Let us know what types of accidents a personal accident insurance policy covers. Whenever you hear the word accident, the first thing that comes to your mind is road accident. But a personal accident cover covers different types of accidents. From slipping in the bathroom to injury while working out in the gym and from gas cylinder blast to electric shock and from drowning in water to damage caused by fire, all accidents come under personal accident.
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PMJJBY: Life insurance is available here at a very low premium, know the important things related to the scheme
Let us now know what are the disabilities covered by a personal accident insurance policy. When it comes to the types of disabilities to be covered, these can be divided into three parts.
permanent total disability
This category of disability includes a condition in which a person suffers serious injury and there is a long-term and complete loss of an important part of the body. It includes these situations.
lose both hands
lose both legs
loss of voice
lose mental state
Generally, the policy pays 100% of the sum assured in case of permanent total disability.
permanent partial disability
In this category comes the permanent loss of a part or part of a person’s body. like-
lose an arm or a leg
loss of vision in one eye
loss of hand or toe
In these cases, certain percentage of the sum assured is paid. When you buy a policy, a list of these percentages is usually tabulated and given to you. For example, if you lose hearing in both ears, 75 per cent of the cover amount is paid and if you lose sight in one eye, 50 per cent of the cover amount is paid.
temporary total disability
This category is applicable when the person is temporarily bedridden or immobile after an accident. In these cases, a weekly payment is made during the period of disability (usually 1 per cent of the Sum Assured per week). In addition to these three categories, disability insurance covers the risk of death as a result of an accident.
How is premium calculated?
The premium is dependent on your business and the cover amount chosen by you. Some jobs are classified in high risk environment and high accident prone category. In such a situation, your premium amount will be higher than for those with jobs considered safe. Therefore, if you are a software engineer, you will have to pay a lower premium as compared to a construction contractor.
how much cover should you get
Experts agree that you should go for a cover that is 15-20 times your annual salary. You should make sure that your family can live comfortably in every situation. You should calculate the appropriate amount taking into account all your current and future financial liabilities (debt etc.) and responsibilities (children’s education, marriage), existing investments and insurance you already have.
Most people have a lot of knowledge about general life insurance and health insurance plans but their knowledge about personal accident insurance is a little limited. A general life insurance policy covers loss due to death and a health insurance plan covers the burden of hospitalization expenses. But do you know what is the purpose of personal accident insurance?
Suppose, a person has become physically handicapped in an accident. In this situation, the benefit of life insurance is available only on death (to the dependents of the victim) and the health insurance policy covers only the cost of hospitalization expenses. Some life insurance policies also provide personal accident as an additional benefit but these additional benefits are not comprehensive. Apart from this, the effects caused by the accident, such as death, can also be serious like effects on income, which can be effective for a few weeks to a few months or even a few years. What is the treatment in a personal accident policy in such a situation?
Generally, a personal accident policy is an insurance plan that covers any bodily loss, such as partial or total disability or disfigurement, in the event of any type of accident and the loss of direct income due to it. Fulfills. This policy also indemnifies the nominee in the event of the death of the insured. Apart from this, it also provides a financial stability to the individual and his family in the event of the insured becoming temporarily disabled due to an accident and this feature attracts it towards the purpose of taking insurance of any person. Despite having many similarities, there are many differences between personal accident insurance, general life insurance and health insurance. Like life insurance, the premium for personal accident insurance may vary depending on the occupation of the insured and not his age.
Personal accident insurance is important for every individual but it is considered more important for the salaried employees living in the city. Usually, a salaried employee has to commute daily, for months and years, between home and office. This type of lifestyle is more likely to cause accidents than to fall ill or die. Despite taking all precautions, accidents are bound to happen. This can result in partial amputation or even death. In this situation, an accident insurance policy is considered as important as a normal life insurance and health insurance.
The best part of Personal Accident Insurance is that its cost is affordable to any individual, so it can be easily taken by anyone without putting extra burden on the pocket. One can go for a personal accident insurance (HDFC) cost of 15 lakhs with a premium of around Rs 3,000 per annum. Now since the premium for personal accident insurance is not determined according to the income of the individual, it will be the same for a 50-year-old as it might be for a 25-year-old at that time. The premium for personal accident insurance depends on the nature of the occupation of the individual. Apart from this, personal accident insurance can also be taken comprehensively as a policy for the whole family.
It is true that the premium rate of personal accident insurance is very low, but despite this, people in India still take this insurance plan less. In fact, the features of personal accident insurance are mixed within life insurance and health insurance. Now since most people have one or both of these policies, they try to avoid it by considering it an alternative to personal accident insurance and considering this insurance as an additional cost. The reason why people take less of this insurance scheme is also that there is still very little awareness about this insurance scheme in India. Most people recognize non-life insurance as either health insurance or motor insurance. Many people need this type of insurance but they may not even know about this type of insurance plan. Those who know about this insurance plan think that they do not need it. In fact, people are overconfident about themselves who believe that no accident can ever happen to them. Whereas the truth is that an accident can happen to anyone and anywhere, even if it does not happen to everyone. Therefore it is necessary to have a suitable personal accident insurance to protect yourself and your family from the consequences of an accident.