Personal Accident Policy as a Rider may not Offer Certain Covers; Go for Standalone

You may have protected your life with a term insurance policy to provide financial security to your family. You may have bought a health insurance policy as well for seeking financial cushion in case you get sick. But have you taken personal accident cover yet?

Most of us have either no idea about this cheapest financial instrument or don’t consider it as an essential product. The most prolific reason is, perhaps, the insurers themselves don’t promote it because of its small ticket size. Agents too, never tell you about this product because they earn meager commissions from it. Yes, they may ask you to take it as a rider with motor insurance policy, Health insurance or Term insurance Policy. But personal accident cover taken as riders, does not offer certain covers.

Hence buying a separate personal accident (PA) cover of adequate sum insured is a wise decision. It’s a must buy financial product because accidents can occur anywhere that would make a big dent in your saving.

According to a National Crime Bureau (NCRB) report, frequency of road accidents in India is among st the highest in the world. The bureau brought a horrible fact that in India about 135,000 people die per year in road accidents. It’s an eye opener; how unsafe we are!

Frequency of road accidents in Delhi is about 40-folds more than the rate in London, the report said.

According to road traffic safety experts, the actual number of accidents and casualties may even be more than what is registered, as many accidents go unreported. Those accident victims who die after a span of time of the accidents are not counted as accident victims.

A personal accident policy can help you financially when you meet an accident and become disabled to work. The best part of the personal accident policy is its unique feature of financial compensation for a specified period when you stop working due to partial/total disability. In case of permanent total disability, the policy will pay you out a lump sum amount, and policy will terminate.

Here are Reasons why You should not Miss a Personal Accident Policy 

(i) It provides comprehensive coverage such as – death, permanent total disability, permanent partial disability and temporary total disability.

(ii) It’s the cheapest insurance product. You can get extremely high coverage by paying a very small premium.

(iii) You are more prone to accidents, as per NCRB record.

(iv) Rising medical costs can eat out your hard-earned savings.

(v) A Term Insurance Policy pays the nominee only if the insured dies,whereas a health insurance policy covers medical expenses only. But a personal accident policy pays even in the case if the policyholder survives with injury/disability.

(vi) An accident can leave you impaired to meet you and your family’s both ends. In such situation, a Personal accident policy can help you providing financial support.

(vii) It can provide you income replacement for maximum up to 2 years, depending on the policy.

(viii) Like a Health Insurance Policy, it too, covers hospitalization expenses if the insured admitted to a hospital after an accident.

Check out this Articles: Best Personal Accident Insurance Policies in India

It’s advisable to buy a personal accident policy even if you have already sought term insurance and health insurance protection. It gives you an extra layer of protection. Do thorough research using online insurance comparison engine in order to reach informed decision.

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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