Top 6 Lessons About Personal And Family Insurance To Learn

                                                             

                                                                       

personal-and-family-insurance

Personal And Family Accident Insurance

Nobody can predict how and when an accident is going to happen and oneself or any family member may die or may become permanently disabled. May God forbid but in such a circumstances a huge cost for medical treatment is to be borne by the head of the family. So it is always wise to have an insurance cover for oneself and the family members in case of such an unpredictable eventuality.

This type of policy offers compensation in case of bodily injury or death to the insured person(s) directly and solely caused by an accident, external, visible and violent means. An accident may cripple a family's financial resources due to very high modern medical cost involved in well known and reputed private hospitals.



An accident policy ensures financial coverage to the family to deal with these medical expenses by providing funds on an urgent basis. In the absence of proper medical treatment, the victim may die or his/her movement may become restricted for ever. An accident policy usually operates worldwide 24 hours a day. Under this segment of policy different covers are available to meet different types of need, from a restricted cover of death only to a comprehensive cover of death, temporary or permanent disablements.

An accident policy is available for oneself or may cover the entire family with a rider. Group personal accident policies are also available for specified groups with a discount in premium depending upon the size of the group. This type of policy is designed to allow a financial support payable in the form of compensation to the insured(s) for suffering bodily injury due to an accident which is external, violent and visible. Main features :- 

An accident policy covers individuals between 5 to 70 years

The policy is generally issued for 1 year and is renewable thereafter

The policy may cover self only or/and spouse, dependent children and dependent parents 

In case of unfortunate death usually 100% of the sum assured is payable

Possessing an accident policy gives one mental peace and one need not suffer from anxiety and helplessness about how to arrange for medical treatment. Rebate is allowed in income tax by the government for payment of premium on account of an accidental policy upto a certain limit. Individual and group personal accident policies cover expenses of treatment of an accident covered under the policy as well as for total/partial and temporary/permanent disabilities.

A Typical Personal Accident Insurance usually covers :-

• Accidental Death Benefit

• Total Permanent Disability Benefit

• Permanent Partially Disability Benefit

• Temporary Partial Disability Benefit

• Hospitalization Expenses

• Some Policies Also Cover 'Loss of Income Risk' Due to Total/partial Permanent Disability

In case of an 'accidental injury' following things to be done promptly :-

• Notify the policy issuing company immediately

• Submit police report if any

• Fill up claim form and enclose medical certificates certifying disabilities

• If the policy covers medical expenses also, the original prescriptions/cash memos to be submitted

In case of death caused by an accident :

• Notify the policy issuing company immediately

• Fill up 'claim form' and enclose copy of 'death certificate', 'autopsy report', 'police report' and policy in original

Accidental policies do not cover death or disablements because of :-

• Suicide or attempted suicide and intentional self injury

• Death/disablement caused by drugs, consumption of liquor or anything intoxicating 

• Breach of law with criminal intent

• Any pre existing physical or mental disorder

• Armed/Police forces personnel, Aircraft pilots deployed in hazardous conditions

List of major companies(some of them in collaboration with foreign companies also) in India providing  'Accidental Insurance Policies' :-

• Tata AIG

• Max Bupa

• Star Health

• SBI Life

• Bajaj Allianz

• The New India Assurance Company Ltd

• HDFC Life

• Appolo Munich

• National Insurance

• Royal Sunderam

You may visit websites of these companies for full 'terms & conditions', premium and amount of coverage. 

Premium of an accidental policy does not always depend on age :-

The premium of an 'accidental policy' is dependent on 'working condition' and 'nature of job' of the assured rather than age. There is a major difference in 'risk factors' for a person working in an office than a person working in a 'Fire Brigade' or a person working in a factory full of hazardous machines. Hence, each kind of job profiles are divided into various risk levels viz, Risk Level 1 / Risk Level 2 / Risk Level 3 etc. Therefore, the amount of premium for a person of similar age group but working under various conditions differs widely.