The word ‘accident’ means the occurrence of any unforeseen or unexpected event. An Accident Insurance provides compensation to the insured if he becomes a victim of any accident caused by another. An accident may results in disablement or death, of permanent or temporary nature. The accident insurance policies cover a number of contingencies like including murder, hit-and-run, accidents plane crashes, train, and even death from snakebites also.
Personal accident policies provide 3 types of accidental benefits.
(i) Death Benefit
(ii) Permanent Total Disablement Benefit
(iii) Partial Disablement Benefit.
In the first case total sum insured is paid as compensation.
In the second when a person becomes permanently disabled by loss of both feet of both hands or both eyes, etc, also gets 100% of the sum assured.
The third a lump sum benefit and/or weekly compensation for temporary disablement for a maximum total period of 104 weeks @ 1 per cent of the insured sum or Rs 5,000, whichever is lower is paid.
In addition, the insurance companies also provide additional benefits such as ambulance charges incurred, financial assistance, children’s education, bonus, etc.
Accident Insurance Policy Plans in India
There are many private players that offer policy on Personal Insurance Accident like Bajaj Allianz General Insurance, Iffco Tokio, Royal Sundaram, General Insurance, ICICI Lombard and Apollo Munich Health Insurance.
Besides, the 4 general public sector insurance companies – New India Assurance, National Insurance, United India Insurance and Oriental Insurance also offer similar accident insurances.
The policy offered by the four general insurance companies are almost same.
Eligible or qualifying age for ‘Accident Policy’ holder is between the 5 and 70 years
However, Royal Sundaram policies available for the age band between 5 to 70 years; the proposer’s minimum and maximum age must be between 18 and 70 years. Bajaj Allianz, the accident insurance policy is offered to individuals of age between 18 & 65 years.
All accident insurance policies are annual policy and to be renewed yearly. If other insurance products are compared, accident insurance policies are economical, with high benefits. For instance, in a policy from any of the public sector insurance company, one needs to pay a premium between Re 1 and Rs 1.50 per Rs 1,000 of sum assured only. Therefore, the premium for a policy of Rs 200,000, one needs to pay a sum between Rs 200 and Rs 300 (of course the benefits attached is also to be considered). Similarly, a similar policy of Rs 200000 from Iffco Tokio, the premium is Rs 294.
No company fixes the assured sum before. It is calculated on the income and ability to pay premium.
Bajaj Allianz limits the amount of sum assured upto 70 times of the insured’s average monthly earnings. Alternatively, Iffco Tokio and ICICI Lombard restrict it to Rs 600,000 and Rs 500,000 respectively.
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