10 Things to Know about Personal Accident Policy

Posted on: Apr 19, 2022 | 3 Min | Written by: HDFC ERGO Team

10 Things to Know about Personal Accident Policy

As deadly as it sounds, an accident can lead to bodily injury, disability and in worst case even death. Though death is inevitable, you can certainly get financial protection for yourself and your family with a personal accident policy. A personal accident cover in car insurance policy is a type of insurance policy that offers you protection against death or disability caused due to an accident. In case of death due to an accident, the policy pays out a lump sum amount to the nominee of the policyholder.

If you commute daily by bike or car, then it is important you are aware of the below 10 highlights of personal accident policy

• The policy compensates the policyholder in case of permanent or partial disability caused due to an accident.

• The policy offers 100% sum insured to the kin of the policyholder on death caused due to an accident.

• The primary purpose of a personal accident policy is to help the insured’s family make up for the loss of income caused due to the accident of the insured.

• Personal accident policy offers you lifelong coverage; it is renewable.

• The premium for a personal accident policy stays the same throughout the term of the policy. Your age and lifestyle habits have no impact on the same.

• The policy does not offer coverage for death caused due to an illness.

• Under the personal accident policy, the nature of the accident does not matter. Everything including road accident or broken bones due to having a staircase fall is covered under the policy. It simply provides benefits in case of any accidents resulting in broken bones.

• Daily cash allowance is given to the policyholder in case of an accident that requires hospitalization.

• Few personal accident policies also cover ambulance costs to help the policyholder reach the hospital in case of an accident. This coverage may differ from insurer to insurer.

• Permanent disability such as loss of limbs or paralysis and even temporary disability such as a fracture is covered.

Things that are not covered under a personal accident policy

Below factors are commonly excluded from coverage provided under personal accident policy.

• An accident caused due to adventure sports activities is not covered.

• Self-inflicted injuries sustained due to suicide attempt is not covered

• An accident that is a result of war is not provided coverage for.

• Coverage is not provided if the accident is caused due to participation in defense operations.

• An accident caused due to participation in any hazardous activity.

• Accidents caused due to driving under the influence of drugs or alcohol is not covered.

The above coverage is likely to vary from insurer to insurer. Hence, it is important you read the policy documents carefully before purchasing.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Met with a car accident? Here is what you should do!

Everything you need to know about Saral Suraksha Bima: IRDAI’s new standard personal accident cover

Why personal accident cover is the need of the hour?