An accident can happen at any time. While it is impossible to predict an accident, you can be financially well prepared to face the situation and protect yourself from adversity. Read on to know what personal accidental policy is? Its benefits and other important things.
A personal accident insurance plan provides comprehensive financial protection against various uncertainties like loss of life due to accident, partial or total disability resulting from an accident. In case of the loss of life, the insurance company pays 100% compensation to the nominee of the policyholder.
What Are The Types Of Personal Accident Insurance Cover Available In India?
In India, the insurance companies offer two types of personal accidental insurance Individual Accident Insurance and Group Accident Insurance.
Individual Accident Insurance
As the name suggests, it provides coverage to an individual against all damages and bodily injuries caused to an accident. It covers loss of limbs, permanent disability and loss of life.
Group Accident Insurance
Group accident insurance is taken by employers to get coverage for their employees. Based on the number of employees in the organisation, some insurance companies also provide a discount on the premium.
A group accident insurance policy is a basic plan and has only limited benefits. It is, therefore, advisable to have a personal accident cover even if you are covered under group insurance.
What Does Accidental Insurance Cover?
Accidental death cover
If you get involved in an accident that leads to loss of life, it can leave your family emotionally devastated, and also lead to financial hardship. In case of fatal injury, the insurance company will pay the sum assured to the nominee.
Permanent partial disability
If you have a permanent partial disability, then the insurance company will pay a certain percentage (depending on the kind of injury and the policy terms) of the sum assured.
Temporary total disability
If you meet with an accident, which leads you to be bedridden, the insurance will provide you with a weekly allowance to compensate for the loss of income. You can use the amount to pay off the debts (if any).
How Much Does Accidental Insurance Cost and What Is the Ideal Coverage?
The insurance companies determine the premium for accidental insurance based on different factors like the type of plan you opt for, your age, occupation, and medical history. If you are a youngster and have no history of ailments, you can get accidental insurance at a lower premium than those who are aged above 50.
The experts recommend that while buying accidental insurance, you must follow the thumb rule, which is the sum insured amount must be 100 times more than your current income. For example, if your monthly earning is 10,000 INR, then you must opt for a personal accident cover for 10,00,000 INR.
Tax Benefits Associated with Personal Accidental Policy
The premium you amount pay towards the personal accident policy that offers protection against accidental death and physical disability is deductible under Section 80D of the Indian Income Tax Act, 1961. However, you must know that the primary reason for buying a personal accident cover is safety and protection; you must not buy the insurance for tax-saving purpose.
Steps to File An Accidental Insurance Claim
To claim the accidental insurance benefit, you must inform the insurance company within the specified time mentioned in the insurance policy post the accident. When you intimate the company, they will provide you with a reference number. Apart from the reference number, you must provide the following details to initiate the claim.
· Your policy number
· Your contact details
· Details of the accident.
Once you have provided the above information, the insurance company will, verify the claims before advancing the benefit.