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Mechanism of Personal Accident Insurance Policy

Posted On : 03 May 2023, 11 Months Ago. Health-Insurance
Personal Accident Insurance Policy

Accidents are unpredictable, and they can happen at any time, resulting in physical harm or even death. Unfortunately, no one can predict when or how an accident may occur. Still, you can protect yourself and your loved ones from the financial burden that follows such an incident by purchasing a personal accident insurance policy.

 

An accident insurance plan provides coverage to individuals in the event of an injury or death caused by accident. Accident insurance in India typically covers accidental death, permanent total disability, permanent partial disability, temporary total disability, and medical expenses. This article will discuss this mediclaim policy details and how it works.

 

The Working of Accident insurance in India

Understanding what is personal accident insurance and its mechanism can help you make a better decision when looking for the best personal accident insurance plan. Let's take a look at the steps required to avail of insurance benefits effectively: 

 

Purchasing the Policy

Shop around and compare personal accident insurance policies from different insurers to find the one that is most compatible with your needs. Some of the factors to consider when purchasing the plan include the sum insured, premium payment options, and exclusions. The premium payment options vary, and you can choose to pay the premium monthly, quarterly, semi-annually, or annually. You can use the online personal accident insurance premium calculator to estimate the premium.

 

Coverage Period

The coverage period is the duration during which the policy provides coverage. The coverage period can range from one year to multiple years, and it's important to ensure that the policy is active and up-to-date at all times. Before purchasing a policy, ensure that you understand the policy's coverage period and renewal process.

 

Types of Coverage

Accident insurance in India typically covers accidental death, permanent total disability, permanent partial disability, temporary total disability, and medical expenses. Accidental death coverage provides financial support to the nominee or legal heir of the policyholder in the event of the policyholder's death due to an accident. Permanent total and partial disability coverage provides financial assistance to the insured in the event of a disability of permanent nature, like the loss of a limb. Temporary total disability coverage offers support in the case of a temporary injury. Finally, medical expense coverage covers the expenses incurred due to an accident.

 

Making a Claim

After an accident, the policyholder or their nominee needs to inform the insurance company within the stipulated time frame mentioned in the policy document. In addition, the policyholder or their nominee must submit the documents required by the insurer to support the claim. The necessary documents include medical reports, death certificates, and police reports. The insurer evaluates the claim based on the policy terms and conditions and the submitted papers. Therefore, it's important to follow the claim process carefully and provide accurate information to ensure a smooth claim process.

 

Payout

If the claim is approved, the insurance company pays the policyholder or their nominee the sum insured per the policy terms and conditions. The payout amount is based on the policy and the severity of the injury or loss. Factors that can affect the payout amount include the type of coverage, the sum insured, and any exclusions. It's important to read the policy document thoroughly and understand the payout process to ensure a smooth one.


Accident insurance in India can offer relief knowing that you and your family have the necessary financial protection to deal with unexpected events. However, carefully read the policy's terms and conditions to understand the coverage, exclusions, and limitations and choose a reputable health insurance company with a good track record of paying out claims.

Secure your health with comprehensive insurance plans from Nivabupa

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