Accidents Come Without Warning!

As many as 1.2 million Indians were killed in road accidents, while 5.5 million were seriously injured during 2004-2014, according to an article published in DNA in November 2014. It is quite likely that you have life and health insurance in place, which provide financial security against death and major life threatening disease, respectively. But what about the damage caused by accidents? Life is unpredictable and you must be prepared for the unfathomable.

Need for Accidental Insurance

Accidental insurance covers you for the uncertainties caused by unforeseen calamities. It can help you overcome loss of income days and move on with daily expenses, uninterrupted. It is especially beneficial and necessary for individuals who are the sole breadwinners of the family. Individual who are repaying loans or other debts must also consider this policy. You can either take a personal accident policy or go for a family cover.

What Does It Cover?

The policy covers:

·         Death due to accident

·         Permanent total disability due to accident.

·         Permanent partial disability due to accident.

·         Temporary disability due to accidental injuries.

It also provides protection against minor injuries, such as falling off a bicycle. It does not, however, cover suicide, death due to natural disaster and death due to terrorist attacks.

Who is Eligible?

You can take this policy both for yourself as well as your family. However, children need to be between the ages of 5 and 21, while adults should be between the ages of 18 to 60. Getting your child and spouse covered under this plan can help you finance their expenses at the time of disability or death. In case of death or disability, an insurer may pay a certain percentage of the sum assured towards funding a child’s education as well. This is, however, only applicable if your child is covered under the plan. Insurance companies also pay a certain amount as funeral expenses in case of accidental death.

Premium and Payout

The premium for such policies are among the lowest. You can get a cover of Rs. 5 Lakhs for as less as Rs. 300 per annum, approximately. In case of accidental death and permanent partial disability, 100 percent of the sum assured is paid. On the other hand, in case of permanent total disability, a certain extra percentage of the sum assured is paid out. You can easily renew the policy once when the tenure is over. Insurers may offer a lower premium upon renewal.

You may argue in favour of accidental riders for a life insurance rather than a standalone policy. However, due to lower premiums and extensive coverage, buying a personal accident policy is a feasible option. It is a must have for individuals who drive a vehicle.