4 Reasons You Should Have a Personal Accident Insurance Policy

 

A personal accident insurance policy covers you against unforeseen accidents. In a day and age where accidents are common, it becomes important to ensure that one is financially prepared when such events strike. This policy is ideal for those who have dependents to take care of, as a bad accident can affect one’s ability to earn and support their family. Even so, many people do not think this type of policy is important to have as a part of their insurance portfolio. 

 

In this article, we give you 4 reasons you should have personal accident insurance. 

 

1. Your health insurance coverage may not be enough 

 

Many people think that their Mediclaim policy will be enough when they suffer an accident. However, one needs to keep in mind that Mediclaim policies only help pay for the hospitalization expenses. The expenses paid would also be limited to the sum insured of the policy. In case the accident is severe and requires several procedures to recover the patient, the costs may go quite high. Personal accident insurance covers the patient for medical as well as out-of-pocket expenses that they incur after an accident. 

 

2. Peace of mind regarding family security 

 

With personal accident insurance in place, you can rest assured that your family will not suffer any major financial setbacks if you undergo a bad accident. The lumpsum pay-outs provided by the policy can act as an income replacement and ensure that your household finances continue running smoothly. 

 

Along with an accident insurance policy, you should also ensure the safety of your family with a Mediclaim for family. This way, your family stays secure against the financial aspects of their health issues even when you have undergone a bad accident. You can even use the lumpsum pay-outs of your PA policy to pay for the premiums of the Mediclaim for family. 

 

3. Your children’s education will be taken care of

 

There are some insurance companies that provide children’s education benefit as a part of their personal accident insurance policies. The education of children must go on even when an accident strikes and a financial crisis occurs. Making sure the children go to school daily and that their fees are paid on time may bring a sense of normalcy during a difficult situation. It also ensures the injured policyholder that they do not have to worry about the finances regarding their dependent children’s education as the insurance company is taking care of it. Do bear in mind that this coverage is subject to limits as mentioned in the policy.

 

4. A PA policy is mandatory to have if you own a vehicle

 

As per the India Motor Tariff, 2002, it is mandatory to have a PA policy if you own a vehicle. The law also states that the minimum sum insured of the mandatory personal accident insurance policy should be Rs 15 lakhs. Usually, PA policies are offered alongside vehicle insurance policies for the safety of the drivers and others. If you already have a PA policy from your health insurer, you would be exempted from purchasing another one when you buy a new vehicle and a new vehicle insurance policy.

 

Different insurers may have different features within their personal accident insurance policies. Ensure to research well before you make any financial decisions.