Accidents are unpredictable and can happen anytime, and may leave people with physical and financial loss. A Personal Accident Insurance plan gives security to help you prepare for unplanned events. In this article, we'll explore the essentials of personal accident insurance. You’ll learn what it covers, the main advantages of having this policy, the common types of policy, and the process of filing a claim. By the end, you will know why this coverage is essential to protect your health.
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Personal Accident Insurance helps injured or disabled persons due to an accident by providing financial assistance. Regular health insurance policies mainly pay hospital bills, while personal accident insurance addresses issues arising from accidents.
Whether it is a car accident, fall, or other injury, this insurance will provide you with capital to clear the expenses. This premium is made to cater to the medical cost if you undergo a temporary or permanent disability to work.
The most common causes of road accidents are avoidable and should be discussed and acted upon more to help prevent and lower their occurrence. source
Different personal accident insurance policies are available, each catering to specific needs. These include:
A Personal Accident Cover is a valuable addition to your health insurance plan. It provides financial support in case of accidental injury, covering expenses beyond medical bills, such as loss of income or rehabilitation costs. This extra layer of protection ensures peace of mind, knowing you have additional financial security in case of unforeseen accidents.
As you own a car, you must take it through an insurance company for car insurance coverage. However, the law now also requires you to have another “Personal Accident Cover” policy wherever you take your car insurance policy. It is because one individual may own more than one car, and this policy ensures they are shielded if they get injured in an accident. However, it is similar to an insurance policy that gives you regular pay in case you are in an auto accident.
In some cases, life presents distinct difficulties to the people. To help with that, insurance companies provide “add-ons.” These are similar to additions you introduce to your basic insurance policy, most of which can form part of comprehensive insurance. Among these extras is the “accident cover.” Therefore, for added protection against accidents, this can be purchased together with the primary insurance policy. It is similar to customising insurance to best suit one’s requirements to provide maximum convenience.
Now it is time to explain what other kinds of insurance are considered important – life insurance. You know it’s there if something happens to you and can be an umbrella for your whole family. Like health and car insurance on our insurance policies, we also have a “Personal Accident Cover” insurance on our life insurance. Therefore, it is an added safety measure to guarantee your relatives.
For the following reasons, personal accident insurance is a practical solution for anyone willing to protect themselves from an accident's financial consequences:
In many cases, personal accident insurance is inexpensive compared to other forms of insurance and hence can be provided for different individuals' power pockets. It provides coverage that most people need without the high life or health insurance costs.
With benefits like accidental death insurance, disability compensation, and medical expenses covered, personal accident insurance provides comprehensive financial security against many accidents.
Most personal accident policies do not require medical tests or underwriting, meaning you can get covered quickly, even if you have pre-existing health conditions.
Knowing you have financial protection in an accident provides peace of mind. You’ll be able to focus on recovery, knowing that the financial aspects of an accident are covered.
The following are some common injuries that are covered by accident insurance:
Everyone knows how painful and unpleasant it is to get bone injuries. From broken arms to cracked ribs, injuries usually need a lot of medical care and time to heal. Accident insurance helps pay for surgery, hospital stays, therapy, and more.
A concussion can happen from even what seems like a small blow to the head, and the results can last for a long time. Accidental coverage lets you see neurologists and pays for any cognitive or vestibular treatment you need to treat headaches, dizziness, fatigue, and memory loss.
Any kind of burn leaves the skin open to getting an illness. Burns may need special bandages, skin grafts, cosmetic surgery, and other things, depending on how bad they are. Accident insurance can help lessen the blow of painful burn treatments and time off work to heal.
Back and spine injuries often cause unbearable pain and could leave the person unable to move for a long time. Spinal damage, like slipped discs or broken bones, often needs significant surgery, braces, physical therapy, and other specialised medical care. Accident plans help cover the costs.
Losing some or all of your sight can worsen every part of your life. Eye diseases or scratched corneas can change your vision permanently or even cause you to lose your sight. Accident insurance gives you access to eye doctors and treatments like prescription glasses, seeing-eye dogs, education for blindness, and more.
Losing a limb in a terrible accident is hard on the body and the mind. Not only does accidental coverage pay for shock treatment and life support after an accident, but it also pays for prosthetics, home modifications, physical and occupational therapy, and counselling.
