Top Benefits of Investing in Personal Accident Insurance

Life’s unpredictable – and the pandemic did a great job of demonstrating it. You may have slowly come to realise how we’re just one health emergency or an accident away from financial instability!

As distressing accidents may be, they also cause significant financial strains. Fortunately, personal accident insurance is one way to ensure financial protection in cases of accidental injuries, disabilities, or worse, death. As grim as this topic may be, it’s always a good idea to prepare for all eventualities.

So, let’s explore how personal accident insurance can safeguard you and your family and grant you both financial security and peace of mind.

Before discussing the benefits of personal accident insurance, let’s first understand what it is.

Also read: What is Group Health Insurance?

What is Personal Accident Insurance?

Personal accident insurance offers financial compensation in cases of accidental injury, disability, or death, either at the workplace or in day-to-day life. It’s created to protect the policyholder from the unexpected financial burden stemming from life-changing accidents.

Types of personal accident insurance policies include accidental death, accidental injury, permanent total disability, and temporary total disability.

Also read: What is Group Personal Accidental Insurance?

How is Personal Accident Insurance Different from Other Types of Insurance?

At first glance, a personal accident insurance policy may appear similar to its life insurance or health insurance counterpart. However, that’s not the case.

Here’s a quick comparison of the key features of the personal accident insurance policy, health insurance policy, and life insurance policy:

Personal accident insurance policy is far more niche, whereas health and life insurance cover the broader scopes.

Suggested read: Type of Health Insurances in India

Benefits of Personal Accident Insurance

1. Financial Protection in Case of Accidents

1.1 Coverage for death by accident

Personal accident policy grants a lump sum payout to the policyholder’s family in case of death by accident. Such financial support helps cover immediate expenses such as funeral costs, ensuring that loved ones aren’t burdened financially in such difficult times.

The lump sum payout offers financial support to the family and ensures they have money available to meet their needs.

1.2 Coverage during permanent total disability

Permanent total disability benefit results in the payment of a fixed monthly income to the policyholder who is permanently and totally disabled due to an accident. This includes loss of limbs and eyesight in one or both eyes or irreversible loss of speech. 

The objective is to offer them financial support while managing long-term costs such as medical care, rehabilitation, and household expenses. This support can be crucial, especially if the disability prevents them from working or reduces their earning capacity.

1.3 Permanent partial disability coverage

Permanent partial disability coverage involves the payment of a fixed monthly income to a partially disabled policyholder. Here, they might have lost partial function of a body part, such as loss of a limb or an eye, but have not experienced total disability.

The payout could be invested in managing ongoing medical expenses or home adaptations required for day-to-day needs after the life-altering injury.

1.4 Temporary total disability

Temporary total disability benefit grants financial assistance when a policyholder is unable to work during a period of temporary disability resulting from an accident.

Such support allows them to focus on medical care, rehabilitation, and recovery so that they can resume their former life. Policyholders may utilise the funds to cover living expenses during injury and make up for the lost income.

Suggested read: Benefits of Group Health Insurance

2. Medical Expenses and Hospitalisation Coverage

2.1 Medical reimbursement

This feature of a personal accident insurance policy ensures that the policyholder is reimbursed for all valid medical expenses incurred due to an accident. It covers everything, from diagnostic tests to surgeries to post-operative care and follow-ups with experts.

It covers the overall cost of treatments and procedures, thereby reducing out-of-pocket expenses and ensuring timely care minus the financial strain.

2.2 Hospital cash allowance

A hospital cash allowance grants a daily cash benefit for each day a policyholder is hospitalised due to an accident.

This benefit covers non-medical expenses during recovery, such as transportation, food, etc. The daily financial support during hospitalisation adds another layer of financial security to cater to personal expenses.

2.3 Ambulance charges coverage

Almost all personal accident insurance policies cover ambulance expenses. This ensures that the policyholder receives timely medical assistance in case of an emergency without having to worry about transportation costs.

This makes emergency healthcare more accessible in a situation where every second counts.

Also read: What is Group Term Life Insurance?

3. Additional Benefits and Add-ons

Several personal accident insurance policies offer additional benefits and add-ons that go beyond the boilerplate coverage and terms. Such add-ons offer coverage and relief in niche areas that may otherwise go overlooked.

3.1 Education Grant for Children

In case of accidental death or permanent total disability, some policy add-ons support the policyholders children in continuing education without any interruptions. The education grant covers tuition fees and standard school expenses, ensuring that the accident does not affect the children’s academic pursuits.

