A personal accident insurance policy protects the insured financially against unforeseen events such as accidental death, physical injury, job loss, and temporary or permanent disability resulting from partial and/or total incapacity.
An accident is usually unexpected and tragic. They may cause small injuries that cause a brief disruption in your usual lifestyle, while more severe ones may cause a breakdown in work and provoke a financial crisis.
Most of us have a life insurance policy in place, but it does not pay out if an accident causes temporary or permanent impairment that does not end in death.
A personal accident policy would be quite useful in this situation. A personal accident insurance will protect you against both disability and accidental death.
Protection Against Disability
Bhaskar Nerurkar, General Insurance’s health administration division, describes the many forms of disability covered by a personal accident insurance.
Personal accident insurance covers permanent partial disability that results in permanent loss of a specific bodily part, such as an eye or leg. In this situation, a set proportion of the total insured is reimbursed based on the loss of normal bodily function. This kind of payment is granted when the partial impairment is beyond the scope of medical treatment. The rewards are consistent with the policy standards.
A permanent complete disability occurs when a person is unable to work owing to suffered injuries. A proportion of the money insured is paid out in this case. Such a handicap is typically beyond the realm of medical therapy or medication.
Even if the handicap was not obvious at the time of the accident, but develops as a result of the accident within a year of the occurrence, payments will be paid out in a lump amount.
A temporary total disability occurs when a person is entirely disabled and unable to do everyday tasks for a few days/weeks, for which weekly payments as specified in the policy terms and conditions are paid out. An person may be temporarily rendered entirely incapacitated as a result of an accident under this provision. Such a handicap may be repaired by medicine or therapy, and the insured can eventually return to his or her previous working capability.
In such instances, a personal accident insurance may compensate for lost income and give the insured with a fixed payment for a certain number of months, helping a family to get through a difficult time when the breadwinner is unable to work.
“Some of the usual exclusions include injuries experienced as a result of a suicide attempt, injuries sustained while under the influence of alcohol or narcotics, or any form of pre-existing disability,” Nerurkar says.
Protection Against Death
Accidental death may be emotionally and financially devastating to a family. A personal accident insurance also covers death that occurs within 12 months of purchasing the policy and is caused by an external, violent, visible, and obvious method that is confirmed and approved by a medical practitioner. In the event of accidental death, the candidate receives 100% of the amount insured. It is worth noting that a life insurance policy will also pay out the amount promised in the event of accidental death, but a personal accident policy would not pay out in the event of natural death.
Keeping a Child’s Education On Track
A personal accident coverage also assures that the covered child’s education will not be jeopardised in the event of their death. The coverage might be 10% of the amount guaranteed or the institution’s real tuition rates, whichever is less.
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A personal accident coverage will also cover any house changes needed as a consequence of the accident’s change in lifestyle. These would include costs for erecting a wheelchair ramp in the event of disability, as well as modifications to your vehicle to make it disabled-friendly.