Personal Accident

Accidents don't just happen on the roads. You may meet with one if you slip in your bathroom, or trip down the staircase in your office, or fail to see the next step in the darkness of a cinema hall.

One careless step could render a double blow to your finances -- your healthcare spending increases as you undergo treatment and your income stream gets disrupted until you recuperate. It is here that accident insurance plays a crucial role.

In India, you have two major options to cover the risk from accidents. First, are standalone personal accident insurance policies (PAIP) available with general insurance companies. Second, you can get it as a rider along with a life cover.

Accident policies only cover bodily injuries due to accidents, which are external, violent and visible, as the definition goes. It covers you for four contingencies that may arise from an accident -- death, permanent total disability, permanent partial disability, and temporary total disability.

Like benefits from all insurance policies, buyers need to understand how these contingencies are defined in the policy. When you go for a PAIP, opt for a comprehensive cover of the four contingencies even if you have the option of covering one, two or three of them.

Important

  » Choose your preferred insurer as premiums are the same across insurers

  » Provide income and profession details to the insurer

  » Insurer determines your risk category

  » Pay the premium based on risk category

  » Opt for comprehensive cover to include disability

  » Receive certificate and check its terms and conditions