Why it makes sense to have Personal Accident Cover?

We all know that ‘prevention is better than cure’, and have come to accept it as well by now. In spite of taking precautions, we all are still prone to accidents; that’s where the need for having a personal accident cover arises. With such an insurance plan in place, the medical costs can be taken care of while you get treated or are recovering. At the end of the day, it’s practically sensible to be insured with a personal accident cover.

Come to think of it, the impact of a major accident isn’t limited to physical injuries; it might result in a financial crisis as well. According to statistics provided by International Road Federation, Geneva, India accounts for 11% of the global road accident fatalities. Whether you take that figure in isolation or in totality, it does paint a concerning picture, further necessitating the need to have a personal accident cover.

What is the scope of Personal Accident Cover?

Here are the key points you should be aware of-

• Personal accident covers offer coverage for medical and out-of-pocket expenses incurred after an accident.
• In the unfortunate case of death, the nominee receives a lump sum amount (as defined in the policy).

Personal accident covers are usually of two types:

• Individual accident insurance - This plan provides protection for an individual and offers coverage for medical expenses or death benefit if the policyholder were to meet with an accident.
• Group accident insurance - This type of insurance is provided to employees by their employers and is of relatively low cost.

 How does Personal accident cover work in case of severe injuries?

Here are the three possible scenarios which are taken care of by a personal accident cover:

• Disablement: If the incident results in lifetime impairment of the policyholder, then the policy pays a certain benefit amount to the insured.
• Partial Disablement: in case of partial disablement of the policyholder, a certain percentage of the sum insured is paid. The amount is determined based on the extent of loss suffered by the individual.
• Temporary Disablement: if the policyholder is confined to bed for a short term, then the policy offers weekly financial aid.

Elaborating further:

• For a specified number of days, a fixed amount is paid for medical costs.
• All the ambulance costs will be reimbursed to the insured.
• If the unfortunate event results in burns, a percentage of the benefit is paid to the insured.
• In case of death of the insured, the cost of the dependent child’s education is covered. However, coverage has a cap.
• All the benefits are valid in case of the policyholder’s injuries are afflicted due to a terrorist act,

As an individual, you have no control over unfortunate events like accidents, but you certainly have a safeguard in the form of personal accident cover stay prepared.