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PERSONAL ACCIDENT INSURANCE





Under Personal Accident Insurance policy, compensation is paid by insurance companies in case insured is met with an accident. The compensation paid by Insurance Company depends on the sum assured chosen by the insured.

WHAT ARE THE FEATURES OF TAKING PERSONAL ACCIDENT INSURANCE?

  • Insured will be covered for accident that happens anywhere in the world, irrespective of the geography
  • Lump sum amount is paid to the insured in case following scenarios arise out of accident:
  • Accidental Death-In case the insured dies after accident
  • Permanent total Disability-In case of loss of two limbs or organs like both eyes, both hands, both legs after accident
  • Permanent Partial Disability-In case when a part of your body is injured or lost due to accident
  • Ambulance Care- Emergency Ambulance service up to INR 2000 is given by Insurance company
  • Education Fund- If the Children of the insured are financially dependent on him and the accidental death/Permanent total disability claim is accepted by the Insurance Company; then the Insurance Company will pay 50% of Sum insured per dependent children (maximum up to 2 children).
  • Temporary total disablement- Weekly allowance will be given by the insurance company to insured for the loss of income(as per ITR) occurred due to an accident.
  • Purchase of blood- If the person suffers from Accidental death, permanent total disablement, permanent partial disablement and the claim get approved then cost incurred for buying blood from blood bank will also be covered
  • In-patient treatment- If insured has to be hospitalised due to accident then the cost of hospitalisation will be covered by insurance company

HOW PERSONAL ACCIDENT POLICY IS DIFFERENT FROM TRADITIONAL POLICY?

POINT OF DIFFERENCE PERSONAL ACCIDENT POLICY NORMAL HEATH INSURANCE
MEDICAL CHECK-UP No health check-up is required Compulsory after 45years
PREMIUM Relatively Low Relatively High
CO-PAYMENT OPTION AVAILABLE Few companies have this option No
COVERAGE Covers Personal accident as well as the after effects of accident i.e. Death, Permanent total disability etc. Covers hospitalisation cost only

WHAT IS THE ELIGIBILITY CRITERION FOR PERSONAL ACCIDENT?

  • Entry age to take personal accident cover is 91 days-69 years
  • Sum assured chosen by the insured could be up to the maximum amount of sum insured provided by the company
  • But, If the age of insured on renewal of the policy is 70 then the maximum sum assured is of Rs5Lac
  • Personal accident policy is a yearly policy and the premium paid is annual
  • Personal Accident policy can be taken as an individual cover or as a Family floater cover; including spouse, Dependent children and/or dependent parents


  • Premium amount also depends on the nature of occupation of the insured. Thus, if insured changes his occupation then he needs to inform the Insurance Company within 30 days of such change. Insurance company will consider the same and take the decision accordingly

WHAT IS THE TAX BENEFIT OF TAKING MEDICAL INSURANCE?

The tax benefit is provided under Section 80(d). Limit for tax benefit is as follows:

The tax benefit is provided under Section 80(d). Limit for tax benefit is as follows:

  • If individual takes Cancer insurance policy for self then the amount paid as premium will be treated as saving up to INR 25000, but if you are a senior citizen then the rebate is INR 30000
  • Also, if you take this policy for your parents then you can take rebate of INR 25000. However, if your parents are senior citizen then limit of the rebate is INR 30000 separately

However, if the policy is taken for yourself and your parents who are senior citizens then total maximum rebate available under this section is INR 55000.

WHAT ARE THE EXCLUSIONS OF PERSONAL ACCIDENT INSURANCE?

  • Hernia
  • Any fracture caused due to osteoporosis
  • Hairline fracture
  • Pre-existing diseases
  • Injuries caused by self, such as suicide attempts etc.
  • Pregnancy or childbirth or its complications, congenital internal & external diseases
  • HIV/AIDS, sexually transmitted diseases

LIST OF SOME COMPANIES THAT PROVIDE PERSONAL ACCIDENT POLICY-

  • Apollo Munich Health insurance
  • Bajaj Allianz
  • ICICI
  • National
  • New India
  • SBI
  • Star Health insurance
  • United India
  • Tata AIG
  • Max Bupa health Insurance

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