When you buy personal accident insurance, know what does it cover

Experts say customers should maintain personal accident coverage of at least 10 times their annual income

Personal accident insurance is a crucial safety net, designed to cover not just medical expenses but also loss of income, permanent disabilities, and even accidental death. Here's why personal accident insurance is essential.

 

Understanding personal accident insurance

 

It covers an insured person against uncertainties such as death, injuries, and partial/complete disabilities caused in an accident. In case of death, the policyholder’s nominee gets the assured sum.

 

What is not covered

 

Intentional self-injury, suicide, or attempted suicide.

 

Disabilities or injuries that existed before policy issuance.

 

Mishaps occurring during pregnancy or childbirth.

 

Accidents happening under the influence of alcohol or drugs.

 

Accidents occurring while breaking the law.

 

Death or injury due to war, riots, terrorism, or criminal acts.

 

Mishaps during adventure sports like skydiving or mountaineering.

 

Experts say that working adults, particularly those with dependents, should maintain personal accident coverage of at least 10 times their annual income. For those engaged in high-risk occupations like construction, manufacturing, or transportation, specialised policies with enhanced benefits are advisable.

 

Points to kept in mind while getting personal accident insurance:

 

It is important to evaluate a policy's coverage and ensure that it includes accidental death, disabilities, and loss of income due to accidents.

 

Remember that the sum insured should always align with your financial responsibilities and lifestyle.

 

Consider having add-on benefits which can significantly enhance your coverage.

 

“For instance at SBI General Insurance we provide add-on coverages like hospital confinement allowance and ambulance expenses (including air ambulance) as add-on covers with our Individual Personal Accident Policy. While affordability is important, it is always suggested to ensure the premium provides comprehensive protection to you without compromising essential benefits,” said Subramanyam Brahmajosyula, chief roduct & marketing officer at SBI General Insurance.