Personal Accident Insurance is seldom purchased. Lack of knowledge and utility are the primary reasons why people do not purchase it. Sharing my reasons, I purchased one for myself.

In my opinion, it is a necessary addition to every insurance portfolio, as it bridges the gap between term life insurance and health insurance. A few months back, I had an accident. I was on my way to a client meeting, and it was peak office hours traffic. The seat belt saved my life, and I had no injuries, but my car took a serious hit in the back. The Wagon R’s driver which hit my car from behind was likewise lucky enough to escape uninjured.

The accident could have been serious, with broken bones, injuries, and subsequent loss of income. My good fortune. Nothing of this sort happened. I had car insurance which took care of the damage and repair. This is where personal accident insurance comes into the picture.

Post the accident, reflecting on the accident and playing the worst-case scenarios in my head, Personal accident insurance came into my mind. I had, for the first time, heard about it during my B School internship program while doing a project with ICICI Lombard General Insurance.

Accidents can occasionally have deadly, temporary, and permanent consequences. In addition to physical injury, it may have serious effects on your financial and mental health. Accident-related injuries might hinder a person’s capacity to work and make a living for a temporary time period. Personal accident insurance can cover you and your family in such a situation.

Personal accident insurance provides you and your family with financial support in the case of an accident that results in death, physical injury, or temporary or permanent total/partial disability. If the accident causes the policyholder’s death, the nominee will receive full compensation (equivalent to the sum insured).

In addition, depending on the insurer and policy you select, the owner of a personal accident insurance coverage may get a number of additional benefits.

  1. Hospitalization,pre, and post-hospitalizationcoverage
  2. Daily cash allowance of up to 30 days
  3. Coverage for the loss of income for a certain period of time
  4. Education benefits for your dependent children up to a certain age.

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