Accidents could happen to even to the most cautious of people, and will usually have a large impact on our day-to-day lives. While even minor accidents may render us incapable of working and cause us significant medical expenses, major accidents will completely alter the course of our lives. Major accidents could result in death, total permanent disability, temporary disability for a period of time, etc. Added to the hospitalization and medical expenses caused by accidents, one’s family might also be left in the lurch due to the absence of adequate funds.
Considering this, it is imperative for people to purchase a personal accident insurance plan, even if one is already covered by a comprehensive life insurance policy. If you meet with an untimely accident when you are covered under a personal accident plan, you or your nominee will be entitled to receive a payout from the insurer, which could in-turn help you meet your immediate expenses, pay off any outstanding debts or liabilities, or meet the long-term financial needs of your family. Given the amount of choice prospective policy buyers have while purchasing these plans, you can opt for a plan that perfectly covers your needs with an optimum sum insured amount and affordable premium payments.
A personal accident health insurance policy provides coverage for expenses incurred on the medical treatments taken for a disability caused by an accident. Alternatively, the policy also provides a benefit amount if the insured individual passes away due to an accident.
Here are the types of benefits most insurers provide under a personal accident health insurance policy:
While the above-mentioned benefits are the key benefits provided by most health insurance companies under a personal accident plan, here are a few additional benefits that insurers may offer:
Personal accident policies, like regular health insurance policies, have exclusions too. A disability caused by voluntary participation in dangerous activities, self-harm, mental instability, pre-existing diseases, etc. are not covered under the policy.
While purchasing personal accident insurance plans, you will need to choose a preferred sum insured amount. Make sure to choose a sum insured that’s large enough to cover all your liabilities and the future needs of the family, should anything happen to you. You will also have to ensure that you pay the due premiums towards the policy, before the end of the grace period.
If you meet with an accident, which causes disability or dismemberment, while being covered by the policy, the first step is to notify the insurer of the accident and of the subsequent hospitalisation. Secondly, you will have to file a complaint with the police (if it was a road accident or caused due to a criminal act). Next, you will have to submit the claim form and all relevant documents related to the accident and the hospitalisation, to your insurer.
If the policyholder meets with an untimely death due to the accident, the nominee or the legal heir should inform the insurer of the event and should submit the claim form, the death certificate, police report, etc. to the insurer. The insurer will begin the claim settlement process as soon as they receive all due documents. Personal accident claims are usually settled at a faster pace.
|Insurer Name||Plan Name||Age Range||Basis||Coverage Offered|
|Apollo Munich||Personal Accident Premium Plan||91 days – 69 years||Individual/Family Floater Plan||Adults (under 70 years): Sum insured up to Rs.5 crore Adults (over 70 years): Sum insured up to Rs.5 lakh Children: Sum insured up to a maximum of Rs.10 lakh|
|Apollo Munich||Personal Accident Standard Plan||91 days – 69 years||Individual/Family Floater Plan||Adults (under 70 years): Sum insured up to a maximum of Rs.50 lakh Adults (over 70 years): Sum insured up to Rs.5 lakh Children: Sum insured up to a maximum of Rs.10 lakh|
|ICICI Lombard||Personal Protect Policy||18 – 80 years||Individual Plan||Sum insured up to a maximum of Rs.25 lakh|
|HDFC ERGO||Personal Accident Insurance Policy||Up to 65 years||Individual/Family Floater Basis||Sum insured up to a maximum of Rs.15 lakh|
|IFFCO-Tokio General Insurance||Personal Accidental Insurance Policy||5 – 70 years||Individual/Family Floater Basis||
|Reliance General Insurance||Reliance Personal Accident Plan||Adults: 18 years and above Children: 5 – 25 years||Individual/Family Floater Basis||
|Royal Sundaram Alliance Insurance||Individual Personal Accident Policy||5 – 65 years||Family Floater Basis||Sum insured up to Rs.10 lakh|
|Bajaj Allianz General Insurance||Personal Accident Policy||Proposer and spouse: 18 – 65 years Children: 5 – 21 years||Family Floater Basis||
|Universal Sompo General Insurance||Individual Accident Policy||5 – 75 years||Individual/Family Floater Basis||
|Bharti AXA Health Insurance||Personal Accident Insurance Policy||8 – 70 years||Family Floater Basis||Sum insured up to a maximum of Rs.30 lakh|
The Personal Accident Premium Plan from Apollo Munich offers financial security to the policyholder’s family, if the insured meets with an accidental death or suffers from injuries due to the accident. The entry age for this policy is 91 days and the maximum age at entry can be 69 years. While the maximum sum insured for individuals below the age of 69 years is Rs.5 crore, if one is renewing the policy after 70 years, the maximum sum insured is capped at Rs.5 lakh. The plan can be purchased on an individual basis, or for the proposer’s family, i.e., the proposer’s spouse, dependent parents and children. The cover can come in handy if the insured suffers from accidental death, permanent disablement, broken bones, etc.
This plan offers many benefits, including a lump sum payout if the insured meets with an accidental death, permanent (total/partial) disablement, incurs medical expenses as a result of the accident, total temporary disablement, etc. Further, this policy also provides an education benefit to the policyholder’s children, if they meet with a serious accident. This is a renewable annual policy. The minimum and maximum age at entry is restricted to 91 days and 69 years, respectively. The cover can be bought on an individual basis or on a floater basis, where the policy can be extended to the proposer’s spouse, dependent children and dependent parents.