Following are the main benefits of getting Personal Accident Health insurance:
If something bad happens to you that could be life-threatening, the insurance will ensure that your family gets a big sum. It could save them money during a very tough time. Taking care of funeral preparations and other business can cost a lot of money. It's a blessing not to think about money while you're sad. This insurance gives you money to help pay for what you need.
Getting hurt in an accident can sometimes leave you unable to do your job. You can earn money from this insurance to help you get used to this new situation. It costs a lot of money to make a house accessible or to buy special tools. Getting the money to make the necessary changes to the house would ease financial stress during an already difficult adjustment time.
You usually don't need a medical checkup to get Personal Accident Insurance, but you do need one to get health insurance. Getting coverage is much easier when you don't have to plan and make time for health checkups.
The premiums for this kind of insurance are generally less than those for other types of insurance. That is, it won't cost you a lot of money. Thanks to low rates, every little bit saved counts. You can protect your money in a disaster without spending too much on premiums. This gives you peace of mind.
You can also get tax breaks under section 80D of the Income Tax Act. This means you can save money on your income tax if you have this insurance. If you save money, you get extra money back every year when you file your taxes.
Personal accident insurance protects you 24 hours a day, seven days a week, whether at home, work, or on holiday. Ensuring you are covered in an accident, no matter where you are or what time it is, is comforting. You don't need to think twice about walking late at night or doing your favourite exciting holiday activities.
Last but not least, this protection makes you feel safe. You and your family won't have to deal with money problems alone. When tragedy hits out of the blue, many things can go wrong. Money problems, on top of everything else, can make things hard to handle. Having company can help you feel better when things are bad.
The following are the general inclusions of the Personal Accident Insurance Plan:
Following are the general exclusions of the Personal Accident Insurance Plan:
You don't need to navigate complex eligibility requirements to purchase a personal accident insurance policy in India. The process is quite straightforward, making it accessible to most individuals. Here's a breakdown:
The cost of accident insurance can vary depending on several factors:
The more coverage you want, the higher the premium. It's essential to strike a balance between what you need and what you can afford.
Younger individuals typically pay lower premiums because they are considered to be at a lower risk of accidents.
Some jobs are riskier than others. If you have a high-risk job, your premium might be higher.
Your overall health and medical history can also impact the cost. A healthier person may pay less.
You can enhance your policy with additional riders like disability coverage, increasing the premium
Determining the right amount of Accidental Insurance Coverage in India can be a bit like finding the perfect pair of shoes – it should fit just right! So, how much coverage do you really need?
A good rule of thumb is to have coverage that's at least 10 times your annual income. For example, if you earn ₹5 lakhs per year, aim for ₹50 lakhs in coverage. This ensures your family has enough to maintain their lifestyle if you're unable to work due to an accident.
If you have loans or debts, make sure your coverage is enough to settle them in case something happens to you. This prevents your family from being burdened with your financial obligations.
Consider your age and the number of dependents you have. If you have a family, you might need more coverage to secure their future.
Some policies offer additional benefits like coverage for disability, permanent or partial, and coverage for education expenses of your children. These can be valuable, so check if they're included.
Keep in mind that the cost of living increases over time due to inflation. So, your coverage should also account for inflation to ensure it remains effective in the future.
While you want adequate coverage, you also need to ensure you can afford the premiums. Balance between what you need and what you can comfortably pay for.
In summary, there's no one-size-fits-all answer to how much Accidental Insurance Coverage you need in India. It depends on your circumstances, including income, expenses, and family situation.
Life insurance and accidental insurance in India serve different purposes. Life insurance provides financial protection for various life events, while accidental insurance focuses on accidents. Premiums, coverage, benefits, etc. differ between the two. The following table lists the differences between these two types of insurance plans:
| Aspect | Life Insurance | Accidental Insurance |
| Purpose | Provides financial protection to your family in case of your death or on maturity of the policy. | Offers coverage specifically for accidents and injuries, providing a lump sum payment. |
| Coverage | Covers both natural and accidental death. | Covers only accidental death or injuries. |
| Premiums | Premiums are usually lower for young, healthy individuals. | Premiums can be higher as they cater to accident risks. |
| Payout | Pays a predetermined sum assured to the nominee in case of death. | Pays a lump sum in case of an accident resulting in death or disability. |
| Policy Term | Typically long-term plans, e.g., 10, 20, or 30 years. | Can be short-term or long-term, depending on the policy. |
| Additional Benefits | Some policies offer investment or savings components along with insurance. | May offer additional benefits like hospitalisation coverage or daily allowance for hospital stays. |
| Exclusions | Usually excludes suicide within the first year and specific risky activities. | Excludes death or injuries from non-accidental causes. |
| Claim Process | Nominee needs to provide proof of death, and the process can be straightforward. | Requires proof of accident, and the claim process can be more detailed. |
| Tax Benefits | Premiums paid and payouts received are eligible for tax benefits under Section 80C and 10(10D) as per the old tax regime. | Premiums paid and claim amount received may be eligible for tax benefits under Section 80D as per the old tax regime. |
When choosing between the two, consider your specific needs and whether you want coverage for critical illnesses, accidents, or both. The following table lists the differences between these two types of insurance plans.
