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Why should you buy a personal accident insurance policy if you live in mega cities in India?

Do you know, what is the easiest way to escape accidents in your daily life? Never leave the comfort of your home. But still, you can’t say you are accident proof because even the four walls of your home can’t keep you protected against accidental hazards. Accidents can also happen while climbing stairs or preparing dishes for your loved ones.

You are lucky if you don’t need to travel by road or rail for work. Besides escaping the hectic daily commuting, you are also avoiding the risk of meeting an accident or getting injured. But how many of us are lucky enough to ditch overcrowded trains and buses? Almost every one of us travel long distances every day for work. In this way, in addition to the hazards of travelling, you also have to endure the risk of accidents which may occur during the course of your journey. This is a major concern for people who travel every day.

YearNatural (Accidents due to nature’s force)Unnatural (Accidents due to human error)Other (Accidents due to heart attack, poisoning, etc.)TotalRate
201123,6903,67,194039088432.3
201222,9603,72,022039498232.6
201322,7593,77,758040051732.6
201420,2014,61,55611472845175736.3

Source: The Times of India

Life is unpredictable. In fact, worst things happen when you least expect it. So, what would happen if you meet an accident on your way back home or while playing with friends in the playground? Scary, isn’t it?

The same thought crossed my mind a few days ago. It was just another Monday morning when I was getting ready to leave for the office. As the clock struck 8.30, I kissed my two-year-old daughter Pihu, waved goodbye to her and my wife Shalini, and set out to drive to my office. Unlike any other Monday morning, there wasn’t much traffic today, but as soon as I reached the highway, another car zoomed past me. I thought that the driver might be in a hurry to reach his destination. There was a “Baby-on-board” sticker at the back of the car which immediately brought a smile on my face as it reminded me of my two-year-old daughter who has just started calling me “da da”. I was lost in my thoughts when suddenly I heard loud horns and screeching of tyres. The tractor on the other lane had suddenly swerved right and would have hit the car if the driver had not applied the brakes on time. Seeing what unfolded in front of my eyes in a fraction of seconds completely shocked me. Soon a series of questions popped up in my mind, like “what if the driver had not applied brake at the right time?” “What would have happened to the baby?” Even worse, what if it was me who met with an accident? Would Shalini be able to take good care of Pihu in my absence?

Number of road accidents in some of the mega cities, 2015
Name of the CityFatal AccidentsTotal AccidentsKilledInjured
Delhi1,5828,0851,6228,258
Mumbai58623,4686114,029
Chennai8597,3288867,320
Kolkata4124,3474223,329
Bengaluru7084,8347134,057
Ahmedabad3181,8373281,722
Surat251903257773
Hyderabad4252,7614252,382

Source: pibphoto.nic.in/

It is imperative to secure oneself against such misfortunes, and buying a personal accident insurance is the right step which you can take towards it. This insurance policy offers coverage if the policyholder dies or becomes disabled following an accident. Besides paying out after the death of the policyholder, it would also pay in case of permanent or partial disablement. Term insurance would help your family only if you die and health insurance would only take care of hospitalisation expenses, it would not secure your family from the loss of income. Therefore, it is advised to buy a personal accident insurance that safeguards you against loss of income following an accident.

What does a personal accident cover?

Accidental death benefit: In the case of death of the policyholder during the policy tenure, the nominee gets the complete sum insured as mentioned in the policy document.

  1. Permanent total disability benefit: If due to accident, the policyholder suffers with permanent total disability like loss of limbs, sights, etc. the insurer will pay the sum insured.
  2. Reimbursement of accidental hospitalisation expenses: If there is a minimum 24 hours hospitaliation following an accident, the policyholder can approach the insurer to compensate for hospitalisation expenses.
  3. Accidental hospital daily allowance: Some insurance companies offer per-day allowance to policyholders to cover their daily hospital expenses like food, transport, etc.
  4. Additional features: Here are some of the additional benefits which you can enjoy if you have a personal accident insurance policy in India:
  • Child education benefits
  • Legal and education benefits
  • Injuries due to terrorism

How much coverage is sufficient?

Any accident or disability can have both physical and financial impact; therefore, the cover should be sufficient to:

  • Ensure the financial well-being of the family
  • Deal with financial goals
  • Cover medical expenses

How much it cost to buy a personal accident insurance policy?

The premium of a personal accident insurance is decided on the basis of the occupation of the person. It means, a 25-year old airline pilot will pay more premium as compared to a 50-year old teacher. To compute the premium, most of the insurers have divided occupations as per the risk involved. Here is an example:

Class 1 (Low Risk)Class 2 (High Risk)Class 3 (Very High Risk)
TeachersContractorsAirline Pilots
ArchitectsBuildersJournalists
PainterGarage MechanicMountaineers
DentistVeterinary DoctorCircus Performers

A 26-year-old army man needs to pay around Rs 1397 for a sum insured of Rs 15 lakhs as compared to a 36-year old teacher who needs to pay nearly Rs 914 for the similar coverage amount.

Which should you pick: A rider or a standalone policy?

It is possible to buy accident cover both in the form of a rider and a standalone policy. However, most riders often limit coverage, as they only cover the accidental death and permanent disability. On the other hand, a standalone policy offers comprehensive coverage by including different types of losses and accidents, including partial or temporary disablement and loss of income.

Moreover, if your employer is offering personal accident insurance, then also, you should go for an individual policy because the former is not as comprehensive as the latter. An individual personal accident cover can also be customised as per your needs.

Considering the fast-moving life of metropolitan cities, it makes sense to buy personal accident insurance policies, which bridge the gap between life and health insurance policies. Irrespective of where you are living and what you are doing, buy a comprehensive personal accident insurance policy. After all, it is better to be safe than sorry.

 

 

 

About sujoydhar

Sujoy Dhar is a business and technology and blogger. He is driven by the need to be creative and says that writing for various web properties allows him to stay up to date on one of the most rapidly evolving industries around. Each day provides Dhar with a new opportunity to educate readers about tech news and advances that help change the world for the better.

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