The Personal Accident Policy from ICICI Lombard is an individual plan, which offers a cover against death caused due to accident and total permanent disablement. Further, the policyholder can purchase an additional cover to receive a reimbursement for hospitalisation expenses and receive a daily cash allowance for every day that the insured is hospitalised. The policy can also be purchased for one’s family members, separately. Policy buyers can choose a policy tenure of 1 year, 3 years, or 5 years, and can renew this policy for life. A sum insured of Rs.3 lakh, Rs.5 lakh, Rs.10 lakh, Rs.15 lakh, Rs.20 lakh, or Rs.25 lakh can be opted for.
This policy provides financial security in case the policyholder meets with an accident that causes death, total/permanent disability, severe burns, or broken bones. The policy also covers ambulance charges. The minimum sum insured is Rs.2.5 lakh and the maximum sum insured is Rs.15 lakh. The policy can be purchased by any individual under the age of 65 years. The key benefit of this plan is that the policy benefits and cover will apply to you even when you are travelling abroad.
The Individual Accident Insurance Policy from IFFCO-Tokio provides the policyholder or the nominee a range of benefits, including an education benefit, an employment benefit, a cumulative benefit, and an ambulance benefit if the policyholder were to meet with an accident that causes untimely death, loss of eyesight and/or limbs, or permanent/temporary disability. The plan can be purchased on an individual basis or on a family floater basis. The minimum and maximum age of entry for this policy are 5 years and 70 years, respectively.
The Reliance Personal Accident Plan is available as an individual plan or as a family floater plan. While the minimum age of entry for adults is 18 years, children as young as 5 years can be enrolled under the policy. Apart from the accident-related risks that are covered, the policy also offers benefits, such as an education fund for children of the insured, reimbursement of any medical expenses (provided an additional premium is paid), and reimbursement of expenses incurred for the transportation of the mortal remains. This policy provides worldwide coverage to the policy members.
This policy offers a risk cover against accidental death, permanent total disability, total partial disability, temporary partial disability, and accidental hospitalisation. The policy also provides additional benefits, such as reimbursing the expenses caused while transporting the mortal remains, and an education benefit for the children of the insured. The policy can be purchased for a period of one year, and is renewable. The policy can be extended to the proposer’s spouse and dependent children, and offers protection to members even when they travel abroad.
Policy buyers can choose three covers under this policy – a basic cover, a wider cover, or a comprehensive cover. The risk cover for each option chosen will vary. Apart from the risk coverage, the policy also offers other benefits, such as an education bonus for children, a cumulative bonus, and a reimbursement of expenses incurred for transportation of the policyholder’s mortal remains. This policy can be purchased on a family floater basis to cover the proposer, the spouse and dependent children. This is a yearly policy, and can be renewed every year.
The Individual Accident Policy from Universal Sompo is available on a yearly basis as an individual or a family floater plan. The policy can be used to cover any individual between 5 and 75 years of age. Individuals between 65 and 75 years can purchase new policies with a 20% premium loading. In addition to the risk cover, this policy offer members other benefits, such as reimbursement of costs incurred to transport the mortal remains, ambulance expenses, education benefit, loss of employment benefit, and cost of the article of clothing damaged in the accident, within the limits that are pre-set by the insurer.
The Personal Accident Insurance Plan from Bharti AXA covers accidental death, permanent total disablement, temporary partial disablement, medical expenses incurred due to the accident, double indemnity if the insured was travelling as a passenger and has suffered from total permanent disability or accidental death, and daily allowance when hospitalised. You can choose a sum insured of Rs.10 lakh, Rs.20 lakh, or Rs.30 lakh. The policyholder will also receive a cumulative bonus for all any claim-free year.
The general exclusions that apply to most personal accident insurance policies are listed below:
Most personal accident insurance plans cover the following:
Yes, many personal accident insurance plans are available on an individual basis or on a family floater basis. If you take up a plan on a family floater basis, you can extend the cover to your spouse, dependent children, and parents (in most cases).
No, most insurers do not provide cashless hospitalisation facility for personal accident policies. However, post your discharge from the hospital, you can file a reimbursement claim with the insurer, and have your expenses reimbursed.
Yes. Your health insurance policy will provide you a cover for any hospitalisation expenses that may arise, provided the expenses fall within your sum insured amount. However, personal accident insurance policies provide the insured with a lump sum payout, if he/she meets with an accident. These funds could safeguard you and your family from financial hardships.
Most policies come with a range of other benefits, apart from the risk cover, such as:
The steps to file a claim, if the insured has met with an accident, are:
Permanent Total Disability covers the following:
No, almost all personal accident policies offered by insurers in India are available only to Indian citizens. However, these policies also cover Indian citizens even when they are travelling abroad. International citizens cannot purchase personal accident policies that are offered by insurers in India.
Various factors can come into play when choosing the sum insured, such as the age of the policy buyer, annual income and occupation, whether the plan is bought on an individual or family floater basis, etc. Ensure you consider all these aspects before opting for a sum insured.
No, premiums paid towards personal accident policies are not eligible for tax benefits.
Yes, personal accident policies come with an exclusion criteria. Certain things like, accidents caused while driving under the influence of alcohol or while participating in extreme sports, etc. are not covered by most policies. For a plan-specific exclusion criteria, ensure you go through your policy document.
You can cancel your personal accident policy at any point during the policy term. If you cancel the policy during the free-look period (15 or 30 days, in most cases), the insurer will refund the premium amount that you paid, in full.
Most personal accident policies will provide you a daily allowance for a maximum period of 30 days, provided you are hospitalised after your accident.
Insurers will usually set the maximum age of entry for personal accident policies between 60 and 70 years. In some cases, if you purchase a new policy after the age of 60 or 65 years you might have to pay a higher premium, or the sum insured offered will be a lower amount.
No, medical tests are not a prerequisite to purchase a personal accident policy.