There are many things that you cannot control and accident is one of them. These events are not only unfortunate but also uncertain which means you cannot take any precautionary measures against them. Many a time safety features don’t work as they should be and have us vulnerable to life-threatening risks. There is no way we can steer clear of mishaps , however, we can definitely shield ourselves from expenses resulting out of an accident by opting for a personal accident policy.
Personal Accident Insurance:
Personal accident insurance plans recompense insured people in the event of death, partial or total dismemberment or disability, physical injuries as a result of accidents brought about by external and visible means.
A personal accident policy differs from a term plan in many aspects. While a life insurance policy provides policyholders with 20 times of their monthly income as a norm, compensations offered by an accident insurance usually depend on insurers and more significantly on the type of occupation of the policyholders. If you are engaged in a risky profession you are more likely to come across accidents. Hence, insurers will treat your proposal differently than they handle the proposal of the people associated with less risky occupations. As the chance of meeting an accident increases the premium rate of an accident policy rises and sum insured amount decreases. Usually, professions of policy holders are classified in three different categories in order to determine the premium rate.
Tier- 1
This category belongs to those who are involved in risk-free occupations like accountants, lawyers, doctors, teachers or IT professionals and the likes.
Tier-2
The second category is for people associated with the medium risk level profession. These jobs include, builder, garage mechanic, contractor, machine operator, veterinary doctor, paid drivers etc.
Tier - 3
People engaged in extremely risky professions fall under this category. Mountaineers, professionals working in circus, mines and Workers in underground mines, high tension electric installations etc.
What kinds of accidents are covered under a personal accident Insurance?
The following type of mishaps come under the purview of an accident policy;
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Road, Rail, Air accident
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Physical injury due to any fall or collision
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Poisoning, , drowning, injuries due to burning
Best features of personal accident insurance policy
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Prospective policy buyers don’t have to undergo medical tests to avail a policy
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The policy is valid in India and in abroad
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Many insurers offer a period of free-look for 15 days
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Wide range of coverage available
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Bonuses available for claim free years
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Some insurers also cover terrorism acts under their accidental plans
Benefits of availing a personal accident insurance plan
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The compensation amount is 100% of capital sum Insured in the event of death of policyholders.
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If the insured person suffers from permanent and total disablement such as paralysis, he or she is entitled to receive 100% of capital sum insured.
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If the insured person loses two Limbs or both eyes, he or she is also eligible for 100% of capital sum insured.
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In case the policyholder loses one eye or one limb the insured person can rightfully claim 50% of capital sum insured.
What are the exclusions in a personal accident insurance plan?
This type of policy doesn’t cover natural death, disablement or injury that arise from;
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Self-inflicted injuries, attempt to suicide and suicide
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The effect of intoxicating drugs or liquor
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Insanity and venereal disease
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Invasion, war, enemy activities and hostilities
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Pregnancy or childbirth
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Arrests, capture, restraints and all types of detainment
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If the policyholder has criminal intention and violate the law
Compare and select the best insurance policy
Now that you are aware of all the nitty-gritties of a personal accident policy, you would definitely look for such a policy that meets your budget and comes with maximum coverage and other beneficial features. This blog aims at helping you find the lowest policy quotes from leading insurance houses so that you can compare them and unearth the best coverage at the best price.
The table below consists of comparison of some personal accident insurance plans available in India. The comparison is relevant for Tier 1 professional.
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Insurer > |
Appollo Munich -Individual Personal Accident - Standard |
Reliance General Insurance - Personal Accident |
IFFKO-Tokio Individual Personal Accident |
Oriental Insurance - Personal Accident Individual |
Appollo Munich - Individual Personal Accident - Premium |
Cholamandalam - Accident Protection Plan |
L & T Insurance - Personal Accident |
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|
Premium for SI Rs. 10 Lakh |
Rs. 1254 |
Rs. 1426 |
Rs. 1654 |
Rs. 1710 |
Rs. 1818 |
Rs. 2017 |
Rs. 2280 |
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|
Min. and Max. entry age |
91 days to 69 years |
5 to 70 years of age |
5 to70 years |
5 to70 years |
91 days to 69 years |
18-69 years |
5 years to 70 years |
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|
Accidental death (AD)benefit |
Rs. 10 Lakh |
Rs. 10 Lakh |
Rs. 10 Lakh |
Rs. 10 Lakh |
Rs. 10 Lakh |
Rs. 10 Lakh |
Rs. 10 Lakh |
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Permanent total disability (PTD) |
AD Sum Insured |
100% |
100% |
50% |
AD Sum Insured |
100% |
100% of sum insured |
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Permanent partial disability (PPD) |
AD Sum Insured |
From 1% to 75% as per policy conditions |
50% |
50% |
AD Sum Insured |
2% to 50% of sum insured |
varies from 1% to 50% of sum insured |
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Temporary total disability (TTD) |
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Yes, upto 100 weeks @1% (Maximum Rs. 6000) per week |
1% of C.S.I or Rs.25,000 whichever is lower |
@ 1% of sum insured per week subject to a maximum of 104 weeks upto Rs. 5000. |
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1% of sum insured subject to maximum of Rs 10000 for maximum 100 weeks |
1% of sum insured per week subject to maximum of Rs 6000 per week upto 100 weeks |
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Cumulative Bonus |
NA |
5% increase in CSI (in case of Death or PTD) for each completed claim free year,subject to a maximum of 50% |
5% increase in CSI subject to a maximum of 50%
|
5% increase in CSI subject to a maximum of 50%
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5% for every claim-free year up to maximum of 50 per cent of basic sum insured. |
NA |
5% for every claim-free year up to maximum of 50 per cent of basic sum insured. |
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Children education bonus |
50% of sum insured per dependent child (up to maximum of two children) |
10% of capital sum insured upto Rs 5000 per child for maximum two children upon death of insured member |
For one child upto the age of 23 yrs.-10% of C.S.I Subject to a maximum of Rs.5000.For more than one child upto the age of 23yrs.-10% of C.S.I Subject to a maximum of Rs.10000. |
10% of the CSI maximum of Rs. 5,000/ for one child and 10% of CSI maximum of Rs. 10,000/ for more than one child below 23 years |
10 % of AD Sum Insured; max Rs. 20,000 (allowed upto 2 children) |
NA |
10% of the CSI maximum of Rs. 12,500 for one child and 10% of CSI maximum of Rs. 25,000for more than one child below 23 years |
Source: GIBL.IN and insurance companies’ websites Final verdict
When you go through the details of al the personal accident covers you will find out that no policy is perfect in terms of all parameters. This table is crafted by collecting data from insurance companies’ websites and GIBL, one of India’s ruling insurance comparison portals.
If you go through all the plans along with their offerings, It is quite evident that the premium accidental plan provided by Appollo Munich is the standout one in all aspects. Although, the premium amount is a bit higher than most other plans, but the policy is unparalleled to other plans in terms of its coverage in case of PTD and PPD and TTD.
These are my findings when it comes to availing the best personal accident plan in India. Feel free to make comments and let me know what’s your take on these outcomes.
