What is Personal Accident Policy?

Personal Accident insurance or PA insurance is an annual policy which provides compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events. It is different from life insurance and medical & health insurance. PA insurance provides 24-hour worldwide insurance protection. You can either take a PA policy for yourself or a group policy for your family, protecting you and them anywhere in the world, anytime of the day.

Types of personal accident policy

  • Individual Accident Insurance : This policy guards an individual in the event of any intentional or unintentional mishap. The incident may cause impairment, whether short-term or lifelong wounds or even demise.
  • Group Accident Insurance : As the term itself suggests, it is not meant for individuals and is taken by employers for their employees. Depending on group size, discount on premium might be offered as well. It is a good incentive/ value added advantage for small organizations as it is available at low cost. However, this is a very basic plan and may not offer advantages like that of an individual plan (subject to terms of the plan). Most of IRDA approved policies include major events or cases, such as impairment, whether short-term or lifelong or even untimely demise.

Importance of personal accident cover

Personal accident insurance plays a vital role with health insurance. Life is so uncertain that accidents can happen at any point of time. So just imagine, you are returning from office and going back to your home and suddenly your car gets crashed to other. Isn’t it scary? The more scary thing is watching your family struggling for any of these. In this case, what you can really do?

Here's why personal accident insurance is so important:

  • Family security : If any mishaps occurs, and if suddenly your income stops what will your family do? So, for that family security is most important.
  • Permanent total Disability benefit: Total permanent disability means if a person is unable to work in their own or any occupation for which they are suited by training, education or experience.
  • Permanent partial disability benefit: Permanent partial disability means if a person is having an injury that resulted in loss of speech, eyesight, feet or hands.
  • No medical test and documentation required : A person need not have to undergo through any medical test neither any documentation is required for purchasing the policy.
  • Accident death : If you met with an accidental death, the nominee is entitled to get 100% sum insured as per cover of the policy.

Who should buy personal accident policy?

Irrespective of your age, occupation and health, it is strongly advised to purchase accident insurance. In fact, you should buy this plan as soon as you start earning. It is more important for those who have taken loans, vehicle loans, and mortgages because this would offer protection towards repayment of the outstanding balance in the event of a mishap. Unlike life insurance policy, the premium of this policy will be decided by your occupation rather than age.