3.2 Adaptation and Rehabilitation Coverage

Some personal accident policies automatically (suo motu) offer coverage for home modifications and rehabilitations in case of permanent or temporary, total or partial disability. In some cases, this benefit is available as an add-on to facilitate the policyholder’s smooth recovery, allowing the policyholder to choose this coverage for an additional premium.

Whether it’s installing ramps or stair lift motors or covering the cost of undergoing physiotherapy, this policy covers the cost of such essential services.

However, it’s important to note that the specific terms and conditions of the policy may vary. The extent of coverage for home modifications and rehabilitation can differ depending on the policy, and there may be limitations or requirements regarding the types of modifications or rehabilitation services covered. To get a clear understanding of the specific benefits and coverage provided by your personal accident policy, it’s recommended to carefully review the policy documents or contact your insurance provider for more information.

3.3 Legal and Funeral Expenses Coverage

In some cases, you may have to bear legal fees or funeral expenses in the aftermath of an accident. But what if it could be passed on to the insurance company? This policy add-on caters to this specific requirement.

Whether you need money to take legal action after an accident or cover funeral costs, this benefit ensures that you or your family do not face hardships during such difficult times.

Also read: What is Employer Employee Insurance?

4. Global Coverage and Flexibility

Personal accident insurance policies may offer flexible coverage regardless of your geographic location. This ensures that you and your family stay protected globally, no matter where you go.

4.1 Worldwide Coverage

Personal accident insurance policies extend worldwide coverage, making it crucial for frequent travellers, expats, and digital nomads. Whether you get in an accident abroad or at home, the insurance company will have you covered, irrespective of your location.

It offers even greater value if you meet with an accident in a country that results in a high financial burden in terms of medical care.

4.2 Flexibility in Choosing Sum Insured

With personal accident insurance, you have complete flexibility in selecting your coverage amount. The value is calculated based on your specific needs, financial soundness, and associated risk factors.

Such a comprehensive and detailed analysis ensures that you’re neither under nor over-insured. Plus, you can always update the sum insured as and when your circumstances change!

Quick read: Copay in Health Insurance

5. Peace of Mind and Financial Security

Enjoy the psychological comfort of knowing that you and your family will be taken care of even in the event of an accident. Such confidence is invaluable in helping individuals and families navigate challenging situations with comparative ease and assurance.

5.1 Psychological Benefits

Simply knowing that you or your family is covered under personal accident insurance grants immense mental relief and peace. By easing any anxiety surrounding financial stability, you and your family can focus on recovery or grief. The resulting psychological advantage makes you more resilient.

5.2 Financial Security for Family

In the unfortunate and extreme event of your death or permanent and total disability, personal accident policy acts as a financial safety net for affected families.

It helps them continue with their lives and cultivates long-term financial well-being as it covers immediate and future expenses. It also protects dependents from sudden financial burdens in extremely challenging times.

Also read: Pre-existing Disease in Health Insurance

How Onsurity’s Group Personal Accident Insurance Benefits You?

Onsurity offers several benefits of Group Personal Accident Insurance that grant comprehensive coverage to businesses and employees in the face of unforeseen accidents. Some of the key benefits of the personal accident policy include:

• Holistic coverage: From death by accident to temporary or permanent total disability, Onsurity caters to a wide range of scenarios. This ensures that employees are financially protected in all situations without passing on the liability to companies. A win-win situation for all.

• Healthcare and rehabilitation support: Every personal accident policy comes with coverage for ambulance expenses, medical reimbursement, rehabilitation expenses, and more. This eases the financial burden on employees and employers.

• Education grants for dependents: Ensure that your children and other dependent loved ones get a fair chance at education. Onsurity offers grants to cover education-related expenses to empower the employees’ children in case of severe disability or death.

A Group Personal Accident Insurance is a mark of trust between employers and employees. It not only demonstrates that they care about their well-being and financial safety but also proves that they’ll come through to help them and their families in times of need.

Onsurity’s easy onboarding experience, paperless and hassle-free claim processes, and competitive premium pricing make it ideal for businesses looking to invest in comprehensive accident insurance solutions.

Conclusion

Accidents can be a traumatising and life-changing experience—and personal accident insurance is a shield that safeguards you and your family. Having access to resources and financial backup to cover medical, rehabilitation, adaptation, and funeral expenses attracts significant peace of mind amidst uncertain times.

Additional features of this policy, such as global coverage and education grants add to the layer of protection that keeps individuals and families safe from the financial fallout of accidents.

Witness how Onsurity protects your business and your employees from accidents by scheduling a demo with us today!

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