You have just finished your meeting at office and rushing home for an early dinner is your main priority. You are riding your two wheeler looking carefully for those potholes and another vehicle hits you from behind. You are rushed to the hospital and find you have a fractured leg. No work for the next few months and no pay.
Worse. Those hefty medical bills
It is now too late to avail a personal accident plan but yes better late than never. You can meet with an accident again and this time you are armed with a personal accident plan.
The family members of the policy holder get a death benefit, if death is due to an accident.
Pays for any temporary, partial or permanent injury you suffer in an accident.
The premium for a basic accident plan or even a comprehensive accident plan is very low.
Special accident plans available to high risk workers, who work in mines, oil rigs and have high exposure to accidents.
If you are between 18 to 65 years of age, then you can avail a personal accidental insurance plan.
Personal accidental insurance plan can be renewed till the age of 75 years.
You pay a premium (money you pay to avail the plan) for a sum assured (money your nominee/family gets if you die in an accident.
The word "basic" denotes a simple plan where your nominee/family gets the sum assured only if you/policyholder die in an accident.
No money is paid for the treatment of injuries related to an accident. This makes the premium of the basic plan very cheap and if you pay a premium of INR 400-500 you can avail a sum assured of INR 8- 10 Lakhs.
But what would happen if you were to suffer a serious accident and be totally disabled. This is why you must avail a comprehensive accident plan.
You have to pay a higher premium in a comprehensive accident plan than in a basic accident plan to avail the same/lower sum assured. Unlike a basic accident plan you get money/sum assured for the treatment/hospitalization for injuries related to accidents.
If you suffer an accident leading to permanent total disability (you are totally incapacitated for life), Temporary total disability (you suffer a broken leg which makes you temporarily disabled for a few months) Permanent partial disability (severed fingers in an accident affect your earning ability).The comprehensive accident plan pays you either the full sum assured or a percentage of the sum assured based on the type of disability you suffer.
If you suffer an accident leading to a temporary total disability (say a fractured hand or a leg) leading to a loss in income as you cannot work, the comprehensive accident plan pays you money to compensate this loss.
You can opt for additional benefits in your comprehensive accident plan. You will have to pay very high premiums for certain benefits in the comprehensive accident plan.
These benefits include modification of your house if you are permanently totally disabled (Your house is modified to enable your easy movement in the house). These plans also arrange for the transport of your family members to attend to you when you are injured in an accident. Blood required for you for the transfusion is also purchased under the plan.
Individual Policy: This policy covers an individual in the event of any accident.
Group Policy: As the term itself suggests, it is not meant for individuals and is taken by employers for its employees. Depending on group size, discount on premium might be offered as well. It is a good incentive/ value added benefit for small organizations as it is available at low cost. However, this is a very basic cover and may not offer benefits like that of individual plan.
In case of a death of the person, there are various insurance policies which will help the insured person's family to cope up with financial hardship. An accidental insurance comes to the picture in case of accidents where a person might get disabled. Accidental Insurance provides cover in case of an accident where one might lose body parts that impact a person's earning abilities.
Accidental Insurance excludes suicides, self injury, armed force operations, war etc.
Yearly Contract: Similar to term plan & medical insurance accidental insurance is also a yearly contract that you can renew every year
Maximum Insurance: It depends on your income some insurance companies give 60-100 times of your monthly income others give 8 to 10 times of your yearly income.
For Non Earning Members: Few insurance companies provide accidental insurance to dependents but have limitation in sum assured.
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Health Insurance covers a basket of health related problems, including treatment for surgeries, transplant, hospitalization, pre and post hospitalization, etc. Personal Accident Insurance is a global cover, which offers cover for death and disability (Permanent partial and permanent total disability) due to accident.
Permanent total disablement refers to the absolute disability of an injured person after which he or she cannot engage in any employment or occupation of any description on a permanent basis.
Any accidental injury that is the sole and/or direct cause of total, yet temporary disablement as long as the injured person is totally and completely unable to engage in any employment or occupation of any description can be termed as Temporary Total Disablement.
No, currently there are no Income Tax benefits of availing Personal Accident Insurance. The claim amount you receive, is however, not taxable.
In the unfortunate event of death of insured, the entire Sum Insured will be paid to the nominee. In the absence of a nominee, the claim process may become hectic for the Insured's family members, as they would be required to furnish a Legal Heir Certificate or Succession Certificate. Thus to avoid the hassle, having a nominee can be beneficial.
The personal accident policy covers death, permanent total and partial disablement and temporary total disablement as selected by the client. The policy also offers cover in case of accidental death - the reimbursement of funeral expenses.
Accidental policy premiums do not depend on the age of insured but on his work profile & working conditions. Occupational classification divides people in 3 levels
Level 1 (normal risk) this includes people who are in administration functions and work in offices like accountants, bankers, doctors etc.
Level 2 (medium risk) people who are working as labor in the field.
Level 3 (high risk) people who work in mines, circus etc will come in the higher risk category.
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