Personal accident insurance- an overview

Accidents have a notorious tendency to strike when we are least expecting time. The surprise element of any accident is what makes it more lethal than the actual occurrence. If we knew what is to befall us in the near future, it is easier to provide for such an emergency but in case of an unannounced accident the analogy of a ‘deer caught in the headlights’ is more appropriate.

Accidents are unpredictable and can result in permanent disability, partial disablement or irreparable damage. Thus it is advisable for every individual to be insured with Personal Accident Insurance policy. One of the benefits of the accident insurance policy is that any individual who is below the age of 65 yrs can avail this policy. The accident insurance cover is available for the entire family which not only includes the spouse and children but also dependent parents. The personal accident insurance covers the following risks:

• Hospitalization due to an accident- The insurance company provides a daily benefit up to 45 days of hospitalization due to an accident.
• Broken bones and Burns-The insurance company pays a fixed percentage of the Sum Insured (depending on the policy) in case the insured has suffered from burns or broken bones.
• Accidental death- If the victim dies due to an accident then according to the personal accident insurance cover, complete sum insured is paid as compensation to the family members of the victim.
• Ambulance costs- There is fixed amount of money paid as expenses towards ambulance charges.
• Permanent disablement or permanent disability like loss of limbs, loss of eyesight etc. - In cases of permanent disablement or permanent damage the insured is paid 100% of the Sum Insured as compensation.

However there are certain events which are not covered by the personal accident insurance policy. These events include:

• Injury caused intentionally
• Injuries due to war
• Damage or injury caused while the victim is under the influence of alcohol or drugs etc.