What’s personal accident cover?

Samskrita Jain March 12, 2016June 12, 2020

Accidents are hard on families. It is not just about the pain and loss of the person. It upset their lives for a long time in a financial sense also. The financial turmoil makes it very important to cover this risk to let the family continue a normal life. How does one do that? Well, by getting a personal accident insurance. A personal accident (PA) cover is an insurance that ensures a fixed payout to the family or you in case of unfortunate events of death and disability.

There are different events categorized by severity when you or your family get the compensation. It is very important that you pay attention as to what exactly is defined as what.

Death- The compensation for death is equal to the total cover amount of your policy. It can be an instant death or death within a given period of time after accident. 12 months, for example, applicable as specified in the policy.

Permanent total disability- It is defined as the condition in which you’ve lost the ability to work because of the loss of essential body parts and organs. Blindness, loss of both limbs etc. are such conditions. Here it is interesting to note that loss of one limb is permanent but is not total disability. Again, the compensation here is a fixed, one time payout decided by policy terms. It can be up to the cover amount or a specified percentage of the cover amount.

Permanent partial disability- Partial disabilities, too, are covered with compensation up to 50% of the cover amount. Loss of one limb, one eye etc. are covered under this benefit.

Temporary partial disability- In case of temporary disabilities, the policy pays you a specified amount. The insurer may also ask you to submit a medical proof that you can’t attend work.

Cost is as low as your last meal!
The premium for personal accident cover depends on the cover amount and the events covered. By and large, in a few hundred rupees you can get a coverage of up to 10 lakhs for all the events described above. As the extent of coverage increases, it adds up to the premium.