“Life is Uncertain”, one may not be able to anticipate any eventuality which may arise in the future, but can always prepare him/her self against any such scenario. Thereby, planning for the future is very important, especially “Financial Planning” as it would ensure that our future goals and obligations do not suffer due to our own shortcomings. Personal Accident Insurance plan is one such financial cover which is often ignored while chalking out a “Financial Plan”. More so, as no Tax Benefit is available on premium paid for these plans, Individuals tend to neglect such insurance cover.

Life Insurance and Health Insurance coverage is very important for any Individual, but very few of us are aware about Personal Accident Cover. Personal Accident Insurance provides financial cover in case of death or disability of the insured due to accident. It may sound similar to the Term (Life) Insurance or Health Insurance cover but Personal Accident Insurance is a supplement to both such covers.

Personal Accident Insurance covers are provided by all General Insurance Companies. The Personal Accident Insurance is one of the most affordable insurance plans which provide an Individual with additional cover at minimal cost.

Need for Accident Insurance Plan

Life Insurance will provide lumpsum benefit to the nominee, in case of death of the policyholder while Health Insurance will take care of medical expenses in case of injury. But what if any accident results in disability leading to impairment of earning capability of an Individual?

Well, Accident Insurance Plan provides financial cover in case of any such eventuality. Thus, Individual has some sort of financial cover in case of Income loss.

As per report, atleast 1,46,377 Individuals lost their lives and many more injured in road accidents in 2017 alone in India. It is also reported that India has the highest road accidents related death in the World. Apart from road accidents, Individuals may suffer serious injuries due to accidents at home or work place too (slipping from Stair Case or in Bathroom, etc). Thus, Accident Insurance Plan provides cover in all such cases.

Accident Insurance Plan not only provides financial cover against death and permanent disability, but also in case of temporary or partial disability, loss of income as per the provisions of the Insurance cover availed.

A comprehensive Accidental Insurance Plan provides financial cover in case of demise or injury caused by any unfortunate turn of events such as accident (on road or any similar mishap at home, workplace, etc).

Benefits Under Personal Accident Insurance

Personal Accident Insurance provides financial cover to the nominee in unfortunate event of demise of the policyholder.

In case of the policy holder suffering from total disablement, partial disablement, or temporary disablement, the Accident Insurance Plan provides financial assistance in lieu of loss of income opportunity due to injury.

Treatment and Hospitalization Expenses is also covered under the Accident Insurance plan.

Educational Cost of dependents up to maximum of two children is also provided under the coverage.

Exclusions from Personal Accident Insurance

Some of the general exclusions have been mentioned below, however the list is not exhaustive and may include riders as per the Terms & Conditions laid out in the policy.

#Any pre-existing injury or physical condition

#Any intentional self-inflicted injury, suicide or attempted suicide, sexually transmitted conditions, mental or nervous conditions, insanity, disorder, anxiety, stress or depression

#Insured Person flying in an aircraft other than as a fare paying passenger in a Scheduled Airline

#Insured Person engaging in sporting activities, involving training for/or participation in competitions of professional sports, unless declared beforehand and agreed by the Company

#Insured Person serving in any branch of the military, navy or air-force or any branch of armed Forces or any paramilitary forces

#Any claim related to Hazardous Activities

#Persons whilst working with in underground mines, explosives, press, activities like racing on wheels or horseback, winter sports, canoeing involving white water rapids, any bodily contact sport

#Claim arising out of mental illness, stress, psychiatric or psycho logical disorders.

#Being under the influence of drugs, alcohol, or other intoxicants or hallucinogens unless properly prescribed by a Medical Practitioner and taken as prescribed.

#Any Injury directly or indirectly resulting or arising from or occurring during commission of any breach of any law by the Insured Person with any criminal intent

Chose the Right Personal Accident Financial Cover

Accidental Insurance is available in various forms as rider with Life Insurance or Health Insurance Plan, but these plans may come with some restrictions which will limit the benefits offered under standalone Accident cover plan. Furthermore, the premium rates may also go up on such plans. Benefits offered as riders may not be as comprehensive as a Standalone Insurance cover.

Individuals looking to buy Accident Insurance Cover should go through the Terms & Conditions of the policy to have a clear understanding of the benefits and the circumstances under which the same will be awarded. A comprehensive Accident Insurance will come at higher premium compared to one offering Basic coverage. However, the compared to Life and Health Insurance, Personal Accident Insurance cover is pretty economical.