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Why is personal accident insurance needed?

Why is personal accident insurance needed_ - (A)

An accident can happen at any time without warning and sometimes cause serious damage. Such an undesirable incident can have a significant impact on your finances. Not only can treatment be expensive, but it can also affect your earning potential if you are disabled. To protect yourself and your family from such a situation, it is important that you take out individual accident insurance.

Personal accident insurance is helpful in obtaining financial support for you and your family in the event of an accident that results in death, personal injury, temporary total disability, permanent total disability, and permanent partial disability. In the event of death, the insurance company pays the designated representative 100% compensation (equal to the sum insured). Additionally, insurance companies offer compensation for disability due to an accident, such as loss of speech, limbs, and eyes.

Before, let’s look at the various aspects of accident insurance; Let’s look at some alarming statistics about it.

  • More than 1200 accidents are reported to occur in India every day.
  • According to the Ministry of Road and Highway Transport, more than 4.64 lakh accidents were reported in 2017 alone, and almost 1.47 lakh died as a result of road accidents.
  • The number of reported accidents reportedly increased by 1.68% in 2018.

Importance of personal accident insurance

Many people ignore obtaining accident insurance mainly because they do not understand the importance of coverage. But you need to think about the safety of your family and how they can support themselves if something bad happens to you. If you are involved in an accident that results in death or disability, it will affect your income. When you have a liability like a home loan, it is difficult for family members to cover the costs. You will also have to pay for the treatment. To avoid putting your family in financial trouble, you should invest in the best personal accident insurance.

Personal accident insurance has many advantages, namely:

Peace of mind and family security

In the event of an accident that results in death or disability, it would have a significant impact on your earning potential. Accident insurance offers your family financial protection in the form of accidental compensation and guarantees your financial security. Insurance companies pay 100% compensation in the event of death. Family members can use the amount to pay off debts (if any) and maintain their usual lifestyle. You can also be sure that your family will be financially secure even in your absence.

Minimal documentation

One of the main reasons many people avoid buying insurance is because they believe the process is complicated and requires a lot of paperwork. However, the truth is that you don’t have to worry about documentation when you buy personal accident insurance. You need to provide the basic details on the application form and the insurance company will issue the policy.

No medical examination required

This is another important benefit of accident insurance. Unlike health insurance, where the insurance company requires you to pass medical tests before the policy is issued, you don’t have to take any tests.

Global coverage

Most types of insurance have a geographical limit, which means that they do not offer compensation for accidents outside of India. However, there is no such restriction for personal accident insurance. You can be sure that you will benefit from the benefits regardless of where the accident occurred. You get worldwide coverage.

Simple application process

One of the essential things that most insurance buyers look for when purchasing personal accident insurance is a simple claims process. Regardless of the type of policy you choose, the application process is straightforward. You must file a claim with the insurance company (you can do it online or offline). Once the insurance company has verified the claim, the amount of the claim will be paid.

Ambulance costs

Most insurance companies will pay for an ambulance to transport the injured from the scene to the hospital.

Just as important as financially protecting your family in the event of death, you should also think about how you would handle it in the event of an accident that could result in disability. You must be prepared for unforeseen situations with accident insurance. Make sure you understand the inclusions, exclusions, and other terms and conditions of the policy before signing the policy.

One of the essential things that most insurance buyers look for when purchasing personal accident insurance is a simple claims process. Regardless of the type of policy you choose, the application process is straightforward. You must file a claim with the insurance company (you can do it online or offline). Once the insurance company has verified the claim, the amount of the claim will be paid.

 

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