Five important things you should consider before buying personal accident cover

A personal accident policy is a must-have in your portfolio. While a personal accident policy is a fairly simple product when it comes to settling death claims, this is not the case as far as compensation for disabilities is concerned. Laypersons are likely to find it difficult to grasp the intricacies of pay-outs under permanent total and partial disabilities, which could lead to heartburn at the time of claim settlement. This policy does not promise any returns during the policy tenure or at maturity, but compensation in case an accident leads to the insured’s death or disability.

Following factors will put you on the right track and help you get protection against fatal injuries, accidental death, permanent total disability and total temporary disability due to accidents. Consider them while buying personal accident policy:

Type of Plan

Personal Accident cover is available on both individual and family floater basis. If you want to secure your family as well against accidental risks, the family floater is right for you and it saves the cost and time because renewals are going to happen on the same date for everyone. An individual policy is good for those who indulge in risky adventures; a person who travels frequently must insure himself against the accidental risky proposition.

Sum assured and benefits

Select an appropriate sum insured by assessing your risk category and how prone you are to accidental risks. Sum insured should be selected on the basis of income, risk group and occupational hazards. Benefits in terms of coverage play a key role in selecting a personal accident insurance. Go with an accidental policy that has broader terms of coverage and benefits attached to an appropriate sum insured.

Add-on Covers

Personal Accident insurance has various range of extensions such as fractures, accidental hospitalization expenses, ambulance allowances etc. One of the most important extension covers is child education benefit which adds value to a typical personal accident insurance policy. Assess your risk profile and include add-on covers that are highly required and affordable.

Premium

Personal Accident policy has low premium rates, still one should always check that the policy is reasonably priced. There should be a perfect match between the premium charged and the coverage offered. It is a quite affordable policy and one should always look forward to adding extensions within affordability and limits so as to avail its comprehensive benefits.

Exclusions

Read carefully the list of exclusions of the policy and look for the covers which should be present in the policy because some of the exclusions can be covered by paying a little extra on premium. List of exclusions are specified in the policy wordings which is very important and before buying this policy, one should read it thoroughly.

Personal Accident policy provides worldwide coverage and operates on 24X7 basis. Personal accident should be the first policy in your risk management portfolio and if you are in a field job, it is the most important insurance to safeguard yourself against any mishaps. The Insurance Regulator has now proposed a standard personal accident policy that will offer comfort to policyholders as they would know that the clauses are uniform across companies.

(The writer is Managing Director, Shriram General Insurance. Views expressed are personal)