Group Personal Accident

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What does personal accident Insurance cover?

Personal accident insurance pays a fixed amount if an employee has an accident. Following are the standard coverage in personal accident insurance:

1. Accidental Death: Death because of a car crash, or any other unfortunate accident is covered in personal accident insurance. In case of death of insured due to an accident, compensation of a 100% sum assured is paid to the beneficiary of insured. This amount may also be paid to the company that pays the insurance

2. Permanent Total Disablement: Any accidental injury which makes it impossible for the insured to work for the rest of his or her life. Permanent disability refers to the permanent loss of functionality of both limbs or feet or loss of vision that makes the person unable to work. There is 100% payout of sum insured in case of permanent total disablement.

3. Permanent Partial Disablement: Any accidental injury which reduces the efficiency because of partial loss of functionality in one or more limbs without the chance of recovery or treatment. Permanent partial disablement such as loss of vision in one eye, knee injury, or nerve damage is covered only as per the sub-limit that can exist between 50 to 100% depending upon the terms of the policy.

4. Temporary Total Disablement: Any accidental injury which exists only on a temporary basis such as fracture is also covered with a specified sub-limit payout of the sum insured. In such cases, the insured will return to work eventually within a few days or months that too their original efficiency. In such cases, the payout paid may be weekly compensation of 1 percent of the sum insured for up to 100 weeks, depending on the type of policy.

5. Terrorism: Injuries afflicted because of terrorist acts can be covered in personal accident insurance. There are few insurance companies that do provide this cover so one needs to check out the terms of the policy before buying.

6. Child Education Grant: If the insured suffers from permanent total disablement or has with accidental death, an education grant benefit is provided to their children subject to two children if their age is below 25 years.

7. Additional Benefits: There are additional benefits such as ambulance charges, funeral expenses, hospital cash, and fracture cover available on payment of additional premium. One needs to check which insurance companies are providing these additional benefits and should consider including these in the policy.

Buying personal accident insurance is probably a small price to pay for peace of mind. One does not know what could happen tomorrow. In order to provide financial support to your family when there is death or total or permanent disability due to accidents, an accidental policy should be availed with the optimum sum insured and broader coverage.
This policy lets you face the unexpected with confidence and ensure a strong financial backup to your family during mishaps or loss of income because of disability or accidental death.

What does personal accident Insurance cover?

Also Read: 10 reasons to buy personal accident insurance

Case Study: Aman has bought a standard personal accidental insurance cover. He met with an accident and got a fracture in a leg which costed him around Rs. 20,000. His accidental policy does not cover fracture cost and hence he had to pay the whole amount. In order to save premium cost, Aman selected a standard personal accident cover leading him to bear the cost of additional expenses which otherwise would have been covered in a comprehensive personal accidental policy.
It is important to read coverage, exclusions, add-on cover and terms of personal accident policy while buying. Low-cost premium should not be the criteria to choose an accidental policy, one needs to seek the risk coverage and sub-limits associated with a policy as well.

What does personal accident Insurance cover?

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