The uncertain nature of life makes it impossible for us to predict the future. An accident can happen in our life at any time and without any notice, and it can sometimes cause serious damage. Any such unfortunate incident may have a financial impact that, apart from making your treatment costly, also makes you suffer from any type of severe disease and disability that can affect your income capacity. Hence, it becomes a wise decision to buy a personal accident insurance policy to protect yourself and your family from such circumstances. It gives financial stability to you and your family if the policyholder becomes disabled or dies due to an accident.
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Importance of Personal Accident Insurance:
The necessity for a personal accident policy arises from a core need that a life insurer can provide financial security in the event of his death due to any contingency. Insurance for personal accidents helps you and your family get financial support in the case of an accident that results in death, physical damage, temporary or entire disability, permanent total disability, or permanent partial impairment. The importance of this policy is truly understood by those who are regular commuters and have to travel more due to their jobs or business purposes. Moreover, employees of industry and factories should also insure themselves by any of these suitable policies available on NAVI.
Reasons to have Personal Accident Insurance:
Nobody wants to have any mishaps with them or their family, but accidents and mishappenings come without any previous hint. So it is better to be cautious rather than sorry and buy suitable personal accident insurance. Here are a few reasons why you should buy this policy:-
1) Accidental Death:
One of the most important reasons to have personal accident cover is that it covers uncertain death. This covers the compensation of the sum assured in case of disability or accidental death of the policyholder with 100% compensation benefit. It will act as a helping hand for the nominee to keep their livelihood and financial life stable.
2) Cost-effective :
Personal accident insurance covers are inexpensive and have affordable premiums. It gives you additional benefits and covers disabilities depending on the plan chosen by the insurer. As compared to a life insurance policy, it is more beneficial because life insurance policies give compensation after the death of the policyholder, but accidental insurance gives compensation at the time of a severe accident and partial or total disability.
3) Child Education:
Some insurance companies pay child education fees under child education coverage in case of the insured’s death or permanent disability. The employer is obligated to give an education grant of Rs. 10000 per child up to a maximum of two children.
4) Family Protection:
The personal accident insurance policy covers the benefits of family members by offering comprehensive financial security against unexpected risks. Being injured in an accident reduces employability and the flow of income, and this will result in financial instability. In the event of an income loss, this coverage helps make up for it. It also protects the family from the financial consequences of hospitalization.
5) Hassle-free Documentation:
With NAVI, it is a simple insurance plan that requires minimal information and less or no documentation. There are no medical tests required to avail of this policy. This insurance is also accessible online, where you can simply complete the application form and pay using NEFT. It will issue the policy as soon as the payment is successfully made.
6) Claim Settlement:
The claim settlement procedure of accident health insurance is simple and stress-free. The insured has to notify the insurance company about the claim and event specifics, such as the time and date of the accident, policy number, contact information, and the insured person’s data who is wounded. Once all of the information is submitted, the claim settlement procedure will begin immediately.
What Does It Cover?
Before purchasing insurance, we should take care of what it covers. Personal accident insurance schemes cover the following benefits:-
- It gives the whole sum assured to the nominee in case of the policyholder’s death.
- In case of permanent partial or permanent total disability, a percentage of the sum assured is given by the insurance company to the policyholder.
- Weekly compensation for injuries that results in confinement for up to 104 weeks.
- The insurance company covers the education fees of up to two children up to the age of 23.
- A fixed amount is paid for the transportation of mortal remains to the nominee in case of accidental death.
Things Not Covered in Accidental Insurance
Personal accident insurance does not cover the compensation:-
- If the insured person gets intentional self-injury or does suicide, he or she is no more eligible to get the sum assured.
- In the case of pre-existing disability or any injury during an accident before taking the policy.
- If an insured becomes disabled or dies during pregnancy or childbirth, she will not get the compensation.
- If you are suffering from AIDS or HIV, then you are not liable for coverage.
- If a person dies by taking drugs or a high quantity of liquor, the nominee will not get the insured amount.
Conclusion
Some insurers additionally include global coverage and other value-added services with the insurance. A personal accident insurance policy is also crucial since it protects you financially in the event of an accident. Purchasing it at a young age is advantageous because one is in good health and has money, and is less prone to accidents. Industries such as transportation, construction, and food delivery services should always consider purchasing this coverage to protect their employee’s financial stability even in the event of a disaster. Just as it is critical to provide financial security for your family in the event of your death, you must also consider how they would cope in the event of an accident that results in incapacity. Also, you must be prepared for such unforeseen events by carrying accident insurance. Before signing the insurance, make sure you understand its contents, exclusions, and other terms and conditions.
