Will your personal accident insurance cover you for multiple accidents? Here¡¯s what to know!

In the unpredictable journey of life, where every turn may bring a surprise, what most people fear is the accident of a loved one. Accidents can not just cause physical injury but also have a rippling effect on the person¡¯s mental well-being. Serious accidents can also impact a person¡¯s mental and financial well-being. After all, the burden of dealing with this trauma can fall directly on one¡¯s savings. While regular health insurance plans cover hospital bills, inadequate coverage can force compromise.

If you are looking for a solution to help you through such tough times, then opting for personal accident cover can be the right move. Read on to know more.

What is Personal Accident Insurance Cover?

Personal Accident Insurance cover, as the name suggests, is a kind of health insurance policy that offers coverage in case an insured member has an accidental injury. Such injuries typically arise from medical emergencies such as a fall or a motor accident. The PAC is a contract between the policyholder and the insurer where, in case of an accident during the term of the policy, a lump sum amount is paid to the policyholder (or their nominee). In most cases, the insurer pre-defines the accidental scenarios.

Apart from paying the hospital bills, a personal accident policy is all the more useful because it offers coverage for disability and death. In case the insured individual suffers any disability or dies in an accident, their appointed nominee receives the coverage benefits. Please note that the coverage/sum payable depends on the policy chosen.

Importance of Personal Accident Insurance Cover in India

There is no denying that accidents can take place regardless of any boundaries of time or geography. Yet, accidental coverage in India is all the more essential. With over 63.32 lakh kilometres of roads, India has the world¡¯s second-largest road network. While there has been a significant improvement in the condition of roads and highways, the number of road accidents presents a sad picture.

It is estimated that every year almost 1.35 million people die in road accidents all over the world. A whopping 93% of these fatalities occur in low and middle-income nations such as India. Caused by multiple factors like over-speeding, drunken driving, lack of traffic sense, and weak enforcement of traffic rules make road accidents a pressing concern.

The government is trying to address these issues through improved infrastructure, road safety education, and stricter enforcement. However, road safety is a shared responsibility. Citizens must follow traffic rules, use safety equipment, and promote responsible driving. Along with this, having the right coverage is essential. The impact of road accidents extends beyond the victims. The whole family bears the consequences, especially if the injured is among the primary earners. The loss of income can come down heavily on everyone.

Having adequate coverage in such a scenario becomes all the more crucial.

Inclusion of Personal Accident Insurance Cover

In most cases, your health insurance plan will include coverage for accidents from day 1. However, it should be kept in mind that the coverage will depend on the sum insured that you have chosen with your policy. Also, it is up to you if you want personal accident coverage as a separate health insurance policy or as a rider over and above your basic health insurance plan. Most health insurance providers provide both these options, you can choose what you need.

It should also be kept in mind that a health insurance plan will typically cover the in-hospital expenses. If the insured is injured critically, a modest health plan may fall short. This is why having separate personal accident coverage is all the more useful. The lump sum amount that the cover will pay can help you deal with all the unforeseen expenses that may arise after an accident. Let us take a look:

1. Accidental Death
A regular health insurance policy does not offer coverage for the insured's death. However, with the personal accident cover, the nominee will receive 100% of the sum insured.

2. Disability

Depending on the severity of the injury and the disability, the sum insured benefits are payable.

3. Broken Bones and Burns

Some personal accident cover plans offer coverage for fractures and broken bones. Second or third-degree burns caused by any accident are also covered.

4. Coverage for family

You can get coverage for your family members under a single policy as well. Contact your insurance provider to confirm if that is possible.

5. Global coverage

Some insurers offer accidental coverage even if an emergency situation arises when you are abroad.

Will Your Personal Accident Insurance Cover You for Multiple Accidents?

Just like a health insurance policy, you are allowed to make multiple claims with your personal accident coverage. There is generally no restriction on how many claims can be made in a policy year. At the same time, however, you need to remember that the claim also depends on the sum insured of your policy/ the personal accident cover rider.

In case a claim is made for permanent partial disablement and temporary total disablement, the policy will not be terminated. You may be allowed to make multiple claims as long as the total claim amount payable under this benefit equals the pre-determined sum insured.

Take a look at this example to understand. Suppose you have an INR 10 lakh personal accident cover. If you make a claim of INR 6 lakhs at the beginning of a year and then need a claim amount of INR 5 lakhs a few months later, then the policy will only pay the remaining balance of INR 5 lakhs. The remaining INR 1 lakh will have to be borne by you, the policyholder.

However, bear in mind that in case of accidental death of the insured, once the sum insured is paid to the nominee, the policy will be terminated.

In Conclusion

Accidents, especially road accidents, can be devastating. Careful driving and collaborative efforts involving drivers, media, and government can help raise awareness of road accidents and their fatalities.

Untimely deaths, injuries, and disabilities can have life-long effects on the victim as well as their families. While it may not always be possible to avert these tragedies, the right coverage can ensure that financial burdens are minimised during such challenging times.

With personal accident insurance, individuals can protect themselves and their loved ones from the long-term economic impact of accidents.