Personal Accident Policy
Can you guys suggest a decent personal accident policy which covers majority of the requirements.
All personal accident product are indemnity based and similar offering two key benefits
1. Money on accidental death , accident need to defined and worded as sudden , uncertain and with impact . You need to read terms and exclusions on definition of accident .
2. Money on disability , read the exclusions. You shpuld also read thst how the money will be paid .
All leading insurers have similar product and price is also similar .
So dont worry . Go ahead and insure .
Just a qualification to Shailesh’s answer: PA policies are not indemnity based, but fixed benefit policies. The capital sum insured specified in the policy is paid in the event of death or disablement as per pre-determined formula given in the policy.
Having said that, there are some covers such as medical expenses which are on actuals and subject to reimbursement which only are indemnity based.
First things first, Personal Accident is much more than Death only coverage. Glad you realised that and are seeking coverage for MORE requirements.
Accidental Death benefit is covered in all PA policies, also, in many tied coverages offered along with Debit/Credit Card, Bank Account etc at cheap price or even free of cost in many cases but still the distinguishing features which make Individual Personal Accident policies offered by Non Life Insurers, a must buy product for entire Earning Population are:
1)Temporary Total Disablement(T.T.D)-Provides weekly compensation benefit which covers any loss of pay(subject to Sum Insured limit opted) due to injuries which are not permanent in nature but confines one to Bed for a certain period, most common example being Fracture.
2)Medical Expenses-This benefit covers OPD expenses in addition to hospitalization expenses incurred after accident and subject to claim being admissible in any of the basic tables opted.
These two coverages should be kept in mind while purchasing a Standard PA Policy with a particular emphasis on adequacy of Sum Assured under TTD.
Overall Sum Assured should also be carefully selected and as per normal market trend, 72 times of gross monthly salary/6 times of yearly income is allowed.
Few other Optional Covers like hospitalization expenses, education fund, loan secure are offered by various insurers and can be selected on need basis.
As the premiums are very meagre in Personal Accident policies hence it should ideally be purchased in addition to Health Policy.
The above features discussed are in line with Traditional PA policies with slight variations in coverages and Optional covers across various insurers.
IRDAI has mandated a standardized PA product also wef 01.04.2021 called Saral Suraksha Bima with common coverages and add ons across all companies with only difference being in premium rates.
Link of Saral Suraksha Bima FAQs