Understanding Accidental Insurance Plans

The accident insurance plans are policies that give a person financial assistance in the event of an accidental disability or accidental death. This type of policy covers accidents that are caused by violent, external and visible means which results in physical injury. It is important to note that accident insurance plans do not include illness or disease as well as nervous, emotional or mental disorders. The accidental insurance also dismisses self-injury, suicides, war and armed force operations etc. 

Listed below are some of the features of Accidental insurance:

• Just like medical insurance and term plan, accidental insurance is an annual contract that can be renewed every year.
• Depending on your income, few insurance companies give 60 to 100 times of your monthly income while others give 8 to 10 times of your annual income.
• Some insurance companies offer accidental insurance to dependents but have restriction in sum assured.

Benefits that a comprehensive accidental insurance policy offers:

This type of insurance is also referred to as accidental death insurance and thus, in case of death of an insured due to an accident, his/her nominees get 100% sum insured. 

In case a person meets with an accident and loses his body parts which may prevent him from working in future; then 100% sum insured is given to the insured person. The accidental insurance covers the following:

• Loss of one hand and foot or both hands or feet 
• Loss of a Limb along with an eye
• Total and permanent loss of both eyes’ vision 
• Total and permanent loss of hearing and speech

It is important to note that in case of permanent partial disablement i.e. loss of a finger or a toe, the amount that the insurance companies pay usually differs. So, it is important that you go through the policy documents thoroughly to understand what they will cover.

If the insured has met with a serious accident which has not resulted into any permanent loss but the doctor has recommended complete bed rest which can impact the earning potential for a small period, in such cases accidental insurance can compensate for this income loss. 

The accidental insurance can offer a few more benefits they can cover education fund for kids, emergency ambulance charges, family transportation, medical expenses, imported medicines etc.
These are some of the benefits that accidental insurance policies offer.
 

However, before you go ahead and invest in an accidental policy; it is important to note that premiums do not depend on the insured person’s age rather it depends on that person’s working conditions and work profile. Usually, there are three different levels on which the individuals are classified:

• Level 1: This includes people who work in offices and are in administration functions.
• Level 2: This includes people who work in various fields as labors.
• Level 3: This includes people who work in circus, mines and are considered as higher risk category.

If you work in a possibly risky occupation or engage in hazardous hobbies or sports then accidental insurance policy might be the best way to insure against a sudden accident.