Why is it important to read the document of accidental insurance carefully?

Vimal Joshi
Updated: 13 Dec 2021, 12:03 PM IST

Reading the accidental insurance policy document is just as important as purchasing the right policy plan. We decode the significance of reading policy documents for you

Personal accident insurance offers comprehensive financial protection to cover individuals against unforeseen events

Personal accident insurance offers comprehensive financial protection to cover individuals against unforeseen events

Unfortunate circumstances such as accidents come without a warning. They can happen anywhere, anytime and can cause mild to severe injuries. If someone gets hit by a car and gets paralysed in its aftermath, there would then be no monthly income for him, but only bank EMIs to pay, medical bills to clear, and other expenses to meet.

This is the reason one must get accident insurance cover so that one can deal with such an emergency. Personal accident insurance offers comprehensive financial protection to cover individuals against unforeseen events such as accidental death, physical injury, partial or total disability, permanent and temporary disabilities, and death as a consequence of an accident.

One of the most significant advantages of accidental insurance is its low cost. An insurance with an amount insured up to Rs. 15 lakhs may be obtained for a premium of less than Rs. 1,500. This is excellent given the level of coverage provided by these policies.

But, as is the norm of life - every good thing is complemented with some cons as well. Same is the case with accidental insurance.

Recently, the social media was abuzz with a sordid tale of an insured victim whose claim was rejected because of the size of the engine. The insured got a motor insurance cover, following which, he met with an accident that led to his death. At the time of the accident, he was riding a 346 cc bike.

Since the policy covered vehicles only upto 150 cc engines, the claim was therefore rejected.

This case created a stir of sorts on social media, but the company later clarified its position and stated that this incident is old one, and the claim has already been paid to the victim’s kin. The corporation emphasises that in October 2020, the specific exclusion that existed in all of their previous goods was eliminated. They also informed existing and potential clients that their personal accident insurance covers all bikes, regardless of engine capacity (CC).

Furthermore, the insurance firm asserts that it has maintained the highest claim settlement ratio in comparison to its peers by settling the largest number of claims. The firm also stated that it will continue to endeavour to uphold this standard and develop to meet changing customer requirements and economic conditions.

In the backdrop of this case, the customers are advised to thoroughly check the policy's claim and they may even return the policy if they are unsure of its usefulness. All of the product offerings and the clauses stated in the policy are listed on their website, and they are also accessible online via other digital channels.

“As a matter of fact, health and personal accidental policies offer a 15-day free look-in period so that buyers can review all the information and if they aren’t satisfied, they can cancel the policy and claim a refund,” an insurance company representative said.

It is vital to understand your policy's exclusions as it is to appreciate its advantages. Exclusion refers to any risk that is not covered by your insurance policy. These exclusions must be paid for in full by you and are not reimbursed by your insurance carrier.

One should be careful of the provisions not covered in the insurance

As a result, when purchasing an insurance policy, you should be completely informed of what it contains and excludes since these exclusions limit your coverage scope and vary depending on the type of insurance you purchase.

The terms and conditions of an insurance policy lists all the exclusions as well. What most people don't realise is that reading the term insurance policy document is just as crucial as shortlisting the proper plan.

People frequently ignore the tiny print of rules, losing out on the exclusions and limitations, leading to a negative impact in the most needed circumstances. Hence, one should always read the policy paperwork and do an insurance policy review to see whether it meets one’s demands.

First Published: 13 Dec 2021, 12:03 PM IST
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