How will Personal Accident Cover Benefit You?

In a cricket crazy nation like ours, we all have debated about the challenges a typical batsman faces these days. Not only he has to score runs by hitting fours and sixes, but also has to manage the feat by running between the wickets. Imagine running in the sweltering heat wearing so much protective gear including pads, arm-guards, helmet and what not! Any part of protective gear missing and the batsman gets prone to severe injuries. It is the same with our lives as well!

Life is unpredictable and to give it some sense of stability we invest in insurance plans. Life insurance covers life risks while health insurance takes care of medical expenses while we are still alive. The third aspect of insurance cover is a Personal Accident Policy that helps in providing a 360-degree protection from the unforeseen accidents of life.

What is Personal Accident (PA) Cover?

Most of the times it is sold as an add-on to the existing life or health insurance policy, and also as a stand-alone policy as well. It simply means that the insurer will provide you with damages in case of death or disability caused due to an accident. Now an accident need not be only while driving a vehicle or something. As per the Insurance Regulatory and Development Authority of India (IRDAI) Guidelines on Standardisation in Health Insurance, 2013, an accident is defined as a sudden, unforeseen involuntary event caused by external and visible means! This could include you falling off the stairs or meeting with an accident while driving your bicycle or even while jogging.

Benefits of Personal Accident Cover

The Personal Accident cover provides you monetary benefits in the following four scenarios:

1. Death due to an Accident or Accidental injuries

If the insured dies due to an accident, the insurer will pay the sum assured to the nominee. Usually it is 100% of the sum assured that is paid out unless specified differently in the terms of the plan.

2. Permanent Total Disability (PTD)

Every insurance company has its own norms to calculate the payout in case of PTD. It can also go up to 50 % to 100% of the sum assured as per the terms of the policy. Once the insured submits authorised medical reports confirming the disability, the insurer is liable to pay the benefits. The PTD includes loss of both hands and feet or loss of any two limbs or loss of complete eyesight. It is difficult for the insured to earn his living after getting disabled and these benefits due to such accidents cover help in managing finances to a large extent.

3. Permanent Partial Disability (PPD)

This disability benefit will cover the loss of one limb, one eye, hearing ability and loss of thumb/fingers or toes. Depending on the harshness of the damage, the payout will be decided. It can vary from 50% to 75% of the sum assured based on your insurer.

4. Total Temporary Disability (TTD)

This covers any injury caused due to an accident that prevents the insured from attending work. This kind of injury can last from a few weeks to a couple of months. For example a fracture in leg can make you bed-ridden for about a month or so. In this case the insurer will pay a weekly amount for the period you’re bedridden or till total recovery happens.

The above-mentioned scenarios are very much a possibility for anyone and they require sufficient safety checks. A PA cover can help you in coming out of such a crisis minus the financial stress. Do consider these plans for you and your family members. Be completely safe and secure!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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