Personal accident insurance is a mandatory policy to have if you are a vehicle owner in India as per the India Motor Tariff, 2002. You can waive off purchasing this policy if you already have a standalone personal accident insurance policy or had purchased it with a previous vehicle. Now, while many people may have bought this form of insurance to comply with the prevalent laws, they may not be aware of the exact extent of the coverage of this policy. This article aims to help you understand how your personal accident insurance policy, bought along with motor insurance, can help you in different unexpected situations.
- Coverage in case of permanent disabilities due to an accident
Road accidents are, unfortunately, quite a common occurrence and can happen to anyone at any time. Sometimes, an accident can be so serious as to cause a permanent disability to the one driving the vehicle. Dealing with the financial demands of a permanent disability can be exhausting. The personal accident insurance policy can help you preserve your savings from being wiped out in an instant.
As per the policy guidelines, the injured policyholder is liable to receive lump sum pay-outs in this situation. These pay-outs are dependent on the type and severity of your disability. For instance, loss of sight in one eye would mean a 50% sum insured pay-out while the loss of sight in both eyes would lead to a 100% sum insured pay-out.
A great feature of permanent disability coverage is that if you are diagnosed with this kind of disability even after months of the accident, you can raise a claim and receive pay-outs.
- Coverage in case of temporary total disability
In many cases, the injuries may not be so severe as to cause a permanent disability but may temporarily disable the injured. A temporary total disability can be healed after a particular period and the injured can return to their original productive capacity. Personal accident insurance can aid you in dealing with finances during the healing period. You will receive pay-outs as per the severity of your disability. It is up to you how you wish to make use of these pay-outs.
- Coverage in case of accidental death
The most grievous of accidents and consequent injuries may even lead to the death of the policyholder. In such an unfortunate scenario, the dependant family can cope with the financial demands with the death benefits paid by the motor insurance provider.
- Additional coverage
The coverage mentioned in this section may differ from insurer to insurer.
Children’s education cover: Some motor insurance providers offer to cover the education of the policyholder’s children in the case of accidental death or permanent disablement. This ensures to a certain extent that such untimely incidents do not severely affect the children’s future.
Ambulance charges: Certain insurers also cover the charges that you may incur when being escorted to the hospital/medical facility after the accident.
Hospitalization aid: This coverage can be bought additionally and aids in payment of the treatment expenses for injuries caused to the accident.
There may be several conditions attached to each of the coverage sections mentioned here. So, whether it is a personal accident insurance policy or the bike insurance policy you are buying it along with, it is vital to read the policy wordings. It will not only make you an aware policyholder but also give you a sense of assurance for the coverage you are getting.