Accidental Insurance Plan

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Concepts & FAQ's Accident Plan

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Why buy Accidental Insurance Plan?

Pays a Death Benefit:

The family members of the policy holder get the death benefit, if death is due to an accident.

Pays for hospitalization due to Accidents:

Pays for any temporary, partial or permanent injury you may suffer in an accident.

The Plan is Cheap:

The premium for a basic accident plan or even a comprehensive accident plan is very low.

Special Benefits:

There are special accident plans available to high risk workers, who work in mines, oil rigs and have high exposure to accidents.

Eligibility for Accidental Insurance Plan:

You should be in the age group of 18 to 65 years.

Personal accidental insurance plan can be renewed till the age of 75 years.

Frequently Asked Questions

Key factors to consider for Accidental Insurance

Types of Accidental Insurance Plans:

Individual Accidental Policies: Individual Accidental policies cover an individual in case of any accident.
Group Accident Policies: As the term itself suggests, a Group Accident policy is not meant for individuals. It is taken by employers for their employees. Depending on the group size, discount on premium may be offered. It is a good value added benefit for small organizations, and is available at a low cost. However, this is very basic cover and may not offer benefits like that of individual accidental insurance plan.

How to Make a Claim on a Personal Accidental Insurance Plan?

The general process of making a claim is given below:

Inform the insurer about the accident:

The insurer must be informed about the accident as soon as possible. The insurer may also be informed while the insured is on the way to the hospital. In order to show proof that the claim has been filed with the insurer, the policy number or reference number of the insurer should be communicated.

Inform the insurer at the time of hospitalization:

Group Accident Policies: As the term itself suggests, a Group Accident policy is not meant for individuals. It is taken by employers for their employees. Depending on the group size, discount on premium may be offered. It is a good value added benefit for small organizations, and is available at a low cost. However, this is very basic cover and may not offer benefits like that of individual accidental insurance plan.

Inform the insurer at the time of hospitalization:

The insurer must be intimated on the hospital where the insured is undergoing treatment, and the nature of injury.

The insurer must collect and maintain all documents relating to the hospitalization. Bills for Diagnosis, treatment, hospital room rent and so on should be organized and maintained, for ease of claims.

Fill the claim form.
Submit the FIR or police report if required

Who Should Buy Personal Accidental Insurance?

You must have accidental insurance especially if you have availed other loans like a Home Loan, Car loan and so on. This would come in handy for repayment of EMIs, in case of an accident.

The premiums on Accidental Insurance Plans are decided based on the insured’s occupation and not age.

Three categories of occupational risk:

Class 1: Low Risk	Class 2: Moderate Risk	Class 3: High Risk
Accountants	Drivers of heavy vehicles	High-Risk Construction Workers
Lawyers	Builders	Workers in underground mines
Bankers	Professional Athletes	Those who work with explosives

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Answer 1

An accident is an uncertain, unplanned event. It just happens. Soaring medical costs and quality time lost due to not being able to work, prove to be very costly.

Answer 2

A Basic Accidental insurance is a simple plan, where the insured’s nominee or family gets the Sum Assured, if the insured dies in an accident.

Answer 3

An insurer has to pay a higher premium in case of a Comprehensive Accident plan, compared to a Basic Accident plan, to avail the same or lower Sum Assured. Unlike a basic accident plan, the insured also gets money for the treatment and/or hospitalization for injuries related to accidents.

A person can suffer from 3 types of disabilities, caused in an accident. They are permanent total disability, temporary total disability, and permanent partial disability. A Comprehensive Accident plan either pays the insured the entire sum assured, or a percentage of the sum assured, based on the type of disability that the insured suffers.

If the insured meets with an accident leading to a temporary total disability, which causes loss in income (remember he cannot work), a Comprehensive accident plan pays the sum assured to compensate for this loss.

Accidental Insurance Plan

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