Personal Accident

Personal Accident Policy

Crisis and disaster can affect our lives at anytime and anywhere. An accident is one such nightmare that can break you emotionally, physically and financially too. An accidental injury needs immediate medical attention and hospitalization. Even if the accident is not fatal and causes severe injuries or physical disability, it may result in a loss of income and unexpected financial loss. A Personal Accident Insurance Policy is the only way to deal with this unforeseen crisis. 

A good Personal Accident Insurance provides you with a lump sum payment in the event of Death, Total Permanent Disability and Partial Permanent Disability resulting from an accident. 

Need of Personal Accident Policy:

1) A very cost-effective insurance tool to keep your family safe and financially secured in case of accidental death or disability 

2) An accident may not result in death but it may just leave you without the ability to earn, in such a scenario Personal Accident Policy is really crucial to help you cope with the sudden financial crisis. It helps bringing your life back on track.

3) The best gift you can give your family to lead a normal life even after a tragedy.

Coverages offered under a Personal Accident Policy

Below given are the coverages offered under a Personal Accident Policy:

  • Accidental Death:
  • Accidental Total Disability: This disablement is permanent and irrecoverable in nature and is absolutely total. Due to this disability the insured person is prevented from engaging into any gainful employment. E.g. Paralysis
  • Accidental Permanent Partial Disability: This disablement is similar to Total Disablement but partial in nature. E.g. Loss of one eye sight, loss of one finger, etc.
  • Temporary Total Disability: This is a disablement which is total but for a temporary period.

Let us understand how the benefits are paid under the personal accident policy. Below given is a specimen table of benefits on the basis of the sum insured of Rs. 5 Lacs which sum insured is selected for the purpose of illustration:

Contingency

Amount paid as Compensation

Accidental Death

100% of the Capital Sum Insured (Rs. 5 Lacs)

Loss of 2 Limbs or both eyes or one limb and one eye

100% of Capital Sum Insured (Rs. 5 Lacs)

Loss of one limb or one eye

50% of Capital Sum Insured (Rs. 2.5Lacs)

Permanent Total Disablement other than the above (E.g. Paralysis)

100% of Capital Sum Insured (Rs. 5Lacs)

Permanent Partial Disablement

% will be paid as per the chart in the policy wordings

Temporary Total Disablement

Weekly payment of Rs. 5000 (i.e. One percent of the capital sum insured) subject to a maximum Limit or 100 weeks.

Please Note: Following varies depending on the insurance company you are choosing.

Additional Benefits Offered under the Personal Accident Policy are:

Education Grant – In the event of the death or permanent total disability, this policy shall pay for the education expenses for the dependent children (Max 2, upto the age of 25yrs), in addition to the Capital Sum Insured.

Hospitalization Expenses due to an accident: Any expenses incurred for hospitalization due to the accident shall be covered under the policy up to the limit specified.

Transportation of Mortal Remains: Expenses incurred for transporting the mortal remains of the insured from the place of the accident or from the hospital to the residence or cremation ground shall be covered.

Emergency Ambulance: Expenses incurred on an ambulance used to transfer the insured person to the nearest hospital will be covered.

How Much Personal Accident Insurance should one buy:

1) A PA policy is recommended to all adults including housewives. One must buy a Personal Accident Insurance as soon as you start earning. Young drivers and frequent travelers  should essentially cover themselves with this policy

2) A Personal Accident cover should ideally be 100 to 120 times of your monthly salary.

3) The premium and, the policy type and cover also depend on the city you live in, your nature of job and also the risk involved in your job. If you are into a profession which has higher risk, the amount of cover would be subject to Insurance Company norms but a ball park cover could be 40 -50 times on monthly income 

4) If you have a job that does not involve risk then, the multiple can go as high as 120 times your monthly income 

For example: if your monthly salary is Rs 10,000 per month, the cover should be more than Rs 10 lakh. In your absence, the family can invest Rs 10 lakh (sum assured) in a fixed deposit to earn an interest of around Rs 7,000-Rs 8,000 a month-to manage the loss of income.

Rating Factor:

In a Personal Accident Policy, the premium is determined on the basis of the Occupation. In general terms, exposure to accidental risk at home or at the office is the same. But the risk associated with the occupation may vary depending on the nature of the job. For Eg. A person working as an Accountant is less exposed to the risk as compared to a Civil Engineer or Supervisor working at site where a building is getting constructed. 

