If the policyholder passes away from an accident, the nominee will get complete compensation. (Photo credit: Unsplash)
New Delhi: Nowadays, for the safety and security of ourselves and our loved ones, we tend to opt for several insurance policies. Insurance, in the case of a mishap, helps us to cover the cost and other crucial aspects. One such important insurance is the personal accident insurance policy.
What is a personal accident insurance policy?
Personal accident insurance, as is evident from the name, is a policy that covers medical costs, and ensures that there is compensation if the accident results in any kind of disability or even death. The insurer gets total financial safety in case of any unfortunate event like death, injuries, and temporary and permanent disabilities resulting from an accident.
If the policyholder passes away from an accident, the nominee will get complete compensation from the insurer. There are other compensations offered for accidental disability like loss of eyes, limbs, and speech.
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Types of this policy
There are two types of personal accident insurance policy:
Individual accident insurance
It protects an individual if any accidental damage takes place. It covers accidental death, loss of sight or limbs, or other disabilities which are permanent and have been caused due to an accident.
Group accident insurance
It is mainly availed of by employers to get coverage for their employees. However, this plan is very basic and typically offers benefits that are limited compared to an individual plan.
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Why you should have this insurance policy?
- If the policyholder dies in an accident, the nominee mentioned in the policy document will get compensation for that. It will give the late policyholder’s family financial safety. The compensation ranges from Rs 5 lakh to Rs 1 crore.
- Sometimes, an accident can leave a person permanently and totally disabled. In that case, the insurance policy gives an amount which depends on the disability’s nature. The policy also covers loss of eyesight, speech and hearing.
- The policyholder can also get compensation if he or she has partially lost hearing in one ear or suffered eyesight loss in one eye.
- The insurance covers other aspects like education and employment benefits, and expenses when it comes to funerals. Hospital charges which include the cost of ambulance are also covered.
