Everything to Know About a Personal Accident Insurance

The incidents that occur in our life are quite uncertain and cannot be accessed well in advance. Getting an insurance plan can help you overcome uncertain situations without digging up a big hole in your pocket. A good insurance plan ensures that the policyholder stays covered against all eventualities. But is just buying health insurance enough? What about the accidents or illness that causes a disability? Do you wonder what will happen to your family in case an accidental death occurs? A life insurance plan does not cover such situations. 

To stay protected from disability caused by an accident, you need to buy personal accident insurance. Here is a detailed guide for your to explore.

What is Personal Accident Insurance?

As the name specifies, personal accident insurance or casualty insurance refers to the insurance plan that offers financial coverage to the insured under uncertain circumstances, such as accidents causing bodily injury, permanent partial or total disability, and accidental death. This insurance plan covers the following:

  • Hospitalisation cost
  • Pre and post-hospitalisation expenses
  • Depending on the insurer, the daily cash allowance is of up to 30 days

Personal accident insurance policy covers the insured in case of loss of income of a certain income. It even offers children education benefits to insured dependents.

Types of Casualty Insurance Plan

Accidental insurance is subdivided into two categories, which are listed below.

This type of insurance policy is specially designed to guard an individual in case of accidental damages that either cause permanent disability or situations like death.

Employers take this type of insurance to get coverage for their employees. Group personal accident insurance offers a good incentive to small organisations as it is available at a low cost.

What Does this Policy Cover?

The casualty policy covers the insured and their family under four major events that are listed below:

  • The death occurred due to an accident or injuries caused due to the accident.
  • A permanent total disability that arises due to an accident or injuries caused due to an accident.
  • A permanent partial disability that occurs due to an accident or injuries caused due to an accident.
  • Total temporary disability due to accident or injuries caused due to accident.

The personal accident cover may not cover all these four events. Therefore, you need to read the exact terms and conditions to be sure before buying the insurance policy.

Common Exclusions

Under the personal accident insurance policy, injuries or death caused due to the following below-mentioned reasons are not covered:

  • Self-inflicted injuries or wounds received during suicide attempts
  • Dangerous sports
  • Armed conflict
  • Terrorism
  • A strike or riot
  • Engaging in criminal activity
  • Engaging in a dangerous job
  • Under the influence of alcohol or illicit drugs, etc. 

Depending on the insurance, terrorism-related injuries may be covered.

Benefits

To keep yourself and your family members protected from unprecedented or uncertain events, buying insurance is extremely important. This insurance plan offers security to your family, especially in case you have dependents like elderly parents or young kids. Moreover, investing in a accident insurance policy is way cheaper than buying a term life insurance policy; therefore, you get the advantage of staying secure at a low price.

Since there are no external tests and documents needed over and above the current condition, the insurance plan offers an easy and seamless claim process. Although this plan does not provide tax benefits to the insured, there are numerous benefits a policyholder can enjoy. The insurance plan offers worldwide coverage to the insured and can be customised according to the specific needs of the policyholder.

Your ability to make money may be harmed by impairment. In fact, it can raise your costs. You might require physiotherapy appointments, nursing help, or domiciliary care (treatment at home). Beyond a certain limit, no  health insurance policy will pay for these costs. Getting accident or casualty insurance can help you and your family members stay stress-free.