We have all heard the phrase…Accidents will happen. This means that despite our best efforts things sometimes do go wrong. Many times in life we are faced with uncertain conditions or a crisis. These do not knock on our door and announce themselves. They come quickly and suddenly even before we know what is happening.. Does that mean we should leave the happiness of our families to chance?
An accident is an unplanned and sudden event with disastrous consequences catching us suddenly, when we least expect it. This could be a collision with a vehicle, flipping over of a car or a falling of a section of an under construction bridge or flyover. This is why we at IndianMoney.com believe that you need to have a solid crisis management plan. Very few people can afford to retain this kind of risk and manage it on their own. But IndianMoney.com recommends everyone to transfer their risk to a professionally managed company (Insurance Company). This is where the concept “Personal Accidental Insurance” comes into the picture.
What is a Personal Accident Policy:
A Personal Accident policy provides compensation to the policy holder and his family members in case of death, permanent total disability, permanent partial disability or temporary total disability.
Do I Need Accident Insurance
Let us consider the following case. Mr Nitin a 28 year old software professional was working for a highly reputed Software firm in Hyderabad. He was a rising star in his company. Newly married he had taken up a health insurance and a term life policy. One night after completing a major project he was in a hurry to reach home when his car collided with a van which was coming without lights from the wrong side. He was severely injured with a fractured vertebra and serious limb damage. It wasn’t even his fault yet he went through a severe unannounced crisis. His term policy was of no use as he had not passed away in the accident. His health policy was for INR 10 Lakhs which was exhausted in this crisis and necessary medical treatment. Would a Personal Accident Policy have helped him? Here Insurance Planning could certainly have helped him. I would like to remind all of you that the team of Financial Planners at IndianMoney.com are always there for you to plan your Insurance needs in a most efficient manner. You can explore this unique Free Advisory Service just by giving a missed call at 02261816111.
It Is a Rare Occurrence
As per reports from renowned sources a road accident occurs every minute in India and a fatality every four minutes in India. Most of these accidents were due to rash driving by Trucks and Buses and the victims were common pedestrians and daily wage workers going to work on cycles. More than half these accidents occurred in rural areas. Does this surprise us? Remember If Anything Can Go Wrong It Will.
Road Safety In India:
We in India find rash driving a very common occurrence. ..The shabby state of our roads nevertheless we tend to ply our vehicles at great speeds. We overtake vehicles without any regard for the traffic rules. Helmetless travel is a regular occurrence. Drunk drivers ply our roads with scant concern for our traffic and other laws knowing that they can get away with anything. Being a responsible citizen of India, you must post your complaint to the concerned Authority whenever you come across such negligence on the part of the fellow drivers? On a lighter note there are two kinds of pedestrians those who are quick and those who are dead….
Affects Our Young:
Over 30% of accidents affect people in the age group of 20-25 years who form the bulk of our workforce in the country. Most of them would not have accident insurance resulting in severe financial and emotional losses to their families. The emotional losses cannot be replaced, but the financial losses should be protected against. Hence a Personal Accident Policy should be a policy none of us can afford to ignore In order to understand the best insurance policy one needs one can look up IndianMoney.com. I would like to remind you that it is better to light a candle than to curse the darkness.
Who Should Purchase Such a Policy?
We have seen that accidents affect mainly the working youth of our country. Here the focus of working youth should be to pick up such a policy. Most of the youth would have a savings Bank account. Here certain Public Sector Banks offer a Personal Accident Policy to Saving Bank Account holders for a nominal fee as low as INR 100 per annum. This translates to an amount of less than INR 10 per month, Around a price of a single cup of tea. The age group insured is 18-65 years for a sum of around INR 4 Lakhs Here Insurance Planning can go a long way in resolving your difficulties. Remember Better Late Than Never.
There Are So Many Policies Which One Should I Take?
We have seen the advertisement on TV where a group of youth takes up insurance policies without checking the terms and conditions. Here one can check online which are the policies one would like to purchase from a number of different sites , where one can compare a number of Personal accident policies in both the Private and Public sector Insurance Companies and family accident insurance and take up the policies. This would prevent any misleading information from filtering through. If you want to know more about Insurance Planning you can contact IndianMoney.com and post your reviews and suggestions. Here it is wise to remember that the Proof of the Pudding is in its Eating.
Aren’t the Premiums High for So Large Sum Assured?
Let us first discuss individual policies or an accident cover for a single individual. Here I would like to give a brief overview of both Public sector and Private sector accident policies in India and their approximate premium amounts. Let us consider certain Public and Private sector Insurance Companies which gives a sum assured of INR 10 Lakhs on a yearly premium of about INR 800.This translates to less than INR 70 a month which is the cost of a single meal. These are generally pure death benefits on the death of a policy holder due to an accident. Under certain policies in Public Sector Accident Insurance Policies we get Death, Permanent and Partial Disablement with add on covers for a premium of about INR 1000.For certain Private policies in the private sector we pay a premium of around INR 800-1000 per annum for a pure accident policy and a premium of INR 2000 -3000 per annum for a sum assured of about INR 15 Lakhs with certain Add on covers which includes medical hospitalization up to 10 Percent of sum assured. Here a thorough study of types of Personal Accident Policies and general Insurance Planning can prevent fraudent and mis-selling practices common in insurance sector.
What Is Covered Under Such Personal Accident Policies:
Ø Accidents arising due to Rail, Road, Ship and Aircrafts.
Ø Injury due to collisions and Falls.
Ø Snakebite and Frostbite
Ø Drowning, Poison and Burn Injuries.
Ø Temporary Total Disablement which means a person is not able to perform assigned tasks that he was previously doing.
Ø Loss of limbs.
Ø Last rites and Funeral Costs.
Ø Hospitalization due to accidents.
Not Covered Under Personal Accident Policies:
Ø Suicide and Self Inflicted Injuries.
Ø Pre existing physical and mental defects.
Ø Bleeding From Inner Organs.
Ø Actions arising from civil war and Terrorism.
Ø Pregnancy and Childbirth.
Tax Benefits of taking personal accident Policies:
There is No Income Tax benefits for the premium paid under such a policy.
How can I make the Necessary claim in case of accidental Injuries?
Ø In case of accidental injuries immediate notice should be given to the Insurance Company with all the necessary particulars.
Ø FIR and Police Report.
Ø Medical Certificates pertaining to the type of injury details and pertaining to nature of treatment from qualified doctors and nursing homes.
Ø Submission of all relevant documents as required by the insurer.
Necessary claim in case of Death:
Ø Death Certificate
Ø FIR Report
Ø Report of Doctor and Nursing homes.
Ø Post Mortem report.
I would like to end this article on a note of how important a Personal Accident (PA) policy is to all of us. There is a lot of uncertainty in life which cannot be changed. However we can certainly change what we have in our hands by insuring ourselves and our families a bright future. Hence we all must prioritize Personal Accident Policies and make Insurance Planning a necessity in these times. If you have any complaints with regard to your insurance policies you can post your reviews and complaints on IndianMoney.com.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.