Why do you need a personal accident cover?

31 Jan,  2024
By: Eastern Fin Research Team
#Mutual Funds

Siddharth had everything going for him. A secure job, a new car and a house loan that was to be paid off in another 5 years. At 47, Siddharth was content in his family, consisting of his old father whose annuity paid for his medical bills, two children and a spouse who was a school teacher. But suddenly, disaster struck!

When Siddharth was returning home one night, a truck hit his car from the back. The accident left him crippled with a spine injury. He had insured his family against a mishap in the event of his death, with life insurance, but he was not able to claim it as he was alive, but crippled. The accidental cover bundled with his car insurance only took care of his hospitalization and surgery arising due to the accident.

Life is uncertain, and the nature of accidents is that they happen without forewarning. An accident could result in a permanent or partial loss of limbs or certain organs. A life insurance covers the insured only in the case of death. In all other cases resulting from an accident, life insurance alone is of not much use as the insured needs to take care of the medical bills along with living expenses while being partially or completely disabled. An accident cover insures the insured and his/her family, not only in the event of death but also for accidents. An accident insurance policy covers even minor injuries like a fractured arm.

Why should you invest in a personal accident policy?

The reasons you should consider for buying a personal insurance cover are:

1. Financial cover in case of disability: In case of permanent or partial disability following an accident, a personal accident cover, insures against such loss and offers peace of mind.

2. Home alteration and vehicle modifications benefit: Recovery post-accident and rejoining employment or even resuming normal day to day activities may need certain modifications in the life and way of living of the insured. For example, there may be the need to use a wheelchair that could necessitate the construction of ramps at home. An accident cover can help the insured claim this if it is included in the clause of the policy.

3. Hospitalization charges: Medical facilities are expensive and rising. A personal accident policy settles claims for all major hospitalization and medical bills as well as ambulance charges or even funeral charges in the event of demise of the insured.

What does a personal accident policy include?

1. Permanent total disablement benefit: This clause pays a certain percentage of the sum insured to the policyholder.

2. Permanent partial disablement: In the case of partial disablement, for example due to loss of limb or an eye or ear, a small percentage of the sum insured is paid on a weekly or monthly basis to the insured.

3. Temporary total disablement: The insured receives a percentage of the total sum insured on a weekly or monthly basis as per the policy term and conditions of the concerned company.

4. Educational grant: This clause in the personal accident policy covers the education of two children of the insured, till they attain age 23.

5. Accidental death benefit: In the unfortunate event of death, the entire sum insured is paid to the family.

6. Repatriation-transfer of mortal remains benefit: This benefit of the accident policy pays for the transportation of mortal remains of the policyholder from the place of accident to their home.

What are not covered in a Personal Accident policy?

There are a few things not covered by a Personal Accident policy. These are:

1. Preexisting disability or injury.


3. Suicide or self-injury.

4. Death or disablement due to childbirth or pregnancy.

5. Accident under the influence of intoxication or drug abuse.

6. Terrorism.

Talk to your Eastern Financiers Insurance Advisor, to plan for a Personal Accident Cover and buy peace of mind for yourself and financial security for your dependents.

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