What is a Personal Accident Insurance Policy?

Accidents are unpredictable and can occur without any warning. Accidents impact not only the individuals involved but also their loved ones. These accidents can cause minor to severe injuries and in extreme cases, it may lead to death. Therefore, it is necessary to purchase Personal Accident Insurance.

 

Personal Accident (PA) Insurance is designed to compensate for the financial loss resulting from accidents that may lead to disability or death.

 

Types of Personal Accident Insurance

Shriram General Insurance provides two types of Personal Accident Insurance.

• Individual Personal Accident Insurance
• Group Personal Accident Insurance 

 

Individual Personal Accident Insurance

An Individual Personal Accident policy protects the insured person and their family during unforeseen events like disability or death caused by an accident. For example, when the insured person dies due to an accident, 100 per cent compensation will be provided to the nominee. In case of disability, a pre-determined amount will be paid to the insured person.

 

Group Personal Accident Insurance

A Group Personal Accident Insurance can be taken by a group of selected people who want to insure or secure themselves from the consequences of accidents. The group can be either big or small — for example, a group of people living in a gated community, employees of an organisation, students or passengers.

 

Group Personal Accident Insurance works best for industrial and commercial establishments to protect their employees’ insider work environment. In most cases, Group Personal Accident Insurance is customisable according to the group's size and requirements.
 

Key features & benefits of Personal Accident Insurance

Listed below are some of the features of Shriram’s Personal Accident Insurance Policy.

• Budget-flexible premium: Our budget-flexible premium insurance plan is designed to offer you premium benefits at an affordable price. We understand the importance of minimising your expenses, so we have streamlined the documentation process to make it hassle-free and straightforward.

 

• Paperless process: We believe in the power of technology, which is why we have implemented a paperless process for your convenience. You can complete the entire insurance process online, from application to claim settlement, with the support of our prompt and efficient online customer service team.

 

• Quick claim settlement at your convenience: With our insurance plan, you can have peace of mind knowing that your claims will be settled promptly. We prioritise efficiency and convenience, ensuring that you receive your claim amount quickly and without unnecessary delays.

 

• 100% Sum Assured: We stand by our commitment to protect your investment, which is why we guarantee 100% accidental claim benefits. In the unfortunate event of an accident, you can rest assured that you will receive the full sum assured as per the terms and conditions of the insurance plan.

 

• Avail Cover up to 70 Years: As you age, it's essential to have comprehensive insurance coverage to safeguard against any potential risks. Our insurance plan allows you to avail of coverage up to the age of 70, ensuring that you are protected throughout your entire life.

 

• Customer assistance: We understand that accidents and unexpected events can happen at any time, which is why we offer round-the-clock customer assistance. Whether you have questions about your policy, need assistance with a claim, or require any other support, our dedicated team is available 24/7 to provide you with the help you need.

 

By choosing our budget-flexible premium insurance plan, you can enjoy comprehensive coverage, hassle-free claim settlement, and outstanding customer support. We are committed to providing you with the best insurance experience possible.  

 

What is covered in Shriram Personal Accident Insurance?

Shriram General Insurance provides the following coverage for death/disability.

 

Accidental death

If the insured person’s unfortunate demise occurs during the policy tenure, the nominee will be paid 100% compensation. This compensation amount will help the insured person’s family to plan their financial requirements after their demise.

 

Transportation of the mortal remains

Personal Accident Insurance offers the added benefit of covering the transportation of the mortal remains of the deceased person from the place of death to the cremation ground or the hospital. The insurance provider will cover an amount equivalent to 2% of the sum insured for this purpose.

 

Children’s educational benefit

In case of the insured person’s accidental death or disability, the insurance provider will make a one-time payment of 2% of the benefit for the first two dependent children. This payment is intended to assist with their educational expenses.

 

Permanent Total Disability

If the insured individual suffers the loss of a body part, resulting in lifelong handicap, it is categorised as permanent total disability. In the event of such permanent total disability, the insurance provider will provide the insured person with full compensation of 100 per cent—for example, complete loss of both hands or legs.

 

Nature of disability	Claim percentage
Loss of two entire hands or two entire feet	100%
Loss of one entire hand and one entire foot	100%
Loss of sight of one eye and loss of one entire foot or hand	100%
Complete loss of hearing of both ears and complete loss of Speech	100%
Complete loss of hearing of both ears and loss of one limb	100%
Complete loss of hearing of both ears and loss of sight of one eye	100%
Complete loss of speech and loss of one limb	100%
Complete loss of speech and loss of sight of one eye	100%

 

Permanent Partial Disability

Permanent partial disability is when the policyholder experiences the loss of their thumb, index finger or shoulder joint due to an accident. In instances of such disability, the insurance provider will offer compensation based on the predetermined scale outlined below.

