What is Personal Accident Insurance?

Personal accident insurance gives financial protection for not only unfortunate events arising from accidents, but also for income loss because of the accident. Any of the unfortunate events caused due to road, rail and air accidents, collision, fire, explosion, and others are covered under this insurance. The insurance also financially compensates if due to the accident you suffer from disability which prevents you from working. Thus, the insurance also gives monthly income to help you carry on with life.

Types of Personal Accident Insurance

Broadly speaking, there are two types of personal accident insurance – Individual Personal Accident Insurance and Group Personal Accident Insurance.

• Individual Personal Accident Insurance:The first one is meant for individuals and it offers more coverage compared to the group insurance type. It covers not only death due to accident, but also short- and long-term disability due to accidents.
• Group Personal Accident Insurance: This kind of insurance is provided by employers for their employees. Such plans offer basic coverage and does not include the benefits included under a standalone policy.

Coverages

Accidental death : If the policyholder dies in an accident then his nominee gets accidental death compensation. The family is financially secure in this situation.

Permanent total disability in an accident : At times, despite medical help the victim becomes disabled for life. Then the insurance policy pays a certain amount depending upon the nature of the disability. The policy also covers loss of speech, loss of vision in both eyes, and hearing loss in both ears.

Permanent partial disability : This is applicable if a person has partially lost their hearing in one ear or suffered eyesight loss in one eye. Or, it could be that the policyholder has lost an index finger, a thumb, or even a hand. In all these cases, the policyholder can approach the insurer for a claim.