All you want to know about accidental insurance cover!

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The graph of road accidents on Indian roads has been increasingly speeding ahead. As per recent data from Ministry of Road transport, in 2022, India saw 4.61 lakh accidents, in which 1.68 individuals lost their lives, while 4.45 lakh were seriously injured. Compared to 2021, there was a 12% rise in such accidents.

Road accidents can happen with anyone. Moreover, to meet with an accident, it is not necessary for you to be in the driving seat. You can be walking and yet, have an accident. To cover such risks, having personal accident insurance is a good option, since this can prove helpful for you and your family in times of need.

Personal accident policy covers the death, temporary, permanent and partial disability of the policyholder. Upon the death of the policyholder, the sum insured is paid to the nominee. In case of disability, depending on its gravity, insurance payouts are made. Many companies offer regular monthly income for up to 10-20 years in case an individual becomes permanently disabled. Other companies take a step ahead and offer financial coverage for children’s education and expenses towards legal proceedings against the culprit.

Accident cover is offered in 3 ways. First, there’s life insurance. Companies offer this cover as a rider along with term and traditional policies. Second, most companies also offer group accidental insurance to their employees. Third, almost all general insurance companies are separately selling personal accident policies, which are quite popular and expansive in terms of risks covered.

Talking about premiums, personal accident insurance is far cheaper as compared to other insurance policies. The policy premium depends on the age, occupation and medical history of the policyholder. If you work in high-risk industries like pesticides or chemical manufacturing, you might be subject to a higher premium.

On an average, the annual premium of an accident insurance policy touches Rs 140 per Rs 1,00,000 of coverage. So, if you buy a policy with a cover of Rs 20,00,000, you will have to pay Rs 2,800 as annual premium.

All general insurance companies sell accident policy both online and offline. You can buy such policies via online aggregators like Policybazaar. You can also seek the help of an insurance agent in this regard. An accident cover should also be chosen like a term insurance. This means that its cover should be at least 10 times your annual income.

If the policyholder loses their life due to their mistake, the company will not pay any claims. Similarly, injuries or death during riots, war or disability since birth will also not be covered under this policy. If the policyholder was under the influence of alcohol and met with an accident, the company will not honor any claims. Similarly, any bodily injury sustained during adventure sports will also not be covered under such policy.

Personal finance expert Jitendra Solanki says that accidents can happen with anyone, and at any time. In such a case, every earning individual must have a personal accident cover, along with term insurance. It is not advisable to rely solely on the cover provided by group insurance or riders. The scope of coverage of such policies is also extensive. A separate policy can be helpful to your family during stressful times. Some companies also cover the wife and children of the family’s head in their policy. Under this, the wife gets 50% of the amount given to the policyholder, while children get around 25-30% of the amount paid to the policyholder. However, this requires paying extra premiums.

So, if you have not signed up for an accident cover, do so at the earliest.