Safety Center Article - 1

A personal accident cover is an add-on cover that you can avail alongwith your car insurance policy to financially secure your own self against expenses relating to an accident. In case of vehicular accidents, the victims always run the risk of getting severely injured, the effects of which can last for a long time.

Now, a standard car insurance policy covers your car against damages or losses resulting from one such accident, but when it comes to you, not so much. So unless you are covered under some health or life insurance policy, you are left to fend for your own expenses. This is where the importance of a personal accident policy becomes clear.

Having a personal accident cover can have numerous advantages for you. This rider offers upto 100% of the sum assured, if the policyholder were to permanently lose their limbs or die in an accident. This policy also offers financial security to the policyholder when they become incapacitated.

However, if the policyholder happens to have an invalid driving license, he will be ineligible for any claim.

Individual Accident Insurance
As the name suggests, an individual personal accident cover protects an individual/car owner/policyholder against impairment (short-term or long-term) and death resulting from intentional or unintentional mishaps.

Group Accident Insurance
A group accident insurance is a type of personal accident cover which employers purchase for their employees. This plan can be very advantageous for small scale companies as it generally comes at a low cost. On top of that, discounts on insurance premium can also be expected based on the size of the group.

However, coverages offered by a group accident cover can be limited in comparison to individual personal accident covers.

Accidental death – A personal accident cover offers a lump sum amount of money to the policyholder or their dependants in case they were to sustain fatal injuries or pass away in a car accident. Necessary documents proving the same have to be produced when making a claim for this.

Permanent total disability – This policy pays compensation to the policyholder if they were to suffer life-long total disablement due to an unfortunate event.

Permanent partial disability – The policyholder receives compensation as a percentage of the total benefit amount, upto 100% in event of partial impairment due to an unfortunate event.

Temporary total disability – In instance of the policyholder suffering from a mishap that results in short-term impairment, confining them to their homes, the company is entitled to pay them a weekly compensation up to a maximum limit.

Acts of terrorism – The policy also covers the policyholder against injuries suffered as a result of terrorist activities.

Hospitalization – The insurance company also provides financial relief to the policyholder in case they need to be hospitalized due to an accident.

• Pre-existing disability or injury
• Childbirth or pregnancy
• Suicide or self-injuries
• Non-allopathic treatments
• Influence of intoxicants
• Committing a criminal act, or being involved in war activities suffering from mental disorder
• Participating in naval, military, air force, adventurous or sports activities

Accidental mishaps are undesired and also unexpected. Getting involved in an accident could have a dampening effect on you, physically as well as mentally. You run the risk of injury, impairment and even death when you become the victim of an accident. Then again, the longer the effect of the accident shall last, the longer you will remain removed from your office or business.Apart from the entire mental trauma that your family will get exposed to in the event of your accident, they will also have to suffer from financial issues if you were to lose your income.

Having a personal accident cover can actually save you from those financial troubles and mental agony. It could provide you several benefits, including

• Family security
• Legal and funeral expense coverage
• Child education
• Coverage against Demise or impairment in public transport/ double indemnity

Other than the above, personal accident covers have many other benefits too, such as -

• Customizable plans
• Easy claim processes
• Low premium rates
• Choice in type of plan
• No medical tests or documentation

When buying a personal accident cover, you would obviously want to purchase a policy that is the most suitable for you, covering all your needs adequately. For that to happen, you need to take into consideration a few factors before you finally make up your mind as to which policy you want.

• Type of plan
• Premium
• The insurer

• HDFC Ergo Personal Accident Plan
• New India Assurance Personal Accident Plan
• SBI General Personal Accident Plan
• Bharti AXA General Insurance Smart Individual Personal Accident Cover
• Max Bupa Personal Accident Cover