Accident Insurance

Accident Insurance

Accident insurance provides a cash cover to a policyholder when s/he suffers injuries as a result of an accident. While insurance helps a policyholder pay off hospital and medical bills in case of accident injuries, it provides cash benefits to family members if the policyholder dies in the accident. This insurance, applicable 24 hours a day, 365 days a year, is also commonly referred to as personal accident insurance.
Types of Personal Accident Insurance Policies

Under personal accident insurance, the policyholder, if injured, receives cash benefits every month, just like income, for as long as s/he is unable to work due to the accidental injuries. This income is non-taxable and does not exceed the policyholder’s after-tax earnings minus the state benefits s/he can claim. In case of death of the policyholder due to an accident, the family receives a specific lump-sum amount.

There are eight common types of personal accident insurance policies:

* Individual: This policy can be taken by any individual. The benefits usually enclose partners and children. Since several activities are excluded from this policy, it is not as useful for people who love adventurous sports, like mountaineering and rock climbing.

* Children: The purpose of this policy is to provide financial help to parents if they are unable to work or if they incur expenses as a result of an accident.

* Group: This policy is used by companies to cover employees for expenses related to accidents.

* Self-employed: Since self employed individuals are not eligible for employee benefits, they are worse off when injured in an accident.

* Team: Through a team accident insurance policy, organizers can seek cover for all the members of a sports team.

* Professional: This policy is specifically for self employed professionals, such as a sportsperson, actor, lawyer or doctor, who have special requirements.

* Over 50: This policy targets people over 50 years of age, as accidents can cause more grievous injuries to them.

* Travel accidents: This policy offers benefits in case the policyholder meets with an accident while traveling.

There are varied accident insurance policies to suit different needs. One should understand and choose the policy with utmost care.