Accidents and tragedies can occur anytime in anyone’s life. The recent death of former chairman of Tata Sons Cyrus Mistry in a car crash on NH 48 on September 4 stands testimony to this.
While one can not avert the inevitable, but what one can surely control is the financial impact of these untoward incidents.
This brings to question the need to buy an accident insurance policy so that its sum assured is not only adequate but coverage comprehensive as well. While the regular personal accident insurance policies cover death, disability (partial and full); some also cover transportation benefits when the insured person is in a hospital outside 150 kms of their home
Add-on for a small trip
There are some insurance policies that offer short-term policies such as for a trip, but experts advise that they should be taken through a service provider such as a taxi service.
“There are top-up plans that cover shorter time periods and events but these are best bought through a service provider. For example, some app-based taxi services will issue personal cover for specific trips,” says Kapil Mehta, Co-Founder of Securenow.in.
Although accidents tend to cover death cases, but a good insurance policy has to cover partial and total disability.
“A good personal accident plan will cover death in an accident, total disability and also partial disability. Look for this. Also, do ensure that the accidents are not restricted to the workplace but global in nature,” added Mr Mehta.
Injuries to the ambulance cost
Experts assert that policyholders must ensure that their personal accident insurance policy covers physical injuries, permanent disability or accidental death in the event of an accident.
"Before buying a personal accident insurance policy, a customer should take care of a number of factors which include: the coverages provided, whether the policy covers only death or disabilities and hospitalisation expenses. The policy holder should also evaluate the scope of policy's coverage to ensure that the coverage extends for accidents globally, and offers protection to the family on a floater basis," says Animesh Das, Senior Director, Motor Underwriting at ACKO.
“A personal accident cover is mandatory by law for all vehicle owners (either two-wheeler or four-wheelers). This proves to be of significant importance to immune yourself and your family from any financial crisis in case of an accident. Personal accident cover provides compensation in case the policyholder suffers physical injuries, permanent disability or accidental death in the event of an accident,” says Ashwini Dubey, Head, Motor Insurance Renewals, Policybazaar.com.
He also adds that one can consider buying either a comprehensive policy as a rider to cover your family, ambulance costs and hospitalisation costs.
“Since it’s a compulsory requirement, you can choose to purchase it as a comprehensive policy or as a rider in your life insurance policy. You can consider buying a plan that covers your family (up to three co-passengers) seated in your car at the time of the accident," adds Dubey.
One more thing to consider while buying a personal accident cover is that it should cover your ambulance costs and hospitalisation expenses as well. You must understand your risk profile especially if you are a frequent traveller and include add-ons that are highly required and affordable,” adds Mr Dubey from Policybazaar.com.