Features and benefits of personal accident insurance

28 May 2019

Any accident can be a traumatic incident for the party involved in it as well as his/her family members. It puts one in a state of emotional and financial distress. While one has to complete all necessary formalities such as registering a first enquiry report, time is also of essence in such situations to ensure treatment can begin immediately. As such, the least one can do to breathe a sigh of relief during such times of duress, is invest in a health insurance policy, particularly one that offers personal accident insurance. Let's look at the basic features and benefits of personal accident insurance.

Accidental death of the policy holder:

An accident can sometimes result in the death of the policy holder. Now, if the policy holder is the chief bread winner of the family, it can jeopardise the financial condition of his family members. However, if one invests in a personal accident insurance policy, the insurance company pays his dependants the sum assured in case of the death of the policy holder. The individual listed as the nominee in the policy receives 100% of the sum assured according to the terms of the policy.

Permanent partial disability:

An accident can also render one disabled. Any injury resulting in the loss of eyesight, speech or limbs is covered under permanent partial disablement. In such a case, the policy holder receives a compensation which is essentially a percentage of the sum assured. This coverage is offered for a specific, pre-determined period of time or as a one-time lump sum amount, as stated in the terms of the policy.

Permanent total disability:

This is also one of the most important of the personal accident insurance advantages. Permanent total disablement is defined as any injury that affects the policy holder's source of income i.e. one which prevents the policy holder from resuming his regular duties for a period of 12 months and above. It also refers to a disability which is permanent in nature and there is no hope for the injured party's recovery or his/her health to improve. For instance, if the policy holder goes in a state of coma, his nominee can make the claim on his/her behalf and receive the total sum assured.

Temporary total disability:

When a loss occurs owing to an injury sustained within the term of the policy, during which the policy holder is unable to resume his normal duties for a specific period of time, he can take advantage of the temporary total disablement cover offered in a personal accident policy. This feature enables the policy holder to receive financial compensation benefits on a weekly basis until recovery. Insurance providers determine the compensation on the basis of the severity of the impairment.

Accidental hospitalisation coverage:

In polices that come with higher amounts of sums assured, one can also seek the benefit of accidental hospitalisation coverage. This simply means that if one needs to be hospitalised for a longer duration of time as a result of an accident, he can continue his treatment in the hospital while the insurance provider takes care of the expenses. This facility is typically offered for a period of 50 days.

Ambulance charges and cover for transporting mortal remains:

Another common benefit under personal accident insurance includes ambulance charges. Your insurance provider pays for the ambulance charges under your policy, including picking up the policy holder from the scene of accident, dropping him/her home in case ambulance services are required at that time as well as paying the nominee a pre-determined assured sum towards the transportation of the mortal remains of the policy holder to his/her residence in the unfortunate event of the accidental death of the policy holder.

As is evident from the features and benefits of personal accident insurance, this is a policy that everyone should consider because there is no telling when a tragedy can occur. Also, claims can be made if the policy holder is involved in various kinds of accidents a road accident, falling down a flight of stairs, breaking an arm or leg while playing sports and so on.