Occupation is classified into 3  groups:-

Risk Group 1: Accountants, Doctor's, Lawyers, Architects, Consulting Engineers, teachers, Bankers, Person engaged into administration functions, persons primarily engaged in the occupation of similar hazards.

Risk Group 2: Builders, Contractors and Engineers engaged in superintending functions only, veterinary doctors, Paid Drivers of motor cars and light motor vehicles and persons engaged in the occupation of similar hazards and not engaged in manual labour, Cash Carrying Employees, Garage and Motor Mechanics, Machine Operators, drivers of Truck or lorries and other heavy vehicles, Professional Athletes and Sportsmen, etc.

Risk Group 3: Persons working underground mines, explosives, Kockers, Circus Personnel and persons engaged in occupations/ activities of similar hazards. 

Exclusions under a personal Accident Policy

No Compensation will be payable under the personal accident policy due to the below reasons:

  • From intentional self-injury, suicide or attempted suicide
  • Whilst under the influence of intoxicating liquor or drugs
  • Engaging in aviation whist mounting into, dismounting from or travelling in any aircraft other than as passenger (fare paying or otherwise) in any duly licensed standard type of aircraft anywhere in the world.
  • Directly or indirectly caused due to venereal diseases or insanity

 

List of Companies that offer a Personal Accident Plan:

Insurer

Plan

Apollo Munich Health Insurance Company Limited

Apollo Munich Personal Accident Plan

Bajaj Allianz General Insurance Co. Ltd.

Premium Personal Guard Policy

Bajaj Allianz General Insurance Co. Ltd.

Personal Guard - Accident Health Insurance

Bajaj Allianz General Insurance Co. Ltd.

Sankat Mochan Policy

Bharti AXA General Insurance Company Limited

Smart Individual Personal Accident Insurance

Cholamandalam MS General Insurance Co. Ltd.

Chola Accident Protection Plan

Cigna TTK Health Insurance Company Ltd.

Lifestyle Protection-Accident Care Plan

Future Generali India Insurance Company Limited

Accident Suraksha - Personal Accident

HDFC ERGO General Insurance Co. Ltd.

Personal Accident Insurance

ICICI Lombard General Insurance Co. Ltd.

Personal Protect Plan

IFFCO Tokio General Insurance Co. Ltd.

Individual Accident Insurance Policy

IFFCO Tokio General Insurance Co. Ltd.

Individual Personal Accident Grand Policy

L&T General Insurance Company Limited

My:health Personal Accident Insurance

Max Bupa Health Insurance Company

Health Assurance - Personal Accident Policy

National Insurance Co. Ltd.

Individual Personal Accident

National Insurance Co. Ltd.

National Hero Accident Suraksha Policy

New India Insurance Co. Ltd.

Personal Accident Policy

New India Insurance Co. Ltd.

Rasta Apatti Kavach (Road Safety Insurance)

Oriental Insurance Co. Ltd.

Personal Accident Individual Policy

Oriental Insurance Co. Ltd.

Janata Personal Accident Policy

Oriental Insurance Co. Ltd.

Nagrik Suraksha Policy

Raheja QBE General Insurance Company Limited

Individual Personal Accident Policy

Religare Health Insurance Company Limited

Secure - Personal Accident Policy

Royal Sundaram Alliance Insurance Co. Ltd

Individual Personal Accident Policy

SBI General Insurance Company Limited

Individual Personal Accident Policy

Shriram General Insurance Company Limited

Personal Accident Policy

Star Health and Allied Insurance Company Limited

Acciddent Care Individual Insurance Policy

Tata AIG General Insurance Co. Ltd.

Accident Guard Policy

Tata AIG General Insurance Co. Ltd.

Injury Guard Policy

Tata AIG General Insurance Co. Ltd.

Income Guard Plan

Tata AIG General Insurance Co. Ltd.

Secured Future Plan

Tata AIG General Insurance Co. Ltd.

Secured Income High Policy

Tata AIG General Insurance Co. Ltd.

Maharaksha-Personal Injury Policy

United India Insurance Co. Ltd.

United India - Personal Accident Policy

Universal Sompo General Insurance Co. Ltd.

Individual Personal Accident Policy

Universal Sompo General Insurance Co. Ltd.

Janta Personal Accident Policy

 

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