11 Things to Consider When Purchasing a Personal Accident Coverage

Nowadays, almost everything you buy or any company you register with would offer you a Personal Accident coverage with high sum assured and discounted premium. These offers can be really attractive. Anyone would feel inclined to buy. After all, a coverage is a necessity. It’s cheap! And you only have to pay 50% of the usual premium now and every time you renew your policy!

Some people own over 20 personal accident policies without knowing the benefits. When it’s time to make claims, probably only one or two of those would pay. What about the others? They tell you, “Oh, this plan does not cover what you just went through…” So you paid – discounted as it may have been – for absolutely nothing. You’d have to make sure you die of an accident in order to reap the benefits of all the policies you’ve bought. Well, it’s not you, but your beneficiary who will get that lump sum you’ve been hoping for.

Here are some of the things you need to take into account when purchasing a personal accident coverage:

1.      Accidental Living Benefit

If you survive an accident, you will receive a lump sum for the above benefit as stated in your policy. The living benefit is usually twice the sum assured, which is the death benefit.

2.      Accidental Death Benefit

If you do not survive an accident, you beneficiary will receive the sum assured.

3.      Accidental Dismemberment Benefit

If you survive an accident with loss of any part of your body, you will receive a percentage of the total amount of cover, depending on the severity of your injuries. The percentages vary from insurer to insurer.

If you survive an accident with permanent and total disability, you will receive the sum assured.

4.      Medical Reimbursement

Let’s side-track for a paragraph. A hospitalisation and surgical coverage allows you to claim if you are hospitalised. However, if you are admitted to the emergency ward for some stitches following an accident, you will not be able to claim from your hospitalization and surgical policy.

Medical reimbursement under the personal accident policy lets you claim your medical and surgical expenses, whether it is an out-patient or in-patient treatment for any injuries caused by an accident. There is a maximum amount of claim, depending on the plan offered and the amount of sum assured.