Personal accident insurance acts as a financial shield that helps you and your family overcome the losses incurred due to an unexpected accident.
In simple terms, it is a type of insurance that helps you get reimbursed for personal injuries, disablement and even death resulting from your personal accident.
If you are planning to purchase personal accident insurance, then this page is going to be very helpful. We will discuss the main features of personal accident insurance to consider before making a buying decision.
Understanding Personal Accident Insurance and Its Coverage
Before moving to the features of accident insurance, it is essential to understand its purpose, workings and the extent of coverage.
As mentioned, personal accident insurance is a category of insurance that offers compensation for injuries, disabilities and deaths caused by unprecedented accidents.
The main purpose of buying a personal accident insurance plan is to deal with the hefty expenses you suffered during the accident. Not only does it cover the cost of medical expenses resulting from your accident, but it also reimburses you and your nominees in case of disablement and death, respectively.
In addition to these, there are many other benefits offered by personal accident insurance, which we will discuss in the later sections of the blog.
What is Covered Under Personal Accident Insurance?
The coverage of personal accident insurance differs from one plan to another. For instance, the
Reliance Personal Accident 360Shield Insurance covers the following risks:
- Death
- Partial Total Disablement (Loss of both eyes or two limbs or one eye and one limb)
- Loss of One Eye or One Limb
- Permanent Partial Disablement
What is Not Covered Under Personal Accident Insurance?
- Suicide
- Natural Death
- Pre-existing disabilities
- HIV-AIDS
- Self-inflicted Injuries/Losses
- Loss resulting from war, nuclear attacks, etc.
- Loss resulting from intoxication and drug abuse.
- Pregnancy-related claims
- Loss due to violation of legal regulations.
Benefits and Features of Personal Accident Insurance
Covers Accidental Death
Accidental deaths are devastating, both mentally and financially. While death is inevitable, it is possible to stay prepared for financial challenges by investing in accident insurance.
One of the main features of personal accident insurance is coverage for the death of the insured person. Most PA plans offer compensation equivalent to 100% of the base sum insured + any accumulated cumulative bonuses in case of accidental death.
This amount allows your nominees or dependents to overcome the financial challenges in your absence.
Covers Permanent Total Disablement
Personal accident insurance plans also offer compensation in case of permanent total disablement. If you end up losing both eyes or two limbs or one eye/one limb, you will also be reimbursed as per the policy terms.
With Reliance Personal Accident Insurance, you can claim up to 200% of the base sum insured + any accumulated cumulative bonuses in case of permanent total disablement.
Covers Permanent Partial Disablement
Not just total disablement personal accident insurance also offers compensation in case of permanent or temporary partial disablement.
With our plans, you can claim 50% of the base sum insured + any accumulated cumulative bonuses in case of permanent partial disablement and up to 75% of the base sum insured + any accumulated cumulative bonuses in case of temporary complete disablement.
Offers Child Education Fund
Another commendable feature of personal accident insurance is that it offers funds for the education of your dependent children in case of accidental death.
This financial support from your insurance plan ensures that your kids' education is not hampered by financial challenges in your absence.
What are the Tax Benefits of Personal Accident Insurance?
Premiums paid towards personal accident insurance are not eligible for tax deductions under Section 80D of the IT Act. Those are only available for health insurance premiums.
However, there can be some cases where you can enjoy the
tax benefits of personal accident insurance under Section 80C of the Income Tax Act. This is true when you have purchased personal accident insurance as a rider with your life insurance plan.
Buy Reliance Personal Accident Insurance for 360-degree Protection
Whether you have
health insurance, term insurance, or both, nothing can replace the benefits and features offered by personal accident insurance.
Our
personal accident insurance plans are highly sought-after for the comprehensive coverage and benefits they are bundled with. We offer reimbursement for your medical expenses incurred in the event of an unexpected accident.
You can claim reimbursement of up to 40% of the compensation paid or 20% of your sum insured, whichever is lower. Not just that, we also offer a 5% increase in the CSI (Capital Sum Insured) in case of accidental death or permanent complete disablement for every claim-free year.
In addition to these benefits, we offer a 100% claims settlement ratio and a swift process for filing a personal accident claim.
To enjoy these benefits and exciting discounts, buy your personal accident insurance online NOW!
Frequently Asked Questions
Can I buy personal accident insurance with my existing individual health insurance plan?
Yes. You can purchase personal accident insurance with your standard health insurance plan. It offers dedicated coverage for medical expenses resulting from your accidental injuries. In addition to it, it also offers compensation in case of accidental death and disablement.
What is the validity of personal accident insurance?
The majority of personal accident insurance plans come with a tenure of 12 months or a year. It offers coverage and compensation for accidental events that happened during this period. However, the validity of these plans can vary based on insurance providers.
Can I purchase personal accident insurance for the whole family?
Yes. You can purchase personal accident insurance as a family floater plan. This plan will cover the expenses resulting from accidental injuries and losses suffered by all the insured members of your family. Contact us for more information.