000 people lose their lives in road accidents in India every year and the country accounts for 10% of the global road crash casualties. With such a high number of fatalities, it is essential for you to opt for a personal accident insurance to safeguard your future and finances while travelling on Indian roads. Read on to know how this insurance comes to your rescue in case of an unforeseen situation.
Protecting Your Finances from Drying Up
An accident, major or minor, can leave you disabled temporarily or permanently. It can severely impair your earning abilities and jeopardise your short and long-term financial goals. A personal accident insurance protects your finances from drying up by acting as an income replacement. Based on the policy chosen and the impact of the mishap, the pay-outs vary.
These pay-outs at distinct intervals not only help you take care of the day-to-day expenses of your family but ensure your liabilities are met with ease. In case of a temporary disability, the pay-outs act as a secondary source of income, until the time you regain your complete fitness and are ready for work.
A Comprehensive Coverage
A personal accident insurance pays 100% of the sum insured in case of death or total permanent disability. In case of a temporary disability, the pay-out is a certain percentage of the sum insured. This percentage varies across the disability suffered by various organs.
Such a policy also gives you the provision for a comprehensive coverage by incorporating hospitalization and ambulance expenses arising due to an accident. These can be availed by paying a nominal extra premium.
Be Aware of the Exclusions
While a personal accident insurance protects your finances from taking a hit in case of a mishap, it is essential to be aware of the exclusions of such a policy. In most cases, such an insurance policy doesn’t cover a pre-existing disability, self-inflicted injuries, attempted suicide and suicide among others.
Also, accidents under influence of drugs and alcohol aren’t covered. Hence, it is essential to read the fine print to know the exclusions of this policy.
Personal Accident Insurance – A Must for All
An important component of financial health, a personal accident insurance is equally important as a life and health insurance policy. The possibilities of an accident can’t be ruled out and therefore it’s essential for everybody to have a personal accident insurance. Just like other policies, you can purchase a personal accident insurance online after comparing the offerings of multiple insurers.
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