Personal Accident Insurance – Should you opt for it?

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Personal Accident Insurance – Should you opt for it?
"Risk comes from not knowing what you're doing" - Warren Buffett

True......but not always.
In our lives, there are thousands of situations, where we know what we are doing, however we cannot avoid risks. Imagine someone crossing the road on a pedestrian signal, and a drunkard hits him. The pedestrian could not avoid the risk despite following the traffic rules.

Risk is inherent in all our activities. In our last interaction, we had discussed how you could select a life insurance policy to cover the risk of death and a mediclaim policy as a safeguard against hospitalisation expenses.  However, most of you must be familiar with these risk covers; but very few would have heard about personal accident insurance cover. Let us discuss this today!

Personal Accident Insurance denotes an insurance cover, which proposes compensation in case of death, bodily injuries, total/ partial disability or mutilation resulting from an accident. The types of events that are covered under personal accident insurance are rail, road and air accident, injury due to collision or fall, burn injury etc.

Your insurance portfolio would be incomplete without a personal accident policy. This type of policy provides financial support to the policyholder if he is disabled after an accident. Even minor accidents are covered by the policy such as breaking a leg or arm, falling from a cycle etc.

So, one should use the option and take an accident insurance policy.

Sapna Tiwari is a Certified Financial Planner and Masters in Financial Management with over half a decade's experience in the field of personal finance. The views expressed are personal. She can be reached at

Courtesy: www.investmentyogi

Story first published: Saturday, May 4, 2013, 11:11 [IST]
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