OPTIMAL COVERAGE

The sum insured under a personal accident insurance plan depends on your income. It is expressed as a multiple of your income which allows you to opt for an optimal coverage based on the financial loss that you might suffer as a result of an accidental contingency. Since the sum insured is based on your income, you can get a replacement of your income in case of accidental death or disablement which would help you and your family members meet your lifestyle expenses and fulfil your financial goals.

COVERAGE FOR FAMILY MEMBERS

Personal accident insurance policies can be taken to cover your spouse and dependent children as well. The sum insured is offered on an individual basis and separate coverage levels are allowed for covering your family members. The coverage of the family members also depends on your coverage. If your family members are dependent on you and you want to cover them in a personal accident plan, coverage for your spouse would be allowed up to 50% of your sum insured and for each child it would be limited to 25% of your sum insured.

LUMP SUM CLAIM

Being a fixed benefit plan, a lump sum claim is paid under personal accident policies if you suffer from accidental loss of life or disablement. 100% of the sum insured is paid in case of death and permanent total disablement.

COVERAGE FOR PERMANENT PARTIAL DISABLEMENT

Permanent partial disablement is also covered under the personal accident policy. In case of such disablements a portion of the sum insured is paid depending on the severity of the disablement that you suffer. This portion ranges from 25% to 75% of the sum insured depending on your disability.

TEMPORARY TOTAL DISABLEMENT

Even if your disability is not permanent in nature, it would be covered under a personal accident policy if it renders you bed ridden. Such disability is called a temporary total disablement and in such cases you receive a weekly benefit under the policy. 1% to 5% of the sum insured is paid on a weekly basis for each week of disability subject to a maximum number of weeks specified in the policy. This weekly benefit helps you tide over the temporary financial disturbance which you might suffer due to the disability.

OPTIONAL ADD-ONS

Individual personal accident insurance plans allow optional additional coverage benefits which can be chosen with the main policy. These benefits are called add-ons and each add-on comes with an additional premium which you need to pay for choosing the coverage benefit. Some of the commonly available add-ons include the following –

• Funeral expenses – this add-on covers the cost of funeral incurred in case of accidental death
• Ambulance costs – the cost of hiring an ambulance is covered under this add-on
• Transportation expenses – the cost of transporting the dead body to the residence of the insured is covered under this add-on
• Medical expenses – this add-on covers the costs incurred on hospitalisation if you are hospitalised for an accidental injury

CHILDREN EDUCATION FUND

This feature is offered either as an inbuilt coverage benefit in some plans or as an optional coverage benefit under others. The coverage provides for the payment of a lump sum benefit if you suffer from accidental death or permanent total disablement. The lump sum benefit is paid in addition to claim amount paid under the policy. This benefit is paid to enable you or your family to meet the cost of education of your dependent children when you lose your ability to work and earn.

AFFORDABLE PREMIUMS

Premiums payable under an individual personal accident insurance policy is quite low and affordable. You can easily avail a high sum insured for an affordable premium and ensure complete protection against accidental contingencies.

CUMULATIVE BONUS

Many personal accident insurance plans allow cumulative bonus if no claim is made in a policy year. Under this bonus, the sum insured is allowed to increase by a specified percentage for every claim-free year. The sum insured increases on a cumulative basis without a proportionate increase in premium allowing you to enjoy an increased coverage for not making claims.