Personal Accident Cover: Why You Need It and How It Can Protect You from Financial Burdens

Personal Accident Cover: Why You Need It and How It Can Protect You from Financial Burdens

Like all of us, Nihar had so many dreams. But he dreamt not just about himself. He dreamt of seeing his loved ones happy, safe, and secure forever. Alas, all his dreams came crashing down when he met with a road accident a year ago. He lost his job.

Now, Nihar has used up all his health insurance coverage and bank balance. He can no longer provide the best of everything to his loved ones. The smile on their faces is no longer there. “If only I had a personal accident cover,” – is what Nihar says to himself these days. Accidents often result in unexpected medical bills, lost income, and other financial burdens – not to mention the constant sadness in the minds of our loved ones. This is where personal accident cover comes into play. In this blog post, we will explain what a personal accident cover is and why having one is important.

What is a Personal Accident Cover?

A personal accident cover provides financial compensation in the event of an accident resulting in injury or death. The injury can either result in permanent total disability, permanent partial disability, and temporary total disability. In case of death, the policy pays out 100% of the sum insured, while in the event of disability, the payout varies from a fixed percentage of the sum insured in the case of permanent disability to weekly compensation for temporary disability. These policies also provide additional benefits like coverage for medical expenses arising due to accidents, hospital cash on account of hospitalization due to the accident, cost of transportation of mortal remains, ambulance charges, and education benefits for children.

You can buy these policies as an add-on in life, health, or motor insurance policies or as a standalone policy.

Who should buy a Personal Accident Cover?

Personal accident policy should be brought by earning individuals whether they have dependents or not. Individuals with dependants should have a personal accident policy in addition to a health and term policy to meet expenses in case of accidental injuries resulting in permanent or temporary disability. Young earners without dependents should also consider personal accident cover for the same reason.

Individuals involved in high-risk employment, such as construction, fishing, logging, manufacturing, etc., should definitely consider personal accident cover due to the higher probabilities of injury and accidents.

Why Do You Need Personal Accident Cover?

Here are some reasons why a person needs personal accident cover:

  •  Personal accident cover provides financial protection to the policyholder or their beneficiaries in the event of an accident. The lump sum payment or weekly payments can be used to cover medical bills, loss of income, or other expenses that may arise due to the accident.
  •  No one is immune to accidents. High-risk employment environments can indeed increase the chances of injuries and accidents, but accidents can happen to anyone, regardless of age, occupation, or gender. Therefore, it’s important to have a personal accident cover to protect yourself and your loved ones.
  •  Personal accident covers also provide coverage for permanent disability. In case of permanent disability resulting from an accident, the policyholder will receive a lump sum payment to cover their ongoing expenses. 
  •  In case of the policyholder’s death due to an accident, the beneficiaries receive the entire sum assured as compensation. This can help cover the expenses associated with outstanding debts and other living expenses.
  •  Personal accident covers are reasonable, with premiums starting from 1K or less annually, depending upon the coverage you go for. This makes it a cost-effective way to protect yourself and your family from financial hardships in case of an accident.

Personal accident cover is an essential insurance policy that provides financial protection to you and your loved ones in the event of an accident resulting in injury or death. Accidents can happen anytime, anywhere, and to anyone, so it’s important to have a personal accident cover to safeguard your finances and provide peace of mind.

If you have a question, share it in the comments below or DM us or call us – +91 9051052222. We’ll be happy to answer it.

~Nischay Avichal

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