You have a Term Insurance policy of ₹1 Crore. You have a Health Insurance policy of ₹10 Lakhs. You feel fully protected.
But imagine this scenario: You are riding your bike to work. A truck hits you. You survive (thankfully), but you lose your eyesight or suffer a spinal injury that leaves you wheelchair-bound. You cannot work anymore.
The Financial Disaster:
- Your Term Plan pays ₹0: Because you are not dead.
- Your Health Plan pays Hospital Bills only: It won't pay for your children's school fees or your home loan EMI while you sit at home.
This is where Personal Accident (PA) Insurance saves the day. It is the cheapest yet most ignored policy in India.
Disclaimer: Policy benefits depend on the specific terms (PTD, PPD, TTD). Always check the policy wording. This article is for educational purposes only.
Alive But Unable to Work? Why "Personal Accident Insurance"
1. What Does It Actually Cover? (3 Tiers)
Unlike life insurance which is binary (dead or alive), PA Insurance covers the grey areas of life.
| Coverage Type | What It Means | Payout |
|---|---|---|
| Accidental Death (AD) | You die in an accident. | 100% of Sum Assured to Nominee. |
| Permanent Total Disability (PTD) | Loss of two limbs, two eyes, or paralysis. You can never work again. | 100% to 150% of Sum Assured (Income Replacement). |
| Permanent Partial Disability (PPD) | Loss of one eye, one finger, or hearing in one ear. | Percentage of Sum Assured (e.g., 50% for one hand). |
2. The "Weekly Cash" Benefit (TTD)
This is the hidden gem of PA policies.
What if you just break a leg and are bedridden for 3 months? You will recover, but you lose 3 months of salary (or commission).
Temporary Total Disability (TTD) benefit pays you a weekly cash allowance (e.g., ₹5,000 to ₹50,000 per week) while you recover. It ensures your kitchen keeps running even when you can't walk.
3. Rider vs. Standalone Policy: Don't Be Cheap
When buying a Term Plan or Car Insurance, the agent will ask: "Add Accident Rider for ₹500?"
Say NO. Buy a separate Standalone Policy instead.
- Riders are weak: They usually cover Death and PTD only. They rarely cover Partial Disability or Temporary Income Loss.
- Standalone is comprehensive: For just a slightly higher premium (e.g., ₹1,000/year), you get comprehensive coverage including ambulance charges, child education bonuses, and broken bones cover.
4. Mandatory ₹15 Lakh Cover is Not Enough
You might say, "I already have the ₹15 Lakh CPA cover with my bike insurance."
Ask yourself: Is ₹15 Lakhs enough to replace your lifetime income?
If you are 30 years old and earn ₹10 Lakhs a year, a permanent disability means you lose crores in future earnings. You need a cover of at least 10 to 15 times your annual income.
5. Who Needs It Most?
In India, road accidents happen every minute. If you fall into these categories, this policy is mandatory for your survival:
- Two-Wheeler Riders: You are the most vulnerable on the road.
- Field Sales / Delivery Partners: Your job requires travel. Higher risk = Higher need.
- Freelancers / Self-Employed: If you don't work, you don't get paid. You have no "paid sick leave." This policy acts as your sick leave.
Conclusion: The Price of Two Pizzas
A comprehensive Personal Accident policy of ₹25 Lakhs can cost as little as ₹2,000 to ₹3,000 per year.
That is the price of a family dinner. Don't gamble with your ability to earn. Secure your income against the unpredictable chaos of Indian roads today.
Helpful Resources:
PolicyBazaar: Compare PA Plans
Star Health: Accident Care Policy
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