Friday, August 01 2025
Source/Contribution by : NJ Publications

In the past few weeks, India has witnessed a spate of accidents that have shocked the nation. From the tragic Ahmedabad plane crash landing incident that injured multiple passengers, to the unfortunate stampede during Royal Challengers Bengaluru's IPL victory celebrations, Mumbai local train and multiple reports of vehicles plunging into gorges in hilly states-these incidents are grim reminders of how unpredictability surrounds our daily lives.

While we often insure our lives, cars and health, Personal Accident Insurance still remains underutilized and poorly understood. Yet, it's one of the few covers that directly supports individuals and families when sudden mishaps derail everyday life. This article breaks down how a personal accident policy can be a financial lifesaver, especially in light of recent real-life tragedies.

A Personal Accident (PA) Insurance policy provides financial compensation in case of injuries, disabilities, or death due to accidents. Unlike a health policy that pays for hospitalization or a life policy that pays only on death, PA insurance covers a wider spectrum-death, permanent disability, temporary disability, fractures, burns, and loss of income due to injury.

Such a policy ensures that an accident doesn't result in both physical and financial disability.

• Financial Security for Your Family: In the unfortunate event of your accidental demise, the policy provides a (100% sum assured) lump sum to the family, helping them manage immediate expenses, clear debts, and maintain their lifestyle. This is particularly vital if you are the primary or sole earning member.

• Income Replacement during Disability: Accidents can lead to disabilities that prevent you from working, either temporarily or permanently.This is where the Loss of Income (Temporary Total Disablement - TTD) cover becomes paramount. If an accident renders you temporarily unable to work (e.g., a broken leg requiring months of recovery), this cover provides a regular income for a specified period, ensuring your household expenses are met even when your regular salary stops.

• Protection against Permanent Disabilities: If an accident leads to a permanent partial or total disability (e.g., loss of a limb or eyesight), the policy pays out a percentage (upto 50% - 100%)or the full sum assured, respectively.This compensation can be crucial for adapting to new circumstances, making necessary home modifications, or even pursuing new livelihood options.

• Worldwide Coverage: Many personal accident policies offer worldwide coverage, meaning you're protected whether the accident occurs in India or during international travel.This is especially relevant in a world where travel is increasingly common.

• Affordability: Compared to other insurance products, personal accident policies are generally quite affordable, offering substantial coverage at a relatively low premium. Sample Premium - Approx. Rs 21,000/- for 50 Lacs comprehensive PA policy for Self, Spouse and 2 kids.

Key Add-Ons You Should Not Ignore

1. Loss of Income / Temporary Total Disability (TTD) Cover

This add-on pays a weekly benefit (usually ₹25,000 to ₹50,000/week) if the policyholder is temporarily unable to work due to an accident. For salaried individuals, freelancers, or shop owners, this protects livelihood during recovery. It can be availed for up to 100 weeks, depending on the severity.

Example: A small business owner fractured his hip in a minor car accident. Though not hospitalized, he couldn't walk or operate his shop for 2 months. With a TTD add-on, he received ₹50,000 per week, totaling ₹400,000-critical to keep his business afloat and pay EMIs.

2. Fracture and Bone Injury Cover - A Must for Children & Elderly

Children and the elderly are especially prone to falls, injuries. As individuals age, their bones become more brittle, making them more susceptible to fractures from even minor falls. Yet, their injuries may not lead to hospitalization, meaning health insurance may not come into picture.

A dedicated fracture cover within a personal accident policy specifically provides a lump sum payout upon diagnosis of a covered fracture, regardless of whether it leads to a permanent disability.

• A 7-year-old injures her forearm while playing cricket.

• A 70-year-old grandmother fractures her ankle slipping in the bathroom.

In both cases, the insurer pays a predefined amount (e.g., ₹15,000 to ₹50,000), regardless of actual expenses. This helps cover diagnostic tests, consultations, splints, or physiotherapy.

Who Needs Personal Accident Insurance?

Everyone. But it's especially important for: Salaried, Self-employed, Housewife, Elderly, Children, Frequent travellers, etc.

Key Benefits to Look For

When choosing a PA policy, prioritize:

• Accidental death cover (₹50 - 100 lakhs or more)

• Permanent disability benefit

• Temporary disability (TTD) income support

• Fracture benefit

• Burns and disfigurement compensation

• Child education benefit (on policyholder's accidental death)

• No hospitalisation requirement for minor claims

Prevention is Good, But Protection is Better

We can't prevent every accident. But we can prepare for the aftermath. Whether it's a stampede, a holiday mishap, or a freak accident at home-Personal Accident Insurance offers the critical financial shield your health or life policy may miss.

In India's rapidly urbanizing and mobile society, where public events, travel, and daily commuting bring new risks, a personal accident plan is no longer a luxury. It's a necessity.

Talk to your Insurance Sