In India, a majority of individuals relate to the term accident only when they hear news about any road mishaps involving vehicles and individuals behind the wheels. We often tend to ignore the possibility of an untoward incident taking place with us at any given point of time.
An accident which causes human death or permanent disability does not necessarily take place with vehicles driving on an expressway, but can occur unprecedented at any corners of our life.
So, how well prepared are we to face such uncertainties and ensure that we have adequate financial aid to help ourselves or our dependent family members, in the case of death or a permanent disability creating a roadblock for the life journey ahead?
In order to ensure a financial support during such pressing times, a personal accident policy offered by general insurance companies in India turns out to be the most effective and affordable financial protection tool to overcome financial hurdles.
A personal accident insurance cover, besides providing a death cover for the policyholder also provides insurance cover for disabilities caused due to the accident. The policy broadly covers four situations that provide financial aid in case of an Accidental Death, Permanent Total Disability (PTD), Permanent Partial Disability (PPD) and Temporary Total Disability (TTD).
On financial payouts
For an accidental death of the insured, on submission of the policy documents and necessary medical documents by the insured’s family member, a payout of 100% of the sum insured is extended.
For bodily injuries that cause permanent total disability and are medically irreversible, a payout of 100% or 200% of the sum insured is provided to the insured for assisting the customer cope with the sudden financial expenses arising due to the accident.
For permanent partial disability, such as permanent damage caused to one eye, one leg or one hand and based on the severity of the damage, the payout is defined and paid as per the policy wordings of the cover opted.
Additionally, the standout feature or cover extended to individuals that make the personal accident policy very viable is the payout provided in case there is a temporary total disability caused due to the accident.
In such a scenario of temporary total disablement, the insurance company will pay the insured weekly compensation for loss of pay due to his/her inability to attend work commitments.
For example, if the insured has a fractured leg caused due to a fall that results in temporary total disablement, the insurance company will pay on a weekly basis based on the period of confinement and based on the income of the insured that ranges from 1% of the sum insured to Rs 50,000 per week, whichever is lower for a maximum period of 100-104 weeks.
It is important to note that this feature of payout for temporary total disablement, varies from one insurance company to another, and it is advisable to read the terms and conditions before paying the premium.
Other important points to note is that the scope of the policy is not restricted to accidents taking place in India but also for unfortunate instances caused abroad while traveling for leisure or official work purpose.
The policy does not cover death or injury caused due to suicide or suicide attempts as well as death and injury caused due to terror attacks in India or while you are abroad.
(The writer is Head-Corporate Planning, Customer Service, Product Development, and Operations at Universal Sompo General Insurance Company)