Personal Accident Insurance is an agreement between two parties - the insured and the insurer - wherein, the insurer (or the insurance provider) promises to give the insured or his family a financial compensation in the event of death or permanent physical disability caused solely & directly from an accident by any external, violent & visible means.
There are over 20 general insurance companies who offer personal accident insurance in India.
Different types of personal
accident insurance coverages available are as follows:
Cash payment: In case an injury caused during an accident requires treatment, your personal accident insurance policy will take care of the expenses incurred for the same. In addition, if following the injury, caused in the accident, you have to stay away from your office/job, your personal accident insurance policy might cover some of your expenses for the period you are home. Such reimbursement amounts often come handy at the time of paying rents, groceries, etc.
Death in an accident: Many personal accident insurance policies offer risk coverage against accidental death of the insured. If any accident results in the death of the insured person, then his/her personal insurance policy will pay to his/her family or beneficiaries a prearranged sum of money.
Disability due to an accident: If following a disability, caused in an accident, the insured goes out of job, there might be chances that his/her personal accident insurance policy may provide him/her with some amount as monthly income.
Personal accident insurance, which is categorised under
health insurance, is often available as a bundled policy with other insurance plans like car insurance, home insurance.
Before you buy your personal accident insurance policy, as a thumb rule, make it a point to read and understand the terms & conditions mentioned in the policy document. In order to know what coverages and risks are you covered for it is important to understand the intricacies mentioned in your policy features. It is definitely important to make a note of what are you covered for under your personal accident insurance policy. However, at the same time, it is equally important to note that what does the policy does not cover. This clarity will also assist you in understanding the claim procedure followed by your insurance provider.