A few facts on personal accident insurance policy

Insurance

oi-Sunil

By Sunil Fernandes

Updated: Wednesday, May 15, 2013, 12:18 [IST]

All general insurance companies (ICICI Lombard, HDFC Ergo, Royal Sundaram, Apollo Munich, Tata AIG etc.) offer accident insurance policies. The agents, however, don't try to pitch these policies much as these are quite low priced policies with lesser commissions.

Premiums

These policies cost you a low amount of premium for a decent cover. It costs you around INR 100 - INR 200 per lac of sum assured.

Coverage

The situations covered by personal accident policies are:

Death

In case of a death due to accident, the policy pays 100% of sum Assured to the nominee. Some companies also pay "Children's Education Bonus" of 5000 or 10000 for a maximum of two children.

Permanent Total Disablement (PTD)

In a situation when the insured is disabled for life, the entire sum assured is paid. Some policies also pay 125% or 110% of SA depending on terms and conditions of the policy.

PTD includes loss of -
both hands or both feet
one hand and one feet
one (hand or foot) and an eye
loss of sight of both eyes OR speech OR Hearing of both ears

Permanent Partial Disablement (PPD) - In this case, a small percentage of SA is paid on weekly or monthly basis, i.e. 1% of sum insured is paid every week up to 100 weeks.

Includes -
Loss of Index Finger or thumb
Loss of hearing in one ear
Loss of one eye
Loss of one limb

Temporary Total Disablement (TTD) - In case the insured is not able to work due to the accident, for some weeks or months, the company will pay a part of SA.

Group and family accident policies are also available in the market where cover is available for the whole family / group under a single policy.

About the Author:
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 [email protected].

Courtesy: www.investmentyogi.com