Approximately 1.5 Lakh fatalities were recorded in 2017 due to road accidents in India. Many individuals suffered from significant injuries as well, which, in severe cases, led to detrimental health effects such as permanent disability. Substantial amounts have to be spent on treatment for recovery, which might create a financial burden on both the victim and his/her families.

Personal accident insurance policies can be beneficial in such cases, as it provides adequate financial coverage for high quality treatment of insured individuals in adverse situations. Numerous insurance aggregators also extend several other advantages through widespread coverage and nominal premium payments.

Benefits of personal accident insurance plan

• High sum assured at a nominal premium

Renowned insurance aggregators offer high sum assured as claims in case of unforeseen circumstances. Up to 40% of the total claim amount or total medical bills are disbursed as coverage under such insurance plans.

• Compensation in case of permanent incapacity

Individuals suffering from severe deformities as a result of an accident can claim compensation through personal accident policy. Up to 125% of the sum insured is disbursed by several institutions for medical treatment and other associated costs.

• Comprehensive coverage

Expenses for various medical treatments pertaining to an accident are covered under such insurance policies. Such widespread coverage benefits ensure financial stability of insured individuals. Also, the mental strain on victims and their families are minimised through a personal accident insurance cover.

• Compensation for loss of pay

Individuals suffering from grave injuries as a result of such accidents and confined for treatment or recovery can claim compensation against income loss. Nevertheless, funds are disbursed only if an insured is hospitalised during the period of recovery.

• Funds for child education

Deceased or permanently disabled individuals can benefit from compensation to meet all funding requirements of their child. A substantial sum is disbursed for such purposes, provided the child is minor.

• Discounts and bonus

Several discounts on premium are offered to insured individuals for extended claim free periods. In case no claims are made during a financial year, up to 10%-50% discounts on the premium payable are extended to individuals.

• Hassle-free disbursal

All hospitalisation and other associated expenses are covered through direct disbursal of funds to the concerned medical centre. Such instant and hassle-free claim procedure of a personal accident policy helps reduce the mental strain of the insured and that of his/her family in such adverse situations.

• Medical history is not required

Individuals applying for such insurance plans do not need to provide past medical certificates. Any injury caused by accidents is covered, provided the extent of damage is not from past ailments.

Such provisions of personal accident insurance policies make it beneficial for all individuals to avail the same to maintain financial stability. You can also opt for an Individual Health Insurance policy offered by Bajaj Finserv for added coverage against ailments not covered under an accident insurance plan.

Advantages of individual health insurance

• Like a personal accident insurance plan, no prior medical history has to be submitted to avail a regular insurance plan for individuals below the age of 45 years.

• The insurance premium is exempted from income tax calculations under Section 80D of the Income Tax Act. Up to Rs. 25,000 can be claimed by individuals, while senior citizens are entitled to an exemption of Rs. 30,000 per year as tax exemptions.

Both individual and personal accident insurance plans aim to provide financial stability and reduced mental strain during any health complications. Accident insurance policies also extend benefits to families of insured individuals in case of fatal situations. Such provisions are particularly helpful if an individual is the sole earner in a household.