3 FAQs on Personal Accident Insurance - Answered

 

personal accident insurance, also called as accidental insurance, is a type of policy that covers the policyholder against the financial consequences of an accident. Even though we may be prepared, we cannot foresee what events will occur in our future. To ensure that your loved ones are covered against the financial brunt of such unpredictable events, it is important to have a personal accident insurance policy. However, many people often confuse accident insurance with other types of insurance policies as there is a lack of concrete knowledge regarding this topic. 

 

To help out in this regard, we look at 3 major FAQs regarding the policy and answer them for your benefit. 

 1. How does the personal accident insurance policy cover the policyholder? 

 

Accident insurance policy is a benefit-based policy, that is the policyholder gets a lump sum payment when they undergo an unfortunate event mentioned in the coverage section of the policy. Let’s take a look at the coverage offered by leading insurers. 

 

I. Accidental death 

 

If the policyholder suffers an accident that leads to their death, the insurer is liable to pay the sum insured to the nominees/dependants as specified in the insurance contract.

 

II. Permanent total disability 

 

If an accident leads to the policyholder suffering from a permanent total disability, the insurer will be liable to pay the benefit pay-outs to the policyholder as per the conditions of the personal accident insurance policy. This coverage is valid even when the policyholder suffers a disability after a year as a result of the accident and not immediately post it.

 

III. Permanent partial disability 

 

If an accident leads to the policyholder suffering from a partial disability permanently, they will be eligible to receive the benefit pay-outs as specified in the accident insurance policy. 

 

IV. Temporary total disability 

 

If the policyholder is rendered totally disabled but in a temporary manner such that they can get well soon and return to their earlier state, the insurer will have to make benefit pay-outs to the insured party according to the conditions of the accident insurance policy. 

 2. How is the personal accident insurance different from life insurance or other regular medical insurance? 

 

A personal accident insurance policy is different from life insurance in the sense that it offers financial support to the policyholder when they undergo an accident that can hamper their ability to function normally and earn for their dependents. A life insurance policy, on the other hand, offers financial aid only in the case of death. 

 

Similarly, your regular family medical insurance will provide reimbursement when you get hospitalized for treatment. To compensate for the loss of income during your recovery, however, you will require the lumpsum pay-outs of an accident insurance policy. 

 

3. What additional benefits does a personal accident insurance policy provide?

 

The additional benefits you will get with an accident insurance policy depends on the insurer. Some insurers also offer to cover the policyholder’s dependent children’s education expenses. An accident can lead to severe consequences including loss of employment. This should not stop the children from continuing their education. Hence, the personal accident insurance policy covers those expenses too. 

 

Do bear in mind that the features of a personal accident insurance policy will depend upon the insurer and may differ as per several factors. 

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