Insurance coverage

Benefits and Features of Personal Accident Insurance Coverage

By Anshul STI (Update)


Personal accident insurance is useful for obtaining financial assistance for you and your family in the event of an accident resulting in death and bodily injury. Read on to understand the details

Prominent businessman and former chairman of Tata Sons Cyrus Mistry died in a road accident in Palghar district on Sunday while traveling from Ahmedabad to Mumbai. According to the prima facie details of the accident, Mistry’s car (which was driven by a well-known Mumbai gynecologist) attempted to overtake another vehicle from the left and lost control.

Although such accidents are regrettable, it is essential to understand that an accident can happen to anyone anywhere, even when driving at low speeds in safer areas. After such an accident, life can get worse afterwards and so it is crucial to have a reliable personal accident insurance policy in place.

A personal accident insurance policy will provide coverage against disability and accidental death.

What is personal accident insurance?

A personal accident insurance policy protects the insured against death or disability caused by an accident. It simultaneously provides financial assistance to dependent family members and relieves them at a crucial time. The compensation paid by an insurer depends on the impact of the accident, with different compensation for partial and permanent disability.

A personal accident insurance policy compensates three types of disability.

“First, total and permanent disability, in which the insured suffers significant and irreversible damage and cannot earn or live regularly. Second, partial and permanent disability, in which the insured suffers partial but irreversible damage which reduce his ability to lead a regular life to Finally, total and temporary disability, where the policyholder suffers physical damage that temporarily prevents him from leading a normal life,” said Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking Ltd.

Why take out personal accident insurance?

In a country like ours where accidents have moved beyond the roads, devastating lives in places like construction sites, trails, etc., personal accident cover is a must. As one of the most effective ways to ensure personal safety, personal accident coverage protects finances in the unfortunate event of an accident, Naidu said.

In addition, no matter how severe the impact of an accident, it could harm the lives of dependents. Therefore, getting personal accident cover can give you the edge in such situations and protect your family.

Moreover, in addition to disability and death cover, several bodily accident covers provide financial support to the insured. The idea behind this consideration is to financially empower a fully or partially affected person after an accident. Although personal accident cover may not be the most commonly chosen insurance in India, it is one of the best ways to get vital security.

How does personal accident insurance work?

According to Naidu, the payout for an insured depends on the total sum insured and the impact of the accident. Thus, accidents resulting in death or permanent disability receive full compensation, while accidents resulting in partial damage are covered according to the severity of the disability.

“It is advisable to go through a policy’s agreement carefully to understand its payout,” he said.

Apart from its basic function, individual accident cover could be integrated with add-ons to provide comprehensive support to the insured. Some popular add-ons for personal accident coverage include hospital cash benefits, ambulance expense coverage, and more. These add-ons further complement personal accident coverage with an extended safety net.