The purpose of a health insurance
policy is to provide financial support towards medical expenses like hospital bills, drugs, treatment, etc and a Life Insurance Policy is meant to cover the risk of death. While the concept of these two types of insurance policies is known to all, very few people know about a personal accident insurance cover.
A personal accident insurance policy
covers the insured member against death or disability because of an accident. This policy is offered by all general insurance companies and you can find out about the same in the websites of many of such companies.
If you are of the opinion that long term insurance policies are cheap, then think twice! The premium rates for a personal accident insurance policy can be as low as Rs 228 a year and yet can offer you coverage of Rs 5 lakh. These days both PSU and private general insurance companies offer personal accident insurance cover. Generally, PSU personal accident cover plans offered by PSU insurers are considered as cheaper, the plans offered by private companies come with wider range of benefits, but of course for higher premium rates.
In addition to the basic death and permanent disability cover in your personal accident insurance policy, you can also opt for extra protection towards partial and/ or temporary disability, loss of livelihood due to a disability caused in a personal accident.
Though a personal accident cover can be bought as an independent policy, bundling it up with other policy just adds to the benefits that one could avail. In addition, some companies may offer more cover for a lesser premium or discounts, when personal accident insurance policy is bundled up with their other policies like car insurance and health insurance.
However, irrespective of whether you are buying an independent personal accident cover or a bundled personal accident insurance policy, ensure to read the terms & conditions before finalising the deal. For instance a fractured arm is a temporary disability, you would get a claim for it only if your policy includes cover against temporary disablement. Do not hesitate to ask questions about the policy exclusions. Clear all your doubts with your insurance provider or agent.