Accidents, as the name suggests, are inherently unpredictable. They can happen anytime and anywhere – whether you are at home, at work, or even on vacation. A small slip in the house, accidental tripping on a staircase, injuring yourself while playing football, or a road accident can have long term implications for you and your family. As per the facts released by WHO, approximately 1.35 million people die each year as a result of road accidents. Far more are injured. These injuries can be temporary or permanent.
Accidents leading to disability, death, or long-term illness can make you and your family emotionally and financially weak. So, while one cannot predict an accident, one can definitely be prepared for the same. Personal accident cover can soften the financial impact of such an unfortunate event. Let’s see how.
What is Personal accident insurance/cover?
Personal accident insurance is a policy that offers financial compensation or reimburses the medical cost in case of total/partial disability or death caused by accidents. In case you meet with an accident and get disabled or lose your life, the policy will ensure financial stability for you and your family, respectively.
Major areas that are covered under Personal accident insurance are:
- Death after the accident- It’s an unfortunate but bitter truth. You might lose your life after a severe accident. In such a case, the nominee in your policy will get accidental death compensation. So, you should always add the name of the nominee while applying for the personal accident cover.
- Total disability- An injury or condition may result in total disability, preventing you from performing any work at all. It is a severely debilitating situation whereby you are not only losing your ability to work and thereby earn income but also requires major medical expenses and increases your cost of living expenses as many adjustments need to be made in the house to allow you to live comfortably. In such circumstances, a personal accident cover can not only cover medical expenses but also provide monthly payout to compensate for the loss of income and additional expenses.
- Partial Disability- Partial disability, while not that severe, can still result in one’s reduced ability to perform all physical functions. Reduced physical functions can impact one’s ability to earn and might also require some minor accommodations to be made to allow one to work and live at fuller capacities. As in total disability, personal accident policies can payout for both medical and non-medical expenses, related to the partial disability.
Depending on the kind of personal accident policy, in some cases, the insurance companies pay for the transportation expenses that were incurred by your family to reach the hospital. Also, the policy covers hospital costs, including ambulance costs, funeral expenses, and pays for your vehicle alteration.
What should you consider before taking the personal accident cover?
• Assess the coverage of the policy to ensure that you are extensively protected after the accident – both for medical expenses and loss of income and/or increased expenses.
• Track the record of claim settlement of the insurance company to know about its quality and reliability.
• Apply for the policy that offers coverage abroad so that you are secured even outside your home country.
• Learn about the claim procedure so that it’s quick and hassle-free at times of emergency.
Amid physical trauma and increasing medical expenses after an accident, a personal accident insurance policy provides peace of mind. We at New Age Insurance Brokers can work with you and your families to provide the right kind of cover.