Accident Insurance

04 November 2008

Accidents don't just happen on the roads. They can crop up in your office, while travelling, attending a function, or even at home while doing everyday household tasks. And when it comes to money, it creates a double impact. On the one hand, the healthcare expenditure rises as you undergo a treatment or an operation. On the other hand, your income is disrupted till you recover. It is here that accident insurance plays the vital role of keeping the forceps from closing on you and your family.

The experts say that for people below 45 years of age, the risk of accident is higher than health problems. Health risks and operating costs mount with age and tend to typically shell out when a person is 45 years or older. They also say that people between 25 and 55 years of age are twice more likely to get disabled than die.

What's on offer? There are two major insurance options to cover the risk from accidents in most countries. First, you can opt for stand-alone personal accident insurance policies sold by general insurance companies. Second, you can also take an accident rider along with a life cover.

PAIP This policy exclusively covers any bodily injuries due to accidents, which are external, violent and visible, as the definition goes. It covers you for four unforeseen events that may arise from an accident: death, permanent total disability, permanent partial disability, and temporary total disability. Like benefits of all insurance policies, buyers need to understand very well how these contingencies are defined in the policy.

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