In the world of insurance, there are mainly two types of insurance: accident & health insurance, which cover medical costs resulting from accidents or disability. Personal accident insurance provides financial coverage against death, disability, & physical injuries to its policyholders. This plan provides financial protection in case of an unfortunate event, which includes all medical, treatment & miscellaneous expenses. This policy allows us to focus on the recovery phase & take care of regular chaos.
In case of death or permanent disability of the policyholder, the sum assured is paid by the insurance company, & the policy terminates thereafter. On the other hand &, in the case of partial disability, some amount is paid on the basis of the severity of the disability. &, a weekly amount is paid in case of temporary total disability. It is considered to be an income protection plan, where the profession you are in & your income decide coverage & the premium amount.
Reasons to Buy Personal Accident Insurance
Provided are the reasons one should buy a Personal accident insurance:
- Financial Protection from Accidents & Injuries
This insurance plan secures the insured from financial losses resulting from burns, fractures, accidents, disabilities, & injuries.
- Lifetime Security for Family Members
This plan offers financial security in times of unfortunate events, i.e. disability, accidents, death, etc.
- Essential for People at Hazardous Workplaces
Individuals working in hazardous places, such as production, mining, etc., should keep their families protected with the help of personal accidental insurance.
- Lowers Disability Treatment Expenses
Whether it is the case of partial or total disability, it creates a financial burden & stress due to high treatment costs.
- Enhanced Coverage with Add-on Benefits
It offers additional benefits over & above accidental death & disability, such as OPD expense, accidental hospitalisation, daily allowances, etc.
Difference between Personal Accident & Life Insurance
Many individuals ask What is Term Life Insurance, & how is it different from personal accident insurance. Let us have a quick look at the key differences between Personal Accident & Life Insurance:
| Personal Accident Insurance | Life Insurance |
| It covers death or injuries that occurred due to an accident. | It includes life coverage throughout the policy tenure. |
| It includes the treatment & hospitalisation expenses that occurred due to an accident. | The nominee here will receive the sum insured on the death of the insured. |
| All age groups can take it to tackle the treatment costs due to an accident. | It is most suitable for the sole breadwinner in the family. |
It is critical to have life coverage in your policy so that it financially protects your family against any untimely event. To do so, it is critical to opt for the best term insurance available in India.
Steps to Buy Personal Accident Insurance
Provided are the steps to buy a personal accident insurance:
Step 1: Evaluation of requirements
Analyse your current profession, lifestyle, & potential risks that might arise in your daily routine. Consider factors such as whether your job demands physical presence or involves risky or adventurous activities. Evaluate the most relevant requirements, including medical expenses covered, desired coverage in the event of disability, & loss of income resulting from disability.
Step 2: Explore & compare different insurance providers
Explore & compare the different insurance companies available which offer a personal accident policy. The comparison should be based on specific factors, such as premium costs, claim settlement ratios, customer reviews & ratings.
Step 3: Understand & the coverage of the policy
Understand the policy’s coverage by going through its inclusions & exclusions.
Read: Quiet Features That Make a Loud Impact at Home
How to Raise a Claim for Personal Accident Insurance?
Provided are the two ways to raise a claim in case of Personal Accident Insurance:
- Cashless Claim Process
Step 1: Initially, an insured is required to inform the insurance company within 48 hours of hospitalisation.
Step 2: Provide the policy details, cashless card, & an ID proof at the hospital.
Step 3: Complete the pre-authorisation form with all the required details & submit it to the hospital authorities.
Step 4: You can expedite the process by filling out the form available on the official website of the insurance company. Also, inform the insurance company about the same.
Step 5: Once your application is reviewed by the insurer, you will be informed about the same through email & SMS.
Step 6: The insurance company will then process the claim, for which the status can be checked online.
- Reimbursement Claim Process
Step 1: This claim arises when you choose a hospital that’s not covered under the list of insurance company network hospitals, or a cashless claim is not opted for.
Step 2: Inform the insurance company 3 days prior in case of planned hospitalisation, & within 2 days in case of emergency admission.
Step 3: You are required to submit the necessary documents within 15 days of discharge.
Step 4: The claim will either be accepted or rejected once the documents are reviewed.
Step 5: In case the claim is accepted, the insurance company will transfer the claim amount to the registered bank account via NEFT.
Step 6: In case the claim gets rejected, a notification will be received on the registered mobile number & e-mail ID.
Documents required to raise the claim for personal accidental insurance
Provided is the list of documents required to be filed in case of an accidental death:
- Death Certificate
- Original Policy Documents
- FIR Report
- Beneficiary’s ID Proof
- Policyholder’s Age Proof
- Medical Certificate
- Post-Mortem Report
- Discharge Form
- Medicine Bills
- Hospital certificate
- Employer certificate
- Cremation Certificate
- Any other report, as requested by the insurer
Taxation benefits
- Get a maximum tax deduction of INR 25,000 for self, dependent children, & spouse, & INR 50,000 in case the age is over 60 years.
- Get an exemption of tax on the amount of claim received against accidental death or disability u/s 10(10D).
- Get a deduction of up to INR 75,000 in case senior citizens are covered.
- Get a deduction of INR 1,00,000 in case both the policyholder & premium payer are senior citizens.
Conclusion
In today’s unpredictable world, insurance has become important, whether it is term life, health, travel, or personal accident insurance. Accidents may occur with anyone at any time & anywhere, causing damage. To deal with this situation, one can buy a personal accident policy, which will help provide a sigh of relief, hence removing financial burden & stress.