| Aspect | Critical Illness Insurance | Accidental Insurance |
| Coverage | Provides coverage for specified critical illnesses such as cancer, heart disease, stroke, etc. | Offers coverage for accidental injuries or death due to accidents. |
| Trigger Event | Pays out upon diagnosis of a covered critical illness. | Pays out upon occurrence of an accident that leads to injuries or death. |
| Nature of Events Covered | Focuses on severe health conditions that are not a result of accidents. | Concentrates on injuries and death caused solely by accidents. |
| Claims Process | Requires medical diagnosis and proof of the critical illness to make a claim. | Requires evidence that the injury or death occurred due to an accident. |
| Premium Cost | Typically, higher premiums due to the broader scope of covered illnesses. | Generally, lower premiums because it covers a narrower range of events. |
| Common Inclusions | Cancer, heart attack, stroke, kidney failure, etc. | Accidental injuries, dismemberment, accidental death. |
| Exclusions | Pre-existing conditions, non-disclosure of medical history. | Self-inflicted injuries, illnesses, non-accidental deaths. |
| Beneficiary | Pays the policyholder upon diagnosis of a critical illness. | Pays the beneficiary or nominee in case of accidental death. |
| Financial Impact | Helps cover medical expenses and provides financial support during illness. | Offers a lump sum payout to support the insured's family in case of accidental death. |
The following table lists the differences between these two types of insurance plans.
| Aspect | Term Insurance | Accidental Disability Policy |
| Purpose | Provides a lump-sum payout to the nominee in case of the policyholder's death during the policy term. | Offers financial support in case the policyholder becomes disabled due to an accident. |
| Coverage | Covers the risk of death due to any cause, be it natural or accidental, during the policy term. | Provides coverage specifically for accidents leading to disability, including partial or total disability. |
| Premiums | Generally lower premiums for a higher sum assured, making it an affordable choice for pure life coverage. | Premiums can be relatively higher due to the specific coverage for accidental disabilities. |
| Payout | Pays a lump-sum amount to the nominee upon the policyholder's death, helping to support the family financially. | Offers a lump-sum payment to the policyholder if they become disabled due to an accident, aiding in medical and living expenses. |
| Riders/Add-ons | Optional riders like critical illness, accidental death benefit, or waiver of premium can be added for extra coverage. | Riders such as accidental death benefit and permanent total disability benefit can be added to enhance coverage. |
| Exclusions | Typically, suicide within the first year or specific non-disclosure of information may lead to claim rejection. | Exclusions may include pre-existing disabilities or accidents resulting from risky activities, as per policy terms. |
| Tax Benefits | Premiums paid and the payout received are eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act. | Premiums paid can be eligible for tax deductions under Section 80C, and the payout may also be tax-free under Section 10(10D). |
| Ideal For | Ideal for individuals looking for financial security for their family in case of their untimely demise. | Suitable for those concerned about the financial impact of an accidental disability, especially if their occupation involves high-risk activities. |
Here are the steps you need to follow to raise a claim against your Personal Accident Insurance Cover.
A driver's first step in an accident should be to report the incident to an insurance firm. Every insurance firm has a telephone contact or online access where you can report the incident. You should provide all relevant details, including your policy number, the date and time of the accident, and the location.
After you have reported the incident, the insurance company will advise you more about the documents needed. Some documents that are usually required are a duly filled claim form, a copy of the policy, a copy of your ID, medical certificates, if there were any, and any other additional documents that can support the accident case.
The insurance company must handle this process, and they will then investigate to determine whether or not your claim is genuine. This may involve interviews, questionnaires, or medical tests, depending on the circumstances of the accident.
