Why personal accident cover is a must!

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Road accidents cause thousands of deaths in India, affecting the victim’s family economically and emotionally. Sometimes the accident leaves the victim incapcitated.

The Government data shows that road accidents in India have claimed 19 lives every hour in 2022. And while a personal accident policy would not reduce the victim’s family grief, it would certainly taken care of his and his family’s financial needs.

Your hospital bills can be taken care of by your health insurance policy. In case of death, a lump sum will be paid to your chosen nominee by your life insurer. But what sets an accident policy apart is the coverage it offers in case the policyholder survives, but is rendered disabled, either fully or partially. Additionally, it is also cheaper compared to other policies.

There are many ways you can get a personal accident (PA) policy. You can bundle it up with a comprehensive motor insurance policy. You can also take it as a rider along with your life or health insurance plan. Otherwise, you can take a standalone cover that provides you protection from all types of accidents.

However, accidental coverage under comprehensive motor insurance will not be effective if you’re not driving or traveling in the vehicle. Moreover, the PA cover under motor insurance is typically limited to Rs 15 lakh.

That is why Anshul Bohara, Product Head, Go Digit General Insurance notes that a standalone PA policy is better, since it offers continuous protection and coverage beyond vehicular accidents, safeguarding you against all accidents.

He says that whether you are driving your own car, are a passenger in another vehicle, or simply a pedestrian, this policy offers comprehensive protection. It also covers injuries/ fatalities resulting from accidental fire or drowning. Further hospitalisation and OPD expenses due to accidents can also be covered under a standalone PA policy

Apart from this, a PA policy also offers protection against permanent/temporary, partial or total disability. Some insurers also offer additional coverages like children education cover, loan waivers, loss of income cover, burns and fracture cover, among others. Generally, the sum insured under PA policy is capped at 10x the annual income of the policyholder.

Estimatedly, the premium for a basic PA policy with a sum insured of Rs 15 lakh can cost Rs 1,127. You can also bring in additional covers like home hospitalization, coma benefits, lifestyle modification benefits, loss of income benefit, children education, burns and fracture cover, amongst others.

For instance, Aditya Birla Capital’s Activ Assure Personal Accident Plan offers coverage of up to 12 times of annual gross income for an earning member. It also offers 100% payouts in case of accidental deaths and permanent disabilities due to accidents. For a cover of Rs 20,00,000 for an individual aged between 26-35, the annual premium would be Rs 9,549.

Similarly, the basic plan of Manipal Cigna Manipal Protection Accident-Care charges an annual premium of Rs 2,089 for offering coverage worth Rs 10,00,000. The more number of riders you add, the higher the premium payable goes.

In terms of what things you should remember, CFP Bhakti Rasal notes that it is important to check for exclusions, claim processes and additional benefits like rehabilitation expenses and global coverage while going for a PA policy. Notably, injuries sustained while under the influence of alcohol or drugs are excluded from coverage.

The sum insured you choose should also increase in direct proportion to the risks levels of your profession. However, experts still suggest opting for a minimum of Rs 15-20 lakh worth of cover, which is standalone, and not as a rider.