Do You Need Personal Accident Insurance Coverage in 2018?

Do you know what is personal accident insurance(PAI)? Why we are talking about personal accident insurance? You might be thinking as you have done term insurance plan, then why should you buy personal accident insurance? In this article I will try to explain why you need PAI, although you have taken couple of other insurance plans like health insurance, life insurance , cancer insurance etc.

Do You Need Personal Accident Insurance Coverage?

As the name suggest, this insurance scheme is designed to provide a lump-sum benefit in case someone faced some accident and become physically disable or handicapped. It is not necessary that only death benefit will be covered under such policy, like pure term insurance scheme.

Then who are people who should buy this policy? Is this policy recommend for every one like we buy a term insurance plan? I will say, NO. This policy is designed for those people who are working in such environment where there is a chance of accident or disability is more due to the type of work. E.g. mining workers, people working in construction sites, coal mines etc.

That doesn’t mean, you can’t buy this policy. but the concept behind this is in case such accident happened and the person got physically injured then there should be some policy who will provide them lump-sum benefits. Unlike for typical term plans, where only in case of sudden death the family will get benefit. No benefit for disability or survival.

There are various types of Personal Accident Policy and many other factors to know. Here I will share 4 cases in which you can be benefited with this kind of policy

  • In case of a death due to accident, you will get 100% lump-sum amount as per policy.
  • In case there is a permanent total disability due to accident, you may get maximum 125% of sum assured value. This will depend up on company to company.
  • In case you have gone through some small accident where you may lose some organ, but will be able to get back to work. This is called permanent partial disablement and you will get some small percentage of sum assured on monthly or weekly basis.
  • The last one is temporary total disablement , under which you may get disable for few weeks due to some accident (hand fracture etc) and then get back to normal life after recovering from the same. In this case you may get some percentage of sum assured value.

Do You Need Personal Accident Insurance Coverage?

I hope I am able to explain why you need Personal Accident Insurance Coverage and who should buy such policies. Don’t mix this with health insurance or term insurance plans. If you think you need such back then you should go for such plans.

You can check out few popular Personal Accident Insurance policies available in India right now

  • Appolo Munich Accidental Plan (Standard)
  • Bharti Axa personal accident cover
  • Oriental Insurance personal accident Plan
  • Bajaj Allianz Premium Personal Guard
  • Future Generali Accident Suraksha
  • National Insurance Personal Accident
  • Royal Sundaram Accident Shield Online Platinum
  • Starhealth Accident care
  • Tata Aig Personal Guard

Did you buy any personal accident insurance policy? Share your experience or query if any.

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  1. Personal accident insurance is as compulsory as term insurance for each individual to secure the financial status of the family.. and in case of an accident, it pays the individual at the time of claim and helps him/her during the difficult phage he/she may go through.

    1. Hi Rajesh, Thanks for sharing your comments.
      You are right, but with many insurance to do in the list Indian people are burden these days due to lack of knowledge & awareness only. Off course term plan, accident plan, health insurance, cancer insurance etc are very crucial to make life perfectly planned. But if you can afford all of them together. 🙂

      1. I agree with Rajesh. People can afford if they avoid traditional policies and traditional methods of saving and reduce unnecessary expenditure. More over, whats the point if you had to pay Rs.5 lakhs for a treatment and you are concerned to save those Rs.5 lakhs all the years that you lived in saving rather than insuring with a much lesser amount. Health can be recovered but what about the lose of earning capacity of an individual. People must insure themselves with whatever they can afford and as per their earning capacity only.

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