There were times when insurance options available in India were minimal. However, today, different types of insurance choices are available in the market. Today, there are policies for almost everyone as per their budget and the ability to pay premiums. In 2019, the COVID-19 pandemic had hit the entire nation, and insurance plans like the Corona Kavach Plan acted as a shield during the battle. It has safeguarded people from the financial impact of COVID-related medical expenses. Likewise, insurance companies have come up with several other protection plans to cover the uncertainties in life.
One such policy is Personal Accident Insurance, which will not only ensure you against accidents but disabilities as well. With the increasing number of road fatalities in India, a personal accident cover is a smart move by insurance providers to secure your future from road mishaps and deaths. Yet, many people never choose to buy such a policy due to a lack of awareness and understanding. If your job entails traveling by bike or car, you need to know everything about personal accident insurance:
What Is Covered Under Personal Accident Insurance?
A personal accident insurance cover is slightly different from regular covers. This insurance cover offers financial protection against unforeseen events like accidents that causes bodily injuries, permanent disability, etc. Here’s what is covered under personal accident insurance –
-
Permanent Disability Cover
During the policy term, if an accident leads to permanent disability, then a consented amount will be credited to the policyholder. This agreed amount is usually specified on the policy document.
-
Accidental Death Cover
In the event of the policyholder’s death, the policyholder’s nominee is paid in the total amount of the sum assured.
-
Permanent Partial Disability Cover
If the policyholder faces a permanent partial disability, they are given a pre-agreed sum assured.
-
Temporary Total Disability
At times, an accident results in temporary total disability. A personal accident cover provides the policyholder a specific sum assured if they suffer temporary total disability due to an accident.
In many cases, insurance companies provide child support benefits for a child’s education in the event of the primary applicant’s death or PTD. Thus, it proves to be financial aid to the policyholder’s children.
Advantages Of A Personal Accident Policy
- Provision of financial security
- No external test is required to apply for the policy. Neither any documentation needs to be provided.
- Much exclusive coverage with special rates.
- Plans can be for self as well as for families.
- Easy customization of policy
- Worldwide accidental coverage
- Policy renewable for life
- Protection of the policy is anytime and anywhere
- Low premium cost
- Coverage of funeral expenses
- Direct settlement
Who Requires Personal Accident Insurance?
-
Regular Traveller
If you are a regular traveler within the country or overseas, you must have personal accident insurance. As the frequency of travel increases, getting involved in an accident also increases. Such things should not be avoided. Unforeseen events come unannounced, and thus one needs to be prepared.
-
Vehicle Driver
If you work as a driver, personal accident insurance is a must-have. No matter what vehicle you drive, you should pay for a policy like this no matter what car you drive. As per the WHO report published in 2018, an estimated 299,901 deaths happened in 2016 due to road accidents in India.
Tax Benefit Under Section 80D For Personal Accident Insurance
If you purchase a policy and pay premiums, it can be deducted as an expense under section 80D of the Income Tax Act 1961. An annual deduction of Rs. 15000/- is allowed for an individual for himself, his spouse, and children. For senior citizens, the annual deduction is Rs. 20,000/- One can claim the deduction by showing proof of the policy.
Which Company Is The Best For Providing Personal Accident Insurance?
Many insurance companies in India provide personal accident insurance. Niva Bupa has proven to be the best amongst all in recent times as it has launched a policy with 25 benefits and coverage of up to Rs. 10 Crore. They continue to review their policies and add more benefits to those looking for the best coverage option.
An exciting feature they provide is the loan protector benefit. If the policyholder has taken a loan, then the company will pay the outstanding principal in case of the policyholder’s death. This brings significant relief to the policyholder’s family in the future.
