What is Personal Accident Insurance Coverage?

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What is personal accident insurance coverage

Accidents can happen at any time. Research shows that more than 90 people die in accidents daily, while an additional 3 million are injured or disabled annually.

God forbid that this should ever happen to you or your loved ones. But what precautionary measures have you taken to protect yourself at this vulnerable moment? After all, there is no telling when such an incident strikes. And you can’t guarantee that an accident simply won’t happen.

The solution- acquiring personal accident insurance coverage

Personal accident insurance can offer financial support, including reimbursement of medical expenses as well as compensation for a disability or death due to the accident. It can help you and your family cope with the distressing situation, primarily if a loss of income is also incurred.

What accidents are covered by personal accident insurance policies?

A range of accidents and injuries can be classified as personal accidents. But because these accidents aren’t the result of someone’s actions, they cannot be claimed by anyone’s insurance. So many people opt for an insurance plan that can cover them.

The accidents that will be covered by your insurance provider depends on the policy you sign. Usually, accident plans can offer coverage for the following situations:

  1. Temporary disability

An accident in which a person obtains temporary injuries that result in total disablement can be covered. For example, a fracture that requires bed rest prevents an individual from going to work. A payout can be paid to compensate for the medical bills as well as income until the person returns to work.

  1. Permanent partial disability

An accident can result in the loss of a limb or the partial loss of its functionality. The individual involved in the accident will need treatment in order to recover. A certain amount of these expenses can be covered in a personal accident insurance coverage plan.

  1. Permanent total disability

An accident may result in an injury so severe that the person is unable to work for the remainder of their life. Even after receiving medical treatment and allowing time to reach the maximum recovery level, the individual is still physically impaired. This can include the loss of functionality of any limb(s) or vision. In this case, a specified amount of the benefit is paid to the insured.

  1. Accidental death

Death due to a car accident, slip, or devastating incident can be an unfortunate occurrence. In such an event, the family is compensated for up to 100% of the assured sum. You should also inquire about additional coverage, such as ambulance charges or funeral expenses that your insurance provider offers.

  1. Act of terrorism

A personal accident insurance plan may also cover injuries due to terrorism.

Who should obtain personal accident coverage?

Working in a high-risk environment has potential dangers. If you are employed in a warehouse or construction site, seriously consider taking out a personal accident insurance policy. And because they usually cover accidents and injuries acquired anywhere globally, some people obtain an insurance policy before going on vacation.

What are the benefits?

It may seem that the peace of mind you get from obtaining personal accident insurance to protect yourself in case of an accident is enough to justify investing in one. But some people question whether it’s still the right decision to take.

Here is a closer look at some other advantages that this policy has to offer:

  • Additional coverage

A personal accident insurance plan can offer extra coverage that an ordinary health insurance policy doesn’t. So if you require rehabilitation (something which isn’t covered), personal accident insurance can supplement your current insurance plan.

  • Budget-friendly

If other policies are too expensive, personal accident insurance is a great alternative.

  • No medical underwriting

Personal accident insurance doesn’t require any medical underwriting, so it’s a good option for those who have been previously declined a life insurance policy.

  • You’re self-employed

A self-employed individual does not have an insurance plan offered through an employer. So the next alternative is to protect their finances by acquiring an affordable insurance plan for themselves.

  • Live an active lifestyle

This is a sensible choice for those employed in high in high-risk areas. But the same is true for anyone who is physically active and could require the benefits of an extra coverage plan.

How to file a claim for personal accident insurance

The process of initiating a claim is straightforward. Mention the following information in your claim:

  • your contact number
  • policy number
  • date and time of the accident
  • location of the incident
  • a brief description of the accident and what loss was incurred
  • medical report and hospital bills
  • any FIR, police report, post mortem report, etc.

However, the most critical aspect is to file within a specified amount of time mentioned in your policy. Once the claim has been registered, you will be assigned a claim reference number. And this is what you will need to provide to acquire benefits from your insurance provider.

Final thoughts

Accidents typically are unexpected events. However, it’s better to be financially prepared. Personal accident insurance coverage can be a sensible choice. But before signing any documents, you should read and understand all the terms of the policy. Remember to inquire about coverage, exclusions, and add-ons so that you know exactly how much you will have to pay at the end of the day.