Why Should I Buy a Personal Accident Insurance Policy?

You should buy a personal accident insurance policy to protect you and your family from any unexpected financial ruin caused by unforeseen accidents, which might lead to disability or death.

It is an essential coverage since it offers benefits such as replacing your income and covering high medical costs. Unlike standard health insurance, a personal accident cover addresses dependent needs.

Why Do You Need a Personal Accident Insurance Policy?

If an accident causes temporary or permanent disability, it may prevent you from working and earning an income. In such situations, a personal accident insurance policy can provide a payout to help replace lost income and ease financial stress.

As per the Insurance Regulatory and Development Authority of India (IRDAI), the minimum coverage limit for personal accident insurance is ₹15 lakh, offering substantial financial protection at a relatively affordable premium.

Some insurance companies in India also offer up to 150% of the sum insured along with a cumulative bonus in case of permanent total disability.

Other than this, you need personal accident insurance because:

• In case of death, a lump sum amount is paid to your nominees to ensure financial security.

• This policy covers unplanned medical expenses such as transportation to hospitalisation and specialised treatments.

What are the Eligibility Criteria to Purchase Personal Accident Insurance Policy?

You can purchase a personal accident insurance policy with an entry age between 18 and 70 years. A detailed breakdown is given below:

• Dependent children can be covered from 5 months to 25 years of age.

• You can include your spouse in this plan.

• The sum insured amount will depend on your monthly income from gainful employment as declared by the company.

What Does Personal Accident Policy Cover?

• It covers accidental death, permanent and temporary total disability.

• You can get additional benefits such as an educational grant, travel expenses for one relative, transportation of imported medicines and many more.

• It provides 5% of the sum insured, subject to the maximum of ₹10,000 for the expenses incurred to purchase blood for medical or surgical treatment.

Final Words

A personal accident insurance policy acts as an important financial safeguard against life’s unexpected events. Whether it is accidental disability, loss of income, rising medical expenses, or providing security for your family in case of an unfortunate loss, this policy offers valuable protection when it is needed most.

For more comprehensive coverage, you can combine it with your health insurance plan to strengthen your overall financial security and peace of mind.