Benefits of Personal Accident Insurance Policy

Benefits of Personal Accident Insurance Policy

Personal Accident Insurance provides insured people with full financial protection against unforeseen events including bodily injury, accidental death, permanent and temporary disabilities, partial/total disability, and death as a result of an accident. The nominee is completely compensated by the insurer in the event of the policyholder’s accidental death. Accidents resulting in the loss of limbs, eyes, or sight may be eligible for further compensation.

Accidents don’t come knocking on your door. It can arise at any time and in any place, resulting in moderate to serious injuries. Any uncertainty can lead to financial ruin, which is why it’s a good idea to get some Accidental Insurance. It will provide crucial financial assistance to you and your family in the event of an accident, bodily injury, or disability (partial/permanent/temporary). Hospital Confinement Allowance, Accidental hospitalization coverage, and Medical Expense Coverage are some of the additional rider benefits.


In India, There Are Some Alarming Statistics Regarding Accidents:

Every day, over 1214 traffic accidents occur in India. In recent years, people have been more prone to catastrophes than they could have imagined? Here are some facts and figures to think about:

  • According to the Ministry of Road Transport and Highways, there were 4.64 lakh accidents in 2017. Furthermore, about 1.47 lakh people died in highway accidents in India.
  • According to current figures, the number of accidents increased by 1.68 percent in 2018.


Personal Accident Insurance Policy Types

There are two categories under Personal Accident Insurance Policy. Here’s a short overview of the two options:

  1. Individual Accident Insurance: This type of insurance shields a person from financial ruin in the case of an accident. It includes unintentional death, sight or limb loss, and other long-term effects of an accident.
  2. Group Accident Insurance: Some insurers gave a discount based on the number of people in the group. Because it is affordable, it provides a great incentive/value-added advantage for small enterprises. However, in comparison to an individual plan, this is a rather basic plan with fewer benefits.


Accidental Insurance Coverage

You can acquire the following coverage benefits with a personal accident insurance policy:

Accidental Death Cover

An accident can be emotionally and financially disastrous for dependent family members. In the case of a fatal injury, the whole sum assured is paid to the nominee designated in the policy document.

Permanent/Total Disability Cover

A defined sum insured amount is paid to the policyholder if an accident results in permanent impairments or lifetime complete impairment, such as loss of both limbs.

Permanent Partial Disability Cover

If the insured sustains bodily injuries that result in permanent partial disability, a portion of the benefit (up to 100 percent) is given to them.

Temporary Total Disability

If the insured is bedridden due to temporary complete impairments, the insurer will provide a weekly allowance to compensate for the loss of income. In the event of a loss of wages, the insured can use this claim amount to pay the EMIs.


Why Choose Personal Accident Insurance?

A small accident may render a person temporarily incapacitated, while catastrophic accidents can have a considerable impact on a person’s life and overall well-being. It is now vital to have a robust insurance plan to protect oneself from such disasters.

Personal Accident Cover offers financial assistance in the case of a fatality, bodily injury, disability, or deformity caused by an accident. Insurer grants compensation in the event of a road, air, or rail accident, drowning, or injuries sustained as a result of a collision, physical injuries, or burns, among other things.

In the case of an accident, personal accident insurance coverage provides financial help to the policyholder, regardless of the severity of the incident. The insured is reimbursed in the event of disability, accidental death, or dismemberment as a consequence of an accident.

The best personal accident insurance policies in India provide financial aid to dependent relatives in the case of the policyholder’s untimely death due to an accident. It safeguards you against the worst-case scenario, providing you piece of mind.

Additional advantages include hospital bill payment, hospitalization coverage, and ambulance cost reimbursement.


Personal Accident Insurance Policy Benefits

Imagine being hit by a car and being paralyzed for the rest of your life. There would be no monthly or annual income, only bank EMIs, medical bills, and other costs. It is important to obtain personal accident insurance to deal with such an emergency case. Here’s a brief review of some of the most important benefits of purchasing personal accident insurance:

  • Safety for the family
  • Medical testing and paperwork are not required.
  • Significant coverage at a lesser cost
  • Coverage in every country
  • There are plans for both individuals and families.
  • The simple and verified claim procedure
  • Service available 24×7
  • Expenses for legal and funeral services are covered.
  • The advantages of child education
  • In the event of death or impairment when using public transportation, there is a double indemnity.
  • Customized plans are available.


Personal Accident Insurance Policy Additional Benefits

Aside from the four major benefits, a personal accident insurance coverage offers a number of extra advantages. Some insurers include these advantages in the base plan, or you may purchase them as an add-on protection for a fee:

Hospital Daily Cash: In the event of an unintentional hospitalization, the insured receives a daily monetary allowance. The duration of coverage is restricted to a set number of days (as specified in the policy terms and conditions).

Ambulance Expenses: Compensation is granted for ambulance fees used to transport the insured to the hospital following an accident.

Transportation or Repatriation of Mortal Remains: In the event that the policyholder dies in an accident, the nominee will be reimbursed for the costs of repatriation and transportation of the policyholder’s mortal remains from the accident site to the hospital, home, or cremation ground.

Broken Bones: A set compensation is provided under the insurance in the event of broken bones or any other bone injury.

Burns: Accidental burns are also covered by insurance.

Family Transportation Allowance: When the hospital is too far away from the insured’s home, a Family Transportation Allowance is available. In such cases, the real transportation expenses spent by the covered person’s close family members are also reimbursed.

Education Benefit: In the event of the policyholder’s untimely death, the expense of the dependent child’s education is covered up to a certain level.

Loan Protector: A lump sum payment (defined in the insurance schedule) is paid in the case of untimely death or lifelong impairments.

Adaptation Allowance (also known as Home Alteration and Vehicle Modification Benefit):

Some insurers may provide this benefit. Money to adapt one’s home and/or car is also covered in the event of permanent complete impairments or amputation as a result of an unfortunate accident.


Tax Benefits under a Personal Accident Policy

Under Section 80D of the Income Tax Act of 1961, the premium paid for personal accident insurance plans that offer protection against dismemberment, bodily disability, or accidental death is not tax-deductible. It’s crucial to remember, though, that the fundamental reason for purchasing insurance is to give security and protection.

*Tax benefits are subject to change due to changes in tax rules.


How Can Personal Accident Insurance Help?

You should think about what would happen to your loved ones if you died, and you should think about how they would cope if you become permanently incapacitated. You can be ready for the unexpected if you have the right insurance coverage. GIBL.IN provides a variety of personal accident insurance policies from various firms that may be customised to meet the needs of the customer. GIBL.IN also assists with the purchase of the chosen plan.

A personal accident insurance coverage covers accidental injury and death. Such plans, on the other hand, do not cover natural deaths or deaths due to an illness.

Also see: All About Home Insurance Qualified Leads

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