Diwali is a festive time when families celebrate by giving gifts to each other. We wish our respective family members good health and prosperity. But, just wishing is not sufficient otherwise we'd all be millionaires. This might sound unorthodox, but most critical gift that you can get for the family this Diwali is buying a Personal Accident policy. For approximately Rs 100, less than the price of a kilo of mithai, you can be rest assured that in case something happens to you in the coming year, you can get up to Rs 1 lakh of protection.
Almost every day of the week, one hears of someone who has had a road accident or some other accident resulting in total or partial disability. Whether it is a colleague in one's office, a distant relative, or an old classmate, stories of such incidents are common enough to give us a daily reminder that accidents can happen to anyone and that they come without prior warning. An injury arising from an accident or a physical disability can lead to financial hardships arising out of loss of mobility, your livelihood and job. You might not be able to avoid accidents, but you can certainly protect against the consequences of being in an accident.
Personal Accident Coverage (PA) is a kind of insurance coverage that covers your financial losses resulting from an accident or disability. Lets say a person fractures their leg in accident. A PA policy cannot get your leg back in the same healthy state, but it can cover your financial losses you might suffer as a result of losing your mobility, suffering a disability that affects your earning capacity or even loss of work arising from your accident.
Additionally, almost all PA policies cover death by accident. In some cases, death due to an act of terrorism is also covered. All policies have a minimum and maximum age of entry, but you could get coverage right from age 2 through to age 70+, but certain conditions might apply depending upon your age. Depending upon your personal circumstances (an estimation of the losses you might suffer as a result of an accident or disability), you can choose to get a coverage amount of anywhere from Rs 1 lakh up to a few crores.
In India there are 2 ways to get PA coverage. In both cases, the cost of PA coverage is very cheap - as a rule of thumb it costs you about 0.1% of the coverage that you need. So if you want to be covered for up to Rs 10 lakhs, all you need to pay is approximately Rs 1,000 annually. In Diwali terms, that works out to less than a box of mithai per month! The rates might be marginally cheaper for women as insurance companies see women as having lower risk than men.
Sarvar said :
|Doesn't a health insurance policy cover injuries due to personal accidents as well?|