Personal accident insurance
Accidents may result in disability impacting one’s earning capacity or may result in death of the individual.
There are accident insurance plans covering these risks.
Some of them could be standalone personal accident insurance policies available with general insurance companies.
They may be available as an optional rider with a life insurance policy.
Disability coverage includes four contingencies that may arise from an accident
Death, permanent total disability, permanent partial disability, and temporary total disability.
Tips to buy personal accident insurance
- Choose your preferred insurer as premiums are largely the same across insurers.
- Pay the premium based on risk category depending on your income, profession.
- Opt for comprehensive cover to include four contingencies.
Even though only the third party coverage is mandatory.
It pays to get a comprehensive cover for your vehicle.
Together with 3rd party cover and the ‘own-damage’ cover.
A comprehensive policy can help you save money when there is damage to your own vehicle.
Nowadays, there are ‘add-ons’ that can provide extra coverage in your policy.
Always remember, to transfer your no-claim bonus to the new car, if you are replacing your old one.
This way, you would be able to save 20-50 per cent on the first premium of your new car.