Aashish Sethi
Whether it’s a road accident, a house fire, or a slip on a banana peel, we often come across day-to-day incidents like these. These accidents are sudden and unforeseen, occurring in various places—on the road, at home, or in the workplace. Most of the time, they’re beyond our control. Despite our best efforts, accidents can still happen, sometimes resulting in serious consequences like hospitalization, disability, or even death. This unpredictability highlights the importance of being cautious and prepared. One of the key ways to manage the financial burden that comes with such incidents is through personal accident insurance. It offers crucial financial support during these tough times, ensuring you’re ready to handle any unexpected expenses while also providing security for your loved ones. Let’s understand from expert Mr. Ashish Sethi, Head- Health SBU and Travel, Bajaj Allianz General Insurance what is personal accident insurance and why it is beneficial for you
Personal accident insurance is an insurance cover that covers any bodily injury sustained due to an external, visible, violent and unforeseen event. This provides financial protection against accidents, no matter where or when they occur—whether it’s a road accident, a fall at home, or a sports injury. This type of insurance is a benefit- policy, meaning a predetermined amount is paid to you or your nominee, depending on the Sum Insured you select. It offers flexibility, allowing you to tailor the coverage to suit your specific needs and circumstances.
Let’s explore the comprehensive coverage of this insurance product:
Accidental Death: In case of the death of the policyholder due to an accident, insurance will pay the full sum insured as opted by the policyholder at the time of taking the policy. This amount will be paid to the beneficiary as named under the policy. This lumpsum amount ensures income replacement for the dependents.
“Accidents are sudden, unforeseen, and often beyond our control. Personal accident insurance ensures that the financial burden does not add to the trauma.”
Permanent Total Disability: In case of an accident sustained by the policyholders resulting in a lifelong total disability as defined in policy T&C, such as loss of 2 limbs, loss of sight, or similar, the insurance policy will pay the policyholder the full sum insured as mentioned under the policy. In this case, the claim amount is sometimes even 1.5 to 2 times the sum insured because permanent total disability often results in additional living expenses. The extent of this enhanced coverage varies depending on the insurer.
Permanent partial disability: If an accident sustained by the policyholder results in a lifelong partial disability, such as the loss of one limb, loss of one eye, or others as mentioned under the policy document whereby the insured is unable to continue the current gainful employment, the insurance company disburses a pre-agreed percentage of the sum insured. A government medical officer certifies the degree of disability and the insurance company decide this degree of disablement and payment to be made.
Temporary Total Disability: If an accident sustained by the policyholder results in a temporary total disability, i.e., the policyholder is unable to do their routine occupational work, then the policyholder will get a weekly or monthly fixed benefit under the policy. This fixed benefit will be paid until the policyholder recovers sufficiently to start doing their occupational work or as defined under the insurance contract.
In addition to the benefit mentioned above, this insurance policy also offers several optional add-on covers that you can choose for enhanced protection.
Hospitalization Medical expenses: The policy will cover the hospitalization expenses incurred to recover from the bodily injury sustained in the accident.
Children’s Education Benefit: In the event of the policyholder’s death or disability due to an accident, the policy will provide a pre-determined benefit amount to support your children’s education.
Loss of Income: The policy will pay a fixed amount for the duration the policyholder has been incapacitated for recovery from injuries. As the policyholder will not be in a suitable condition to work, this cover will provide them for the loss of income.
“In the event of an accident, this policy pays a pre-determined amount to you or your nominee—offering income replacement and financial security.”
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