Who should get personal accident insurance?

bike accident

Accidents can happen when we least expect it. In our day to day life we can be exposed and vulnerable to various risks and accidents which can happen at any time, causing bodily injury, disability or even death. While accidents cannot be avoided completely, even if you observe all safety measures and precautions, their impact can be reduced by monetary compensation if you take out personal accident insurance.

Personal accident insurance provides monetary compensation in the case of an accident, which can sometimes lead to death, injury, total or partial disability. This type of policy will cover accidents of all types and in many cases also incidents of terrorism. The various events covered under personal accident insurance are personal damage caused due to accidents in a variety of circumstances, such as on the road, rail and air, injuries due to fall or impact or collision, injuries due to drowning and poisoning and burns.

There are three main features to personal accident insurance which you should be aware of to make sure that you are covered in all eventualities.

Death Due to Accident
If the policy holder dies in an accident, the amount assured under this policy is payable by the chosen insurer. However, it is important to note that if death takes place after 15 days of the accident the cause of death could be contested and therefore the insurance company may not entertain the claim. To avoid this, if you do suffer an accident be sure to make sure medical notes are taken by your doctor, as well as keeping personal notes, evidence and photos.

Permanent or Partial Disability
If the insured party sustains injury in an accident and therefore becomes physically disabled either partially or wholly, the insurer is liable to pay compensation to the insured party, depending on the seriousness and intensity of the disability. However, the claim becomes payable only if the disability of the insured party continues beyond 180 days. If the injured party is able to work and is not impaired after 180 days, they will not be entitled to receive any claims.

Disability Due to Severed Limbs
If an accident should result in the severance or removal of upper or lower limbs of the policy holder’s body, thus causing permanent disability then they are entitled to receive compensation as per the terms and conditions assured in the policy. The compensation for loss of limbs are as follows:

  • For loss of one leg or one hand, the compensation payable is 50% of the assured sum.
  • For loss of both hands and one leg, the entire assured sum as per the chosen policy, is payable in full as compensation.

It is vital to note that there are a variety of incidents which are not covered under policies, and therefore the policy holder will not receive any personal injury compensation, these include:

  • Natural Death.
  • Injury of disability that is due to suicide, intentional suicide or intentional self-injury.
  • Due to participation in extreme sports such as bungee jumping, mountaineering, hot air ballooning etc.
  • Acts that are done with criminal intention or are against the law.
  • Arrests or detention by the law.
  • War, civil disturbance or an attack by a foreign country.
  • Anything related to childbirth and pregnancy.
  • Any injury caused by the ingestion of alcohol or drugs.

When choosing  personal accident insurance, make sure that you read the finer details and understand policy restrictions completely before deciding on what course to take. Many insurers also advise that you take out insurance for your entire family, so that you are covered for a wider variety of accidents.

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photo credit: Oneras

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