Imagine a situation, you are hit by a motor vehicle and are permanently disabled? There would be no monthly or annual earnings but bank EMIs, medical expenses, and other expenditure. To deal with such an emergency situation, it is advisable to get a personal accident cover. Here’s a quick rundown of some of the major advantages of buying a personal accident insurance policy:
- Family security
- No requirement of medical tests and documentation
- Substantial coverage at a lower premium
- Worldwide coverage
- Both individual and family plans are available
- The easy and certified claim process
- 24×7 support service
- Legal and funeral expenses are covered
- Child education benefit
- Double indemnity for demise/ impairment while traveling in public transport
- Availability of customisable plans
Additional Benefits of Personal Accident Insurance Policy
In addition to the four primary benefits, there are various other benefits that come with a personal accident insurance policy. Some insurers may provide these benefits in the basic plan or you can buy them as an add-on cover by paying an extra premium:
Hospital Daily Cash: Daily cash allowance is paid to the insured in case of an accidental hospitalization. Coverage is limited to a certain number of days (as specified in the policy terms and conditions).
Ambulance Expenses: Compensation is provided for ambulance charges to carry the insured post-accident to the hospital.
Transportation or Repatriation of Mortal Remains: In case of accidental death of the policyholder, the nominee would receive the expense incurred on repatriation and transportation of the mortal remains from the site of the accident to the hospital, home or the cremation ground. Compensation is also provided for the expenses incurred on the religious ceremonies related to cremation.
Broken Bones: In case of fractured bones or any bone damage, a fixed compensation is payable under the policy.
Burns: Compensation is also provided for accidental burns.
Family Transportation Allowance: It is applicable when the hospital is too from the insured’s residence. In such instances, the actual transportation expenditure incurred by the immediate family members, to reach the insured person is also compensated. The total reimbursement payable is subjected to the amount specified in the policy.
Education Advantage: In case of an unexpected demise of the policyholder, the cost of education of the dependent child is covered up to a specified limit.
Loan Protector: In the event of unexpected demise or lifelong disabilities, a lump sum amount (specified in the policy schedule) is paid.
Adaptation Allowance (also known as Home Alteration and Vehicle Modification Benefit): Some insurers may offer this benefit. In case of permanent total disabilities or dismemberment due to an unfortunate event, money has to be spent to modify one’s house and/or vehicle is also covered.
Tax Benefits under a Personal Accident Policy
Section 80D of the Income Tax Act 1961 does not provide any tax benefit for the premium paid for personal accident insurance plans that offer protection against any physical disability, dismemberment or accidental demise. However, it is important to understand that the primary reason for buying any kind of insurance is protection and safety. Insurance decisions should never be driven by tax considerations.