PERSONAL ACCIDENT INSURANCE PLANS

  

Accidents can occur any time to any person and can result in various implications causing death or disablement of the concerned. In all the scenario it affects an individual’s financial position. In the case of death the income of the affected family stops and in case of disablement the same also happens. Although none can prevent accidents or accidental injuries but we can have some financial plan in place by purchasing accidental insurance policy so that in case of any untoward incident one can have financial plan and backup in place. Let’s understand what all is covered in accidental insurance policies .

 What is covered : -

 Physical loss to an individual due to an accidental injury ( including fatal)

 Who can be insured

 Any individual or group of individuals ( through employer association and institution and thorough group policy etc) aged between 12 and 70. Subject to medical examination at 70 years a person can be covered up to 80. 

 What will policy pay and the quantum of payment

 When an accidental injury happens the sole and direct cause results ( during the period of insurance) in:

 

Death	100 % of Sum Insured
Permanent Total Disablement	100 % of Sum Insured
Loss of two limbs/ Two eyes or one limb and one eye	100 % of Sum Insured
Loss of one limb or one eye	50 % of Sum Insured
Permanent Partial Disablement	Varying % of Sum Insured as per policy
Temporary Total Disablement	1 % of Capital Sum Insured per week Subject to a maximum of Rs 3000 per week for a maximum period of 100 weeks

 On payment of extra premium medical expenses incurred up to 25 % of claim or 10 % of Sum Insured can be covered.

 Policy also pays for education fund for dependant children (2) of deceased insured and expenses of carriage of dead body of insured from accident site ( as per details in policy)

 Attractive cumulative bonus at the time of renewal by way of increasing the Sum Insured by 5 % for each completed claim free year of insurance ( maximum of 50 % sum assured ) without collecting extra premium as per policy.

 Disclaimer : - These benefits mentioned above may vary from company to company. You are supposed to get analyzed at your own with the company while purchasing personal accident insurance policy.

 Now let’s understand few terms used above :-

 Permanent Total Disability (PTD) : -

 Permanent total disability is the situation when due to a serious injury , a person is unable to work in their own or any other occupation for which they are involved. This is a condition when an individual is no longer able to work due to various injuries. Permanent Total Disability is a situation when an individual may never able to work again during it’s life span.

 Permanent total disability may involve an individual’s loss of limbs. An individual can get himself insured against PTD through personal accident insurance policy. The amount of benefit is a fixed percentage of policy holders average earnings or can vary company to company and policy to policy.

 Permanent Partial Disability (PPD) : -

 Permanent partial disability is a situation when an employee or a wage earner is permanently not able to work at full physical capacity due to injury occurred due to accident. A benefit is paid in such situation due to complete or partial loss of body. Loss of use means when an employee or a wage earner is not able to use the specific body part which he or she was using before accidental injuries. Few examples of permanent partial disability are :

. hearing loss

. loss of vision in one eye

. knee injury

. removal of a body part like a finger or a hand or a foot.

. damage in nervous system.

 Temporary Total Disability (TTD) : -

 Temporary total disability benefits are given to those employees or wage earner who are not able to work for a period of time due to accidental injuries. These benefits are stopped when the temporary disability is cleared and the person starts working again. Temporary total disability is a injury which does not result in death or permanent total disability but the injured person is not able to perform his or her regular duties or the given job. Benefits are paid to the affected person till the time he or she return to work and resume the duty or job.

 

 Dr SANJAY MITTAL

B.Com,  MBA (Finance)

CAIIB,  PGDCA

PG Wealth Management

Senior Banker and Financial Analyst

9592800921

Shsanjay.mittal@gmail.com