What Is Personal Accident Insurance Scheme – Everything You Wanted to Know
September 19, 2019
Having an insurance cover for accidents for all to protect yourself from the losses you may incur when you meet with an accident. This article lists down the important aspects of the personal accident insurance scheme.
If you are the primary earning member in your family, you ought to invest in a personal accident insurance policy. Knowing the fact that life can be unpredictable, you buy accident insurance to get coverage against disabilities and fatal consequences and protect your family financially.
Why is it important to invest in a personal accident policy?
The accident insurance often falls in the grey area that neither the life insurance policy or the health insurance policy covers. Accidents can cause many casualties, including total or partial disability, which in turn can affect your ability to work and earn an income. In accidental cases, the life insurance policy does not provide the required coverage, and the medical policy would cover only the hospitalisation charges. To ensure that you keep your family protected financially against unforeseen events like accidents, you need personal accident insurance.
What does a personal accident insurance scheme cover?
A personal accident insurance policy provides coverage against minor as well as major accidents. Apart from covering fatality, it also includes coverage against partial and total disability. A good personal accident policy covers the cost of ambulance, hospitalisation charges, loss of eyesight/limbs, broken bones, burns, cuts and other medical services.
Does accident insurance offer any tax benefit?
Personal accident cover does not offer any tax deductions. These policies exist to ensure that the policyholders continue to perform their usual activities without having to worry about the financial losses due to injury or death from an accident.
What are the different types of personal accident insurance policies available in India?
Today, almost all the major insurance companies in India provide personal accident cover. Most insurance companies offer the basic accident cover, which pays out compensation to the beneficiary in the event of death or permanent disability to the policyholder. Some policies even provide coverage against temporary and partial disabilities. There are also policies which allow the policyholder to cover the entire family under a group policy. The group policy is highly beneficial for the business owners to cover the workforce under a single insurance policy.
How much personal accident cover is enough?
Many experts suggest that the ideal cover for personal accident must be 100 times your monthly income. For example, if you draw a salary of INR 10,000 per month, it is advisable to buy an accident cover for about INR 10,00,000. This will ensure that you get sufficient financial compensation for important expenses like loan repayment, child education, etc.
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