 

Nature of disability	Claim percentage
Loss of an arm at the shoulder joint	70%
Loos of an arm above the elbow joint	65%
Loss of an arm beneath the elbow joint	60%
Loss of a hand	55%
Loss of a thumb	20%
Loss of an index finger	10%
Loss of any other finger	5%
Loss of leg (above mid-thigh)	70%
Loss of leg up to mid-thigh	60%
Loss of leg (beneath the knee)	50%
Loss of leg up to mid-calf	45%
Loss of foot (near ankle)	40%
Loss of big toe	5%
Loss of any other toe	2%
Loss of an eye	50%
Loss of hearing (one ear)	30%

 

Temporary Total Disability

Temporary total disability will render the insured person incapable of carrying out their daily tasks. Consequently, the insurance provider will offer a weekly payment equivalent to 1 per cent of the capital sum insured per week. This payment, up to a maximum of Rs. 50,000, will continue until the insured person resumes work.
 

Exclusions

• Military operations: Injuries from military operations.

 

• Self-inflicted: Injuries from suicide, attempted suicide, or intentional self-harm.

 

• Criminal acts: Injuries from criminal acts due to insanity or immorality.

 

• Intoxication influence: Injuries caused by intoxication from alcohol or drugs.

 

• Dangerous hobbies: Injuries from engaging in dangerous hobbies involving aviation or ballooning.

 

• Motor racing: Injuries from participating in motor racing or trial runs.

 

• Pre-existing conditions: Injuries or disabilities arising directly or indirectly from pre-existing conditions.

 

• Pregnancy complications: Injuries related to pregnancy, childbirth, miscarriage, or abortion.

 

• Curative treatments: Injuries resulting from curative treatments or interventions.

 

Other benefits 

Hospital Confinement Allowance

In claims involving accidental death or temporary total disability, Shriram Personal Accident Insurance will provide compensation of Rs. 1000 for each day of hospitalisation. Nevertheless, Shriram provides a total payout for this coverage of Rs. 30,000, regardless of the number of claims made.

 

Accidental Hospitalisation Cover

Shriram will offer reimbursement for a range of expenses if the insured person is hospitalised for 24 hours or longer within the policy period. These include costs related to accommodation, intensive care, emergency room services, physician fees, nursing care, laboratory tests, treatments, prescription medications, anaesthesia, artificial limbs or eyes, blood transfusions, X-rays, prosthetic devices, medical supplies and ambulance charges.

 

Medical Expense Reimbursement

Under the medical expense reimbursement cover, if the claims fall within the core coverages like accidental death, temporary total disability, permanent total disability or temporary partial disability, Shriram Personal Accident Insurance will provide reimbursement for essential medical treatment expenses incurred by the policyholder from a qualified medical practitioner due to an accidental injury.

 

Modification of Residential Accommodation and Vehicle

If an injury occurs, Shriram Personal Accident Insurance will provide reimbursement, up to a maximum amount equal to the sum insured, for the purpose of adapting the insured person's residence or personal vehicle due to Permanent Total Disability, following the advice of the attending Medical Practitioner.

 

This benefit is contingent upon a claim being filed under Permanent Total Disability. The highest limit for this additional coverage will be Rs. 50,000/- for the adaptation of a single residential accommodation or vehicle.

 

How to choose the right Personal Accident Insurance Policy

To choose the right Personal Accident Insurance policy, consider the following tips.

• Assess your needs: Evaluate your lifestyle, occupation, and activities to determine the coverage you require. Consider your financial obligations and the potential impact of an injury.

 

• Policy limits: Review the policy limits to ensure they align with your needs. Consider factors like medical expenses, disability benefits, and coverage duration.

 

• Exclusions: Understand the exclusions of the policy to know what accidents or situations might not be covered. Be aware of any specific exclusions that may be relevant to your circumstances.

 

• Premiums and deductibles: Compare premiums and deductibles across different policies. Ensure that the premium is affordable and the deductible is reasonable for your budget.

 

• Policy terms and conditions: Understand the terms and conditions of the policy, including claim procedures, waiting periods, and renewal options. 

 

Conclusion

In conclusion, Personal Accident insurance is an essential insurance that helps people during unforeseen events like accidental death and disability. The cover also benefits the policyholder’s family. It will provide them with the necessary financial support.

 

FAQs

1. Is Personal Accident Insurance eligible for 80D?

Personal accident insurance does not qualify for tax benefits under Section 80D.

 

2. Why choose Personal Accident insurance?

A Personal Accident coverage plan compensates the policyholder and their beneficiaries for accidental death or disability. Some insurance providers also extend compensation to the policyholder's first two dependent children.

 

3. Is Personal Accident insurance mandatory?

As per India Motor Tariff 2002, purchasing a Personal Accident Cover is mandatory. A compulsory Personal Accident Cover is available for customers to choose from while purchasing their motor insurance policy. However, buying a standalone Personal Accident Cover from Shriram General Insurance helps get additional benefits such as hospital confinement allowance, accidental hospitalisation cover, medical expense reimbursement, etc.