Health Insurance

Is your health insurance enough to cover accidents?

While many of us are familiar with life insurance cover and health insurance, we have a limited to no understanding towards personal accident insurance.  To put it in simple words, a personal accident insurance scheme provides cover to the policy holder against any kind of accident or disability caused from it.  It is also worth noting that most health insurance do not cover accidents. So, if you were to be asked – is your health insurance cover enough to cover accidents? The answer to this question is probably a no.

Why Individual Personal Accident Policy Relevant?

Not many people pay heed to taking up personal accident insurance as they are not aware about the existence of such a policy or probably don’t think it’s important. However, if you consider the scenario of road safety in India, taking up individual accident policy makes absolute sense. Global status report on road safety 2013 submitted by the National Crime Records Bureau, Ministry of Road Transport & Highway, Law commission of India, revealed the following information with regard to road mishaps in the country.

  • More than 1, 37,000 people were killed in a road accident in 2013 alone that is more than the number of people killed in all our wars put together.
  • At least one death every 4 minutes is caused due to a road accident in India.
  • Nearly 1214 road crashes occur in India every single day.
  • Nearly 377 people die as a result of road accident in India daily, which is equivalent to a jumbo jet crashing every day.

Road safety in India is a real challenge, and there is a need for greater citizen and government participation to ensure that traffic laws are followed and roads are made safer and motorable. However, considering the given situation, SecureNow, India’s trusted brokerage firm believes that it is absolutely mandatory to buy personal accident insurance online or through a broker so as to protect yourself and your family against unforeseen adversity arising due to an accident.

While protection from road mishaps is one of the biggest advantages of personal accident cover, the benefits of such scheme is not just limited to that and is extended to accidents caused from fall, foot injury, burns, electrical accident and even occupational hazards etc. A comprehensive scheme is likely to provide protection to the policyholders and their family members against any such risks or hazards.

What is the cost of Individual/Personal Accident Insurance Policy?

To begin with, the cost of taking up personal accident insurance policy is very affordable.  With an annual premium of as low as Rs. 500 to Rs. 800, you can take up an individual accident insurance policy that provides coverage against accidental death or permanent total disablement (PTD) caused due to an accident. The premium amount is however subject to change and is largely determined by the plan you have opted for.

For example, if you have taken a policy that provides cover against partial, temporary or total disability, the premium for such schemes is likely to be higher.  There is also a difference in the payouts and depends upon how the accident has impacted the earning capacity of the policy holder.

The premium cost is also determined by the nature of a person’s job. For instance, those with a sedentary work life- office goes who sit on the desk and work are likely to pay less premium is comparison to those individual who have high risks jobs such as a pilot or a factory worker.

What does such a policy cover?

The scope of the policy cover is determined by the extent of the damage incurred by the policy holder, such as:

  • Accidental death: If an accident results in untimely death of the policy holder, the ensured sum shall be paid to the nominee.
  • Permanent total disablement: If an accident results in permanent total disablement, the policy holder will receive the entire ensured sum of money.
  • Permanent partial disablement: If an accident causes a permanent disablement, which is partial in nature the insurer will get a certain amount from the insured sum of money which will be decided based upon the extent of the damage or loss. For example, to what extent the permanent partial disablement has impacted the earning capacity of the individual.
  • Temporary total disablement: This is applicable when the accident has caused a total disablement but is temporary in nature. For an instance, a fracture in the leg will obviously restrict the movement of a person, but is temporary and eventually the person will be able to recover. In such a case, the person will get weekly income benefits till a certain period of confinement (usually up to 90 to 100 weeks).

 Who can opt for Personal Accident Insurance Policy?

In India any person falling in the age group of 18 years to 65 years can opt for individual or personal accident insurance policy.  Additionally, the cover can also be extended to dependent children between 5 years to 21 years.

In conclusion

We live in an uncertain time wherein accident can happen anytime, anyone. The idea is not to ensue fear psychosis, instead encourage caution. The aftermath of an accident can be devastating for an entire family and it is best to be prepared in advance. Although human life is irreplaceable, monetary compensation in form of payouts from such insurance schemes does provide relief to a family.  Therefore, for the protection of self and your family you can buy personal accident insurance online which is both convenient and safe.