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10 points about Personal Accident (PA) Insurance covers

1. History shows that in an accident disablement is more common than death. So PA cover is normally more useful than life cover.

2. The policy insures against Death and Loss of Limbs/Eyesight/Hearing (Permanent Total Disablement, Permanent Partial Disablement and Temporary Total Disablement).

3. PA Cover is very economical. It would cost you only around Rs.500 to Rs.2000 for Rs.10 lakhs of insurance depending on the type of cover you choose...from basic to comprehensive. As a bonus, 5% cover is increased every year if there is no claim in the previous year (subject to a max of 50%).


4. The payout is a pre-defined percentage of Sum Assured depending on the extent of injury.

5. Subject to additional premium payment, even medical expenses reimbursement can be covered.

6. Since Accident riders that come along with Life or Medical insurance policies are not comprehensive, buying a standalone policy is a better alternative.

7. Premium does not depend on age...it depends on your profession. For example, a banker faces lower risk of accident than a miner (and hence lower premium).

8. The policy provides worldwide coverage. But claim will be paid in Rupees

9. Unlike life and medical insurance, PA cover does not enjoy any tax benefits.

10. Naturally...it doesn't need any health check-up.


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