Insure against disability from accidents, secure your future

Tags: Insurance

These policies cover partial and total disability of a policyholder

Life has become very fast-paced in the past few years and the risk of lifestyle-related diseases, as well as accidents, have increased.

While the risk of any unfortunate event due to an accident cannot be reduced, people can curb the financial losses with the help of a personal accident policy.

A personal accident policy covers against risks, like partial and total disability of a policyholder. It also covers temporary and permanent disabilities where a policyholder is unable to use limbs or loses eyesight. These policies are benefit-based and insurers pay lump sum payment of the sum insured on occurrence of an unfortunate event. The family may use this payment for the policyholder’s treatment or any other purpose.

“Personal accident policies have started catching up in the last few years. As accidents are common these days, banks encourage their accountholders and loan borrowers to opt for these policies and account for almost half of the sales of personal accident policies,” said M Ravinder, national head of accident and health at Tata AIG General Insurance.

Risk categories: The risk perception for insurers varies from one category to another. Insurers have categorised policyholders into three broad categories based on their job description. The chances of accident and, therefore, the risk perception for workers involved in electrical installation with high-tension supply, construction workers, workers in underground mines are the highest, and consequently, the premium is also higher.

Second category includes superintended engineers, paid drivers, veterinary doctors and builders, for whom, the risk is comparatively lower. Professionals involved in medical practice, law, banking and other desk jobs are considered least risk prone and premium rates are the lowest.

Premium: Annual premium for a 35-55-year-old with a Rs 25 lakh sum insured from Royal Sundaram Alliance Insurance comes out to Rs 5,015. Since the risk varies from profession to profession, the premium remains same even if the age increases.

Claim process: In order to register a claim, you need to immediately inform the insurer with all the details of accident and extent of accident related injuries. Claim form should be duly completed along with medical certificate, and medical examiner’s report should be submitted. Details of treatment rendered by the attending doctor, hospital or nursing home should be provided. Some insurers might also ask for a certificate from the employer to prove that the insured was on leave during the period.

These policies are renewable as long as the policyholder does not attain the maximum age as permissible under the policy. Most insurers, like Apollo Munich Health Insurance and Future Generali India Insurance, keep the cut-off age limit at 70 years. Moreover, unless a death claim is made, policyholders can renew the policy after claim for partial and temporary disabilities.

“Since these policies are benefit-based and does not cover actual hospitalisation due to accident, these should be used as a supplementary cover and not a complementary insurance policy. Personal accident policies provide additional sum insured, which can then make up for the lost income due to an accident,” said Shreeraj Deshpande, head of health insurance at Future Generali India Insurance.

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