Why Do You Need to Buy a Personal Accident Insurance Policy?

“I have always done my stunts on my own … I have never allowed anybody to do them for me. The day I will not be able to do my stunts, I will stop working in action films”, this is the real passion and zeal which make Akshay Kumar the real ‘Khiladi’ of Bollywood. The actual stuntman of the Hindi film industry, Akshay Kumar hates body double and prefers to do all his stunts. Even in the film ‘Holiday: A Soldier is Never off Duty”, which I watched last Sunday on TV, he had jumped off the terrace and engaged in a fistfight with the villain.

You might be thinking why I am talking about Akshay Kumar in an insurance article. Am I a huge fan of Akshay Kumar? Before you guess anything more, let me tell you one thing, Mr. Kumar bought a personal accident insurance policy, while working in one of his films, to get the financial protection in case something went wrong.

No matter how much we plan; we cannot predict or change the future. So when Akshay Kumar, one of the highest paid actors in Bollywood, bought the personal accident insurance policy to ensure complete financial protection in case of any mishappening, it becomes important for a common man to consider buying the policy. After all, like films we do not get retakes in life.

Why should you go for a personal accident insurance policy?

The probability is high that you already have insurance policies— life, health, and motor— and thus, you feel completely protected. You may hardly feel the need to buy a personal accident insurance. However, perhaps you are making a wrong decision. Are you sure your policies are as comprehensive as personal accident insurance policies?

Consider the case of Mr. Rahul Sharma, the breadwinner of his family. Being a family man, he bought a term insurance and family health insurance. Armed with both the insurance policies, he thought he had managed to secure the future of his family. However, life had planned something else for him. On a fateful day, he was driving on a highway when a car from the other side slammed into his car. The accident left Rahul incapacitated for at least next nine months. While his income stopped, other expenses remained same. Above all, medical expenses became the new part of his expenses.

As Rahul was alive, his term plan did not pay anything. Also, his health insurance covered hospitalization costs and for the rest, he used his rainy day savings. Suddenly, reality struck, and Rahul asked himself if he could have done anything to avoid the financial burden? A simple answer to this question is a personal accident insurance policy.

The policy offers coverage against accidental death or permanent total disability due to an accident. This policy pays out in the case of permanent or partial disablement. Also, it offers coverage in case of accidental death. Some personal accident insurance policies also offer an accidental hospital daily allowance and coverage against accidental hospitalization expenses.

Why should you buy a personal accident insurance in India?

Whenever we read the newspaper, we see minimum four accident news every day. According to the National Crime Records Bureau (NCRB), over 15 times more people died in human error induced accidents than natural disasters in 2014.

Source: The Times of India

Indian roads became more dangerous in 2015 with the number of deaths increased to 1.46 lakh. Around 350 people die every day on Indian roads, which are one of the most dangerous roads in the world. Accidents come unannounced, and therefore, it becomes imperative to buy a personal accident insurance policy, if not for ourselves then at least for the sake of our families.

What a personal accident insurance policy covers?

Some of the other features of the policy are:

In addition to the traditional benefits, the policy offers the following benefits:

• Legal and education benefits
• Child education allowance
• Ambulance expenses
• Worldwide coverage
• No medical test required for policy issuance
• Coverage for all types of accidents like road, rail accidents or accidents due to natural disasters and terrorism act

Who should buy it?

Whether you are a homemaker or a young professional, personal accident policies are recommended for all adults. Accidents can happen to anyone, irrespective of their age and occupation, and therefore, it is important for everyone to buy the policy which offers the following two benefits:

• It gives financial protection to the policyholder if he/she gets disabled after an accident
• It covers the minor one’s accidents also, like slipping in a bathroom, falling off a bicycle, etc.

How much cover should be purchased?

An accident or disability can compromise your ability and in the face can add to your expenditure. Therefore, the extent of coverage should be enough to:

• Maintain the family’s current lifestyle
• Meet financial goals
• Cover expenses like physiotherapy sessions, home treatment, etc.

Is it affordable?

Personal accident insurance policies are one of the cheapest insurance policies available in the market. For a few hundred rupees a year, you can get coverage of several lakhs. Moreover, unlike other insurance policies, the premium of a personal accident policy does not depend on the age of the insurance applicant as it is decided on the basis of the occupation of a person. It means the premium of a 30-year old army man will be higher as compared to a 50-year old teacher. For the purpose of premium calculation, most of the insurers have divided occupations under the following heads:

Further, the payout depends on the impact of the accident. In the case of death or permanent disability, the insurer pays 100% sum insured. However, in the case of partial disablement, the insurer might make a staggering payout to help you deal with monthly household expenses.

What should you buy: Standalone or rider?

As opposed to a term insurance with personal accident rider, one should go for a separate personal accident insurance policy due to extra features which might not be offered by a rider. Most of the personal accident riders do not cover the loss of income and other features. Therefore, it is worthwhile to go for a standalone personal accident insurance policy to get the complete coverage.

Conclusion

A personal accident policy plugs a big hole in your insurance portfolio. However, it is important to understand the terms and conditions clearly before you buy the policy as some events like dental treatment, intentional self-injury or emotional disorder are not covered.

We all try to emulate our favorite stars and when the ‘Boss’ of Bollywood, Akshay Kumar says, “small or big, one needs to be extra vigilant as any stunt can be fatal,” we should pay attention to his words. As he said in an interview with the India Today, “We can’t take small stunts for granted because the biggest stunt doesn’t get you hurt. It’s the small stunt that can kill you.”

You cannot avert accidents, but you can curtail the impact of mishap. So buy a personal accident insurance policy now to get complete protection.