Everyone knows they are going to die, but they’d like to believe they won’t ever get seriously ill or injured. Most people don’t accept that there are frequent stops on the way between health and death. It is difficult to talk about income replacement products like personal accident insurance.
What would happen if you took a 90-day vacation due to accident?
What if this vacation extends to 180 days or lifetime ?
If you were hurt tomorrow and couldn’t go to work, how long would your savings last?
Most people insure the egg and not the goose as they should, we have car insurance, home insurance, stocks insurance etc but very few have accidental Insurance. The biggest asset is your earning capacity and that must be protected. because if income stops, everything else will stop too.
Personal accident insurance pays fixed compensation for death or disablement resulting from accidental bodily injury
Personal accident policy covers:
If a person dies due to an accident the risk is covered under the personal accident policy. His legal heirs are entitled to get the sum insured.
Disability can be classified further as follows:
Permanent Total Disability(PTD)
Permanent Partial Disability(PPD)
Temporary Total Disability (TTD)
Permanent Total Disability:
As the name indicates the disablement is of permanent and irrecoverable nature and is absolutely total and the insured is unable to engage in the gainful employment. Under this disability the compensation is equal to the sum insured.
Example of PTD:
Loss of sight of both eyes
Loss by physical separation of two entire hands or entire feet
Loss of one hand and one foot
Person in comma for longer period will also be treated as PTD
Permanent Partial Disability:
The disability is not total but partial. e.g. Loss of toe or a finger. The compensation will be based on the percentage of the disability and it will defined in the policy and if it not defined then as per doctor certificate the compensation is paid.
Temporary total disablement:
As the name implies this is a disablement which is total but for a temporary period only. The temporary may be days, weeks, months or even years. The payment is on weekly basis.
Education amount for children:
Incase of death or permanent disablement of the insured person the insurance company also pays the education for two children if the age is below 25 years of those children.