A personal accident (PA) insurance cover is designed to protect oneself from various types of accidents. One can take a personal accident cover at a very nominal cost, which primarily covers accidental death, ensuring a lump sum payout in case of death arising out of accidental bodily injury. It ensures that accidental hospitalisation expenses or loss of income due to various forms of temporary or permanent disabilities, including partial or complete incapacitation, are also covered. It also specifically covers accidental disabilities such as the loss of limbs, eyesight, or speech and pays out claims as per the policy terms. A personal accident cover aims to pay compensation to the insured in case of an accident while travelling by rail, air, road or drowning or accidental falls, etc.
However, what many people don't realise is that personal accident coverage can come from various sources, some of which you might not even be aware of. According to Vivek Chaturvedi, CMO and Head of Direct Sales, Digit Insurance, it's vital to ascertain if personal accident coverage is given to you when availing different services.
"In the unfortunate event of an accident, you can claim from all applicable personal accident policies you might have. For instance, if you hold two personal accident policies, one for Rs 10 lakh and another for Rs 20 lakh, you or your nominee (in case of death) could make claims from both and receive a total of Rs 30 lakh," Chaturvedi said.
Let’s take a look at common scenarios where a personal accident cover may be offered:
Bank-Provided PA Cover
Banks sometimes provide personal accident cover free of charge with your savings or salary account. It is even offered when you opt for certain types of credit cards from the bank. Even when you take out a loan, banks typically bundle or provide an option to take a PA cover to minimise their risk in case you get into an accident and are unable to repay your EMIs or loan amount.
Employer-Provided PA Cover
Also known as Group Personal Accident (GPA) cover, this is an employer-employee contract where the employer pays a lump sum amount in the event an employee meets with an accident. "The premiums are typically paid by the employer, and this type of policy covers the employee and their dependents in cases of accidents, disability, or death. Many insurance companies that offer a group medical cover (GMC) also have an inbuilt or optional personal accident cover," he said.
Inbuilt PA Cover under different insurance products: A personal accident cover can be provided as an inbuilt section under different insurance products. For example, having a personal accident cover for an owner-driver under motor product is compulsory. Similarly, personal accident cover is also often offered as an add-on or inbuilt section under a health insurance policy or under a home insurance policy.
Group Plans: Beyond typical sources like employers or banks, personal accident cover is also available through membership groups such as employee associations and alumni networks or various guilds or federations you might be part of. These organisations use their collective buying power to often secure group PA policies at better rates or with broader coverage for their members.
One must make sure that the family members know about all your insurance coverages and have access to the necessary documents to file a claim in the event of an unfortunate accidental death.
