Accidental Insurance Policy

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The accidental insurance policies provide a wide range of benefits such as coverage against death by accident or total and permanent and total disablement occurring due to such a situation.

These plans provide optional coverage facilities in case of expenses incurred due to accidental hospitalization. They also provide the insured daily expenses in such cases.

Yet another benefit of these programs is that they provide customized coverage whereby the insured can opt for an amount as per his or her convenience or requirement.

Types of Accidental Insurance

The accidental insurance policies can be broadly categorized into the following:

Individual Accidental Insurance

These policies can be availed by anyone and often benefit the children and partners of the insured as well. These policies have some restrictions when it comes to covering a certain kind of activities like various types of adventure sports and cover for both death and various forms of disability owing to an accident.

Group Accidental Insurance

The group accidental insurance policies are normally availed by employers to cover the accident related expenditure of their employees. A variant of these policies is the team accidental insurance policies that are used to cover sports teams.

Benefits of Accidental Insurance Policies

Nowadays there are several term plans that offer financial benefits in case of the death of the insured and the health plans always come in handy if the insured is hospitalized due to some reason. These plans also offer accident related benefits.

However, experts feel that the benefits available on these plans are not as good as independent accident insurance plans. They opine that since most of the insured are salaried persons traveling between locations to earn their livelihood or for other necessary purposes the chances of them facing an accident are greater than before.

According to them, the present situation necessitates that people place more importance on these policies than the life and health insurance policies. They also point out that these policies are pretty inexpensive as well.

Nowadays, on an average, accidental insurance cover of INR 10 lakhs can be availed by paying a premium of 800-1500 rupees a year. The premium normally varies depending on the benefits being provided in the plan as well as the company that is providing the same.

The accidental insurance policies also cover the non earning members or dependents of the insured. However, the payment provided for them is part of the insured sum.

Coverage details of Accidental Insurance Policies

In case the insured passes away due to an accident (death), an accidental insurance policy will pay the total sum assured to the nominee. There are a few insurers that provide special facilities such as education bonus for children. However, there is a specified number in these cases.

In case the insured is permanently disabled for life owing to an accident he or she receives the total sum assured. There are a few companies that make additional payment in such case that include the following situations:
  • Loss of both hands or feet
  • Loss of a limb and an eye
  • Loss of a hand or a feet
  • Loss of sight in both eyes or hearing in both the ears or the ability to speak

If the insured suffers permanent partial disablement then only a certain amount of the sum insured is paid to him or her and the payment is normally done on a monthly or weekly basis. The following situations are covered:

  • Loss of thumb or index finger
  • Loss of sight in one eye
  • Loss of hearing in one ear
  • Loss of one hand

In case the insured has been completely disabled for a certain period of time in the future and is not able to earn the companies pay a certain percentage of the sum insured. These situations are referred to as temporary permanent disablement and carry a cap as in a certain upper limit for payment. Following are certain situations that are considered in these cases:

  • Fractured limbs
  • Bed rest for an ensuing period of 3 months

Additional Benefits of Accidental Insurance Policies

Following are some of the extra features provided in these policies:

  • Some companies cover losses suffered due to terrorist acts
  • 15 days lookup period provided for free
  • Health checkups are not needed
  • Special benefits for claim free years
  • Coverage around the world
  • Family discounts
  • Coverage normally starts from INR 5 lakhs to 10 lakhs

Exclusions in Accidental Insurance Policies

The accidental insurance policies do not provide coverage in case of death or disability due to any of the following situations:

  • Intentional self injury, attempted suicide, or suicide
  • Pre-existing physical or mental condition
  • In a drugged or intoxicated state
  • Crew and pilots of aircraft, member of armed forces, or artists who take part in dangerous activities
  • Breaking law with a criminal purpose

How to buy Accidental Insurance?

Experts feel that in India insurance buyers like the concept of accidental insurance riders in other policies like the life or health plans. They normally suggest that such an idea is not a great one as the benefits are not as good as the standalone accidental plans.

There are some organizations that offer such facilities as part of mutual fund or credit card services. However, experts say that such services are a risky proposition because as soon as the mutual fund is discontinued or the credit card is surrendered the insurance facilities cease to function as well.

Accidental Insurance Policy Premiums

The premiums of these policies do not depend on the age of the insurer. The main factors in these policies are the type of job being done by the insurer and the overall working conditions. Following are some professions that are considered less risky:
  • Doctors
  • Bankers
  • Engineers
  • Accountants
Laborers are normally regarded as medium risk propositions. Some professions that are regarded as very risky may be mentioned below:

  • Underground workers in mines
  • Mountaineers, bungee jumpers, and rock climbers
  • Jockeys and people working in circuses

Top Accidental Insurance Policies

Following are some of the leading providers of accidental insurance policies and the facilities provided by the same:

ICICI Lombard

  • Coverage for permanent total disablement or death owing to an accident
  • Customized coverage and choice of sum insured ranging from INR 3 lakhs to 25 lakhs
  • Optional coverage facilities for daily allowance and overall expenses of hospitalization due to accident

Apollo Munich Health Insurance

Individual Personal Accident Plan

  • Lump sum payment in case of death from an accident
  • Weekly allowance for temporary total disablement
  • 50% of sum insured in case of permanent total disablement
  • Compensation of medical expenses in case of hospitalization due to accident
  • Educational bonus for a maximum of 2 children
  • Lump sum payment in case of bone fracture from accident
  • Repayment of hospital transfer expenses for an immediate family member in case of permanent total disablement or accidental death

Star Health Insurance

Accident Care

  • Coverage for accidental death or permanent or partial disability due to an accident
  • Travel costs of 1 relative covered
  • Weekly benefits for temporary total disability
  • Cumulative bonus
  • Educational grant for 2 children
  • Medical expenses covered upon payment of extra premium
  • Transportation expenses coverage

Reliance General Insurance

Reliance Individual Personal Accident Insurance Policy

  • Quick provision of policy in case of online applications
  • Convenient and simple claims procedures
  • Less paper work and substantial coverage
  • Compensation provided to family in case of disablement or death of policyholder
  • Choice of features


Personal Accident Insurance

  • The maximum age for entry is 65 years
  • Sum insured range - INR 2.5 lakh to INR 15 lakh
  • Coverage for family as well
  • Worldwide coverage
The plan also covers the following situations resulting from an accident:

  • Burns
  • Ambulance expenses
  • Broken bones
  • Daily cash payments for hospitalization in case of sickness and accidents
  • Death or permanent disability due to accident

Oriental Insurance

Personal Accident Insurance
  • Covers rail, air, and road accidents
  • Covers snake bite, dog bite, or frost bite
  • Covers injuries owing to fall or collision
  • Covers burn injury, poisoning, and drowning
  • Covers injuries owing to gas cylinder explosion or bursts
  • Available for people between 5 and 70 years
  • Family cover provided
  • Cumulative bonus provided.
Last Updated on 09/04/2011

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