For most of the people out there, buying a personal accident cover is not among the top priorities. The two significant factors that contribute to the reason are-
1. No tax benefits - which makes customers least interested in the cover and,
2. Significantly low premium and commission payable – which makes the agents not keen to sell it aggressively
Apart from these reasons, the policy is issued on a yearly basis, which makes it a painful business to do. Most of the people forget to renew their policy and fail to take the benefits of the same. Fortunately, things are changing for the better! Thanks to the growing levels of financial literacy, many people consider buying a personal accident policy. Also, online availability adds to the accessibility of the accident covers.
A personal accident insurance policy covers the insured against death, temporary or permanent partial/total disability resulting from an accident. Also, this policy offers monetary reimbursement in case of bodily injuries, disability, or death caused due to an accident.
The improbability of accidents makes it a compelling risk. Buying personal accident insurance cover has become a potential hedge against unforeseen events. Hence, you should make a smart decision while being well informed about the policy you will be buying. Mentioned below are a few factors you must consider while choosing your personal accident policy:-
Type of plan
Stop contemplating over the type of insurance policy you should select. You can buy either an individual or a family personal accident cover, whichever suits your requirement. If you are purchasing a family plan, then make sure the policy covers your family against accidents that may take place in the day to day life activities.
Premium
The premium of the policy is that amount, which is to be paid regularly to the insurer to maintain the validity of the insurance coverage. Also, the premium should be affordable and within your budget while reflecting the coverage of the policy. There should be a balance between coverage extended and premium charged. For ex. - Low-cost with minimum cover is not the ideal way of getting insured as it may not be beneficial in the hours of need.
Policy coverage
The policy coverage should almost include all the daily activities which may lead to accidents at home or at the workplace. The more extensive the policy coverage, the more protected you are!
Insurer
Not to mention, the reputation of the insurance company is also equally crucial while choosing the right personal accident policy for you. Their track record of claim settlements speaks about their quality and reliability.
Benefits
Permanent total disablement, permanent partial disablement, and accidental death benefit are some of the inbuilt benefits in most policies. All the more, ensure that the plan also provides for ambulance cost and hospital expenses.
Coverage Abroad
Look for a personal accident insurance policy that even protects you when you are traveling abroad.
Benefits to family
You should obtain what benefits are being offered to your family members if an accident happens and leads to death or permanent disability are. Higher the compensation benefit to the family, better off they will be.
Exclusions
You must pay particular attention to the events that are excluded from the policy coverage. If the excluded event is likely to occur due to occupation and other reasons, then you should not opt for such personal accident cover.
Claim settlement process
Learn about the claim procedure to ensure that it is hassle free and quick. There is certain documents like- claim form, a copy of the FIR, medical certificates, etc. That must be kept ready while registering the claim. Also, make sure you are aware of the involvement of the TPA and its claim history.
Points mentioned above are pertinent in the choice of your accident insurance. With sky-rocking medical costs across the globe, buying just a traditional health insurance policy won't suffice. You will have to purchase a personal accident insurance policy to ensure that you have a back-up for unforeseen circumstances. A personal insurance policy provides peace of mind amidst much uncertainty, especially when it comes to finances.