If the claim is valid and by your policy terms, the carrier will approve it. You will get a notice or acclaim.
When the claim is accepted, you will be compensated the right amount as per your insurance company's policy, which can be for medical bills, disability payments, or other allowable costs according to the type of policy you choose.
Personal accident insurance in India offers several tax benefits that can help you save money while ensuring your financial security in case of an accident. We'll break down these tax benefits in this simple and friendly explanation.
When you purchase personal accident insurance, you can claim a tax deduction under Section 80D of the Income Tax Act as per the old tax regime. However, it's essential to note that this deduction is available for the premium paid for the health and accident policies together, not specifically for the accident policy alone.
One of the significant advantages of personal accident insurance is that the claim payouts you receive in case of an accident are generally tax-free. This means you don't have to worry about paying taxes on the money you receive as compensation, providing you with financial relief during a challenging time.
In some cases, you can also enjoy tax benefits on the premium you pay for your personal accident insurance policy. These benefits can reduce your taxable income, potentially lowering your overall tax liability.
Personal accident insurance often includes additional benefits like coverage for medical expenses and disabilities. These additional benefits may also come with tax benefits, making your insurance policy even more financially advantageous.
Here are the tips for choosing the right Individual Personal Accident Policy in India.
First, figure out what you need. Think about your lifestyle, daily activities, and potential risks. Do you have a risky job or hobbies? Understanding your needs is the first step.
Decide how much coverage you need. It should be enough to cover medical expenses, loss of income, and other expenses in case of an accident.
Don't rush! Compare policies from different insurance companies. Look for features like accidental death benefit, permanent disability coverage, and temporary total disability coverage.
Consider your budget. Premiums can vary, so choose a policy that offers good coverage without straining your finances.
Read the fine print. Every policy has exclusions, which are situations not covered by the insurance. Make sure you understand them.
Check the ease of the claim process. A smooth and hassle-free claim process is essential during difficult times.
Some policies offer added benefits like ambulance coverage, education grants, or even coverage for your family. See if these align with your needs.
Consider adding riders to your policy for more specific coverage, like hospitalisation or accidental death benefits.
Find out if the insurer has a tie-up with a network of hospitals for cashless treatments. It can be a significant advantage.
Check online reviews and the insurer's reputation. You want a company that's known for quick settlements and good customer service.
Ensure the insurer is financially stable. You want them to be there when you need them.
ACKO's Personal Accident Policy is like having a safety net for unexpected accidents. It's a straightforward and helpful way to protect yourself or your loved ones financially in case of accidents. Here's how it works.
First, you need to pick a plan that suits your needs and budget. We offer different coverage options, so you can select the one that's just right for you.
To activate your policy, you'll need to pay a premium. This is usually done monthly or annually, depending on what you choose. The amount you pay will depend on your plan and the coverage you want.
If you or the insured person (if it's not you) gets into an accident, We will step in to help. The policy covers various accident-related expenses like medical bills, hospitalisation costs, and even disability or death benefits.
When an accident occurs, you'll need to notify us as soon as possible. We'll guide you through the claim process. You might need to provide some documents, like medical reports or accident details, to support your claim.
We will assess your claim and, if everything checks out, we'll provide the necessary financial support according to your policy's terms and conditions.
Remember, each policy may have its own specifics and terms, so it's essential to read the policy documents carefully and ask questions if you're unsure about anything.
Here are the inclusions of ACKO Personal Accident Policy.
| Claim for | Compensation (% of Sum Insured) |
| Total loss or loss of use of one limb | 50% |
| Loss of one eye | 50% |
| Total loss or loss of use of two limbs | 100% |
| Complete loss of eyesight | 100% |
| Total loss or loss of use of one limb and one eye | 100% |
| Permanent total disability | 100% |
| Death | 100% |
| Waiver of premium | Available under ACKO Flexi Life Insurance Plan. |
Here are the exclusions of ACKO Personal Accident Policy.
Personal accident insurance is critical coverage because any person who wants to avoid compromising their financial stability in case of an accident should have this coverage. Regarding the need for accidental death insurance, disability benefits, or medical coverage, an appropriate personal accident policy can significantly assist your family.
If you go through your needs, choose the proper kind of personal accident cover, and be knowledgeable about the claims procedure, you can easily safeguard yourself from life’s risks. Personal accident insurance safeguards you financially against unexpected accidents.
Here are a few commonly asked questions and answers related to the above topic
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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.
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