Why personal accident cover is the need of the hour?

Posted on: Feb 10, 2022 | | Written by:

Why personal accident cover is the need of the hour?

Published on February 09, 2022. EST READ TIME: 3 minutes

They say accidents are waiting to happen. There’s no way of predicting when one might happen, and even if you are driving safely, you must still depend on the driving of others on the road to stay accident-free. And sometimes, even that may not be enough, as a momentary lapse of concentration on the part of any party, can be enough to trigger an accident. India accounts for the highest percentage of road accidents in the world, averaging nearly 1,230 accidents every day.

Because they come without warning, it’s challenging to come to terms with it. And accidents can range from the minor scratches to severe destruction, resulting in disablement or death. Which is why, having a personal accident cover is essential.

Being prepared is a wise move

Firstly, to prevent accidents, you can do your bit by driving sensibly on the roads and following all the laws of traffic. Secondly, you can avail insurance to financially protect yourself and your family, and any third-party person, to minimise disruption in your life. While a third-party liability insurance is mandatory, the comprehensive insurance policy is almost always the recommended choice. And of course, you must have personal accident cover.

What is personal accident cover?

This is a compulsory health insurance component of motor insurance, providing financial coverage against accident-related bodily injury, disablement, or even death. Furthermore, it covers the hospitalisation costs, pre- and post-hospitalisation costs, while also providing a daily cash allowance during your recovery, depending on the policy. Its purpose is to ensure financial security for you, the policyholder, and your family members (dependents) during difficult times. Currently, personal accident covers must provide at least Rs. 15 lakhs as the sum insured.

What is included in a personal accident cover?

While you must avail a personal accident cover if you intend to ride a vehicle, it also pays to know what exactly is included under your plan, so you’re well aware of the action to take in case of an untoward incident.

• Accidental death

The insurer provides up to 100% of the sum insured to your nominees in case of an accidental death, to help your kin make up for the loss in income.

• Permanent total disability

In the event you suffer a permanent total disability as a result of an accident, the insurer will provide benefits based on the sum insured.

• Broken bones

Broken bones restrict mobility, and therefore, contribute to a loss in income. It also incurs medical costs, which are covered by the insurance policy.

• Burns

If you encounter second or third degree burns because of an accident while commuting in common transport carriers, you will be entitled to policy benefits depending on the sum insured.

• Ambulance costs

Ambulances can cost a significant amount of money, but timely care is critical. Luckily, the personal accident cover takes care of the cost of the ambulance if you have experienced life-threatening injuries.

• Hospital cash

When you are in the hospital, there are other ancillary expenses to take care of, including those incurred by family members who visit you and bills that are not covered under the insurance plan. The hospital cash allowance comes in handy then.

What is not included in the personal accident plan?

As is the case with any insurance policy, there are a few scenarios that are not covered by the plan. Injuries due to adventure sports, or any dangerous activity, cosmetic surgery, war, participation in defence operations, or even sexually transmitted diseases are not covered under the personal accident insurance plan. Furthermore, engaging in any illegal activity, such as driving under the influence of drugs or alcohol is not covered.

Why should you buy a personal accident cover?

Firstly, if you are going to drive a vehicle, a personal accident cover of up to Rs 15 lakhs is mandated by law. But more importantly, it provides crucial financial coverage against unforeseen circumstances. Not only does it help you, the insured, but also your family members who could do with the financial coverage.

Conclusion

All in all, personal accident cover provides lifelong coverage and is independent of your age and lifestyle habits. So, the premium remains the same during the policy tenure, providing the perfect incentive for availing a personal accident cover. Avail one, not because it is compulsory, but because it is a wise decision, financially.

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

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