Accidents are not only a big problem resulting in deaths but there are chances of permanent or temporary disability as well. In any case, accidents can cause a break in your regular income. A personal accident insurance policy is used by individuals to cover against these problems along with several other features. The situations covered by accident insurance policies and the percentage of coverage by these policies are given as follows:
1) Death – 100% sum assured to the nominee is paid. There are companies who even pay for children’s education bonus for maximum of 2 children for Rs. 5,000 or Rs. 10,000.
2) Permanent Total Disability – Sum assured is paid to the insured. There are companies who pay 110% to 125%. For example – loss of both arms, loss of speech, etc.
3) Permanent Partial Disability – A percentage of assured sum is paid on either on weekly or on monthly basis. For example – loss of one eyesight, loss of one hand or finger, etc.
4) Temporary Total Disability – A part of assured sum is paid. Some companies pay 50% while some pay 100% up to maximum of 5 to 10 lakhs. For example – Fracture in hands/ legs, etc.
Exclusions from accident insurance cover
Deaths and disabilities caused due to the following reasons are not covered under accident insurance:
- Suicide attempts, intentional injuries
- Intoxicating liquor or drugs
- Already existing physical or mental defect
- Actions confirming breach of law due to criminal intentions
The benefits are also not for those engaged in armed forces, pilots and crew members and any person involved in risky performances.
Premium
Premium for accidental policies are dependent on the kind of occupation you are into and not on age. A person engaged in performing stunts is more prone to accidents than a management professor. Insurance companies divide the categories as risk level 1 and risk level 2 depending upon the risk involved. Since risk level 1 is less risky, therefore the premium charged is less in comparison to what is charged for persons coming under risk level 2.
Review of Accidental Policies
General Accident Suraksha is one such policy that gives cover against terrorism. The claim settlement ratio is highest for
Bajaj Allianz Premium Personal Guard is highest at 91% followed by
General Accident Suraksha at 71%,
Starhealth Accident Care at 66% and
Apollo Munich Accidental Plan at 50%
and they allow maximum sum assured for Rs. 10-25 lakhs, Rs. 1-50 lakhs and up to Rs. 25 lakhs respectively for companies 1, 2 and 3. Tata AIG Personal Guard allows a maximum assured sum of Rs. 1 crore.
Entry age is 18-65 years for 1, 5-70 years for 2, 18-70 years for 3 and 4. Bajaj Allianz Premium Personal Guard offers 200% of sum assured in case of permanent total disability while others offer 100% of sum assured. Cumulative bonus offered by companies is 5% per claim free year subject to a maximum of 50%. Some companies offer 5% bonus up to a maximum of 25%.
Claim settlement ratio and the premium are the two things which carry maximum weightage for people while picking up accidental insurance policies. Looking at the different policies from this angle, Bajaj Allianz Premium Personal Guard seems to be a better option.
