The ultimate form of insurance is the one that secures your health and wellbeing. Since accidents account for millions of deaths and injuries around the world, personal accident insurance is one of the wisest policies to purchase. Personal accident insurance compensates you financially for injuries due to an accident. It has a huge potential benefit, especially when a fatal accident could change the direction of your life for good.
What is personal accident insurance policy?
This is the policy that covers you against injuries from accidents by reimbursing your medical cost. The policy also provides compensation in case of death or disability caused by an accident. This policy is useful especially for those who work day-to-day job and taking a time off to heal could be financially burdensome. Purchasing this policy means that you would not worry about the bills to take care of yourself in the event of an accident.
What is the difference between personal accident insurance and life insurance?
Although they sound the same, they are indeed quite different. Life insurance provides financial compensation in the event of the unfortunate death of a person. The death could be as a result of any reason, and as long as it is captured in the policy contract, you can make a claim. On the other hand, PAI only provides compensation in a case of injuries or death resulting from an accident. One covers life generally, while the other only kicks in when an accident causes death or injury.
What are the benefits of personal accident insurance?
This type of insurance has the following benefits:
- It covers you against disability and death on account of an accident
- It also caters for hospitalization expenses after an accident and gives accidental hospital daily allowance
What is covered under personal accident insurance?
Personal accident insurance covers all injuries or death resulting from accidents. As long as it resulted from an accident, you are qualified to make a claim.
What does it not cover?
Personal accident insurance does not usually cover the following:
- Pre-existing disability condition or disability or accident arising out of it
- Consequential losses and legal liabilities
- Curative treatment or interventions
- Damages resulting from civil war, invasion, revolution, insurrection, mutiny, seizure, capture, arrest, confiscation, insurrection, etc.
- Injuries or death while engaged in hazardous sporting activity
- Death or injuries under intoxicating liquor or alcohol
- HIV or other related illnesses
- Natural death
- Death or injuries from participating in military force operations
- All pregnancy conditions or complications arising from it
- Sexually transmitted diseases
These conditions could be more or less depending on the insurance company. However, they generally exclude a majority of these conditions.
While you do your best to stay safe, accidents are largely out of your control, especially on major roads. This is why personal accident insurance is your best bet for peace of mind. Knowing that you and your family are secured if caught up in the unexpected is worth everything. Incase of some incidents that are unexpected some companies offer Ex Gratia Insurance. They are insurance done out of favor