What is a Personal Accident Insurance Plan?
As the name suggests, a personal accident insurance plan provides coverage to the insured against death, temporary or permanent partial/total disability resulting from an accident. Under this plan, monetary compensation is paid in case of bodily injuries, death, or disability caused due to an accident. It is a contractual agreement between the insurer and policyholder in which the former agrees to pay monetary compensation to the later on the occurrence of his death or disability caused due to an accident, as applicable under the policy terms.
What kinds of Personal Accident Insurance plans can I opt from?
Listed below are the types of personal accident insurance plans.
Individual Personal Accident Plan
This insurance policy covers an individual against accidental death, permanent total/partial disability, and total temporary disability caused due to an accident.
Family Personal Accident Plan
This insurance policy ensures a personal accident cover for your entire family. Under this policy, individuals, spouses, children, and parents can avail the cover as specified in the policy.
Group Personal Accident Plan
This insurance policy is provided by the employer to his employees and the benefits can be availed by the employee’s families against accidental death or disability as per the policy conditions.
What are the Benefits of Buying a Personal Accident Insurance Plan?
Following are the benefits or policy coverage of buying a personal accident insurance plan.
Covers Accidental Death
In the event of death due to an accident, the nominee/ beneficiary of the policyholder is entitled to receive 100% sum assured as applicable under the plan.
Covers Accidental Disabilities
The personal accident insurance plan covers varying kinds of disabilities as per the policy conditions.
- Permanent Total Disability (PTD): It refers to a situation when the insured has become completely disabled due to accidental bodily injury that leads to the loss of his/her earning capacity. In the case of PTD, the insurer pays the entire sum assured to the policyholder as applicable.
- Permanent Partial Disability (PPD): It refers to a situation when the insured has become partially disabled due to accidental bodily injury. In the case of PPD, the insurer pays a percentage of the sum assured is paid as a lump sum or periodic payment for a specified period of time, as applicable under the plan. The payout percentage may differ from one insurer to the other.
- Temporary Total Disability (TTD): It refers to a situation when the insured has become totally disabled and loses his earning capacity for some period of time (for months or weeks). In the case of TTD, the insurer pays a part of the sum assured as specified under the policy.
- Temporary Partial Disability (TPD): It refers to a situation when the insured has become temporarily disabled to perform his duties, but it is assumed that he can recover totally. Under this scenario, the insured is able to work, but in a limited capacity. Some insurers also cover this kind of disability when it happens due to an accident.