A-Z Of Personal Accident Cover

Accidents can occur in any place be it your home, office or on road. Depending on the severity of the accidents, they could cause disability or even fatal injury. Besides the hospital expenses and medicine bills, the inability to continue to work for some time might further strain your pocket. In such testing times, a personal accident insurance is a benefit policy and could prove the right kind of help, compensating your financial losses and providing support.

What is the need

The prime reason as to why you should take a personal accident cover for yourself is because of its holistic nature, which covers accidents and related disabilities. Also, an accident and its effects are unpredictable. The longer the recovery period, more shall be the monetary losses. A personal accident cover, in such a case, reduces financial constraints while compensating for injuries and death resulting from accidents. Moreover, it is a low cost policy and is easy to purchase.

What does it cover

In case of a personal accident, the injury or disability is covered. The scope of coverage may vary from individual to individual and on the quantum of disability as certified by medical practitioner.

Coverage of accidental death

If an insured individual passes away in an accident, then the complete sum insured is paid to the nominee or legal heir. 

Types of accidental injury 

1. Permanent total disability cover

The complete and irrevocable damage or loss of body parts gets included in total disability, which renders a person totally incapable for employment or any sort of work. The example includes if a policyholder loses sight in both eyes, loses two limbs, or one limb and one eye in an accident. In such cases, the complete sum insured gets paid to the person holding the policy. 

2. Permanent partial disability cover

A permanent partial disability refers to the loss of any fingers or toes or any other body part that causes permanent partial disablement. This kind of cover allows the payment of a small portion of the assured sum, weekly or monthly, to the policy holder for a specified number of weeks. 

3. Temporary total disability cover

A temporary total disability cover would stand for any disability that exists for a temporary period, like a fracture or a dislocation which shall lead to a temporary loss of income. In such cases, a portion of the assured money which is subject to a maximum limit gets paid to the policy holder for a specified number of weeks. 

Remember, for any policy holder to get covered in any of the above cases, the insurance company would require certification from a qualified doctor or medical personnel describing the type of injury and whether it is temporary or permanent. Only when the policy holder is verified on this basis, shall the payment be made. 

 The author is the Executive Vice President, IFFCO Tokio General Insurance