Due to low commissions, insurance service providers generally do not promote personal accident covers. Agents focus more on insurance products with high commissions. Nevertheless, personal accident coverage might be the missing ingredient in finance portfolio. Nowadays, insurance market is more dominated by health and life insurance plans and personal accident cover is comparatively unknown.
In case the insured person has passed away or sustained some major injuries because of an accident, then this coverage comes into play. Just like other insurance plans, the insured person is necessary to pay certain amount of premium based on coverage and the plan will pay out when the covered event occurs.
This cover is important even if person has purchased a term insurance and a mediclaim policy. In case person died in a fatal road accident, then his term insurance would possibly pay enough, but what if this accident left him partially or completely disabled? The latter situation could lead in temporary or permanent job loss.
Savings might tide the family for some time, but definitely it would not be enough. This cover pays for accidental death and also pays out in case of partial or permanent disablement.
Personal accident insurance is like a safeguard against loss of income following an accident. Person can get several lakh rupees of sum assured just for a few hundred rupees a year. Unlike other insurance plans, the premium amount is not calculated by the policyholder’s age. Premium depends on the type of occupation customers hold. It clearly means low-risk occupations such as software engineering or banking lead to lower premiums as compared to high-risk occupations such as mountaineering or underground mining.
The payout based on the accident impact like permanent total disablement or death leads in a 100 percent payout. The terms related to total temporary disablement differ from one insurance company to other. Some insurers pay a certain percentage of entire sum assured, others pay complete amount and few may have a cap on the payout money.
Do not forget to check out exclusions because some insurance products may not give cover against partial disablement, leaving policyholder with no financial fallback in this condition. Buy online personal accident insurance or contact insurance service provider to club this coverage with another term or health insurance.
Auto owner’s car insurance or employer’s group insurance might already provide this coverage. Policyholder could extend any of these just by paying extra premium. Buyers should know that accidents because of suicide attempts, self-inflicted injuries and driving under the influence are not included in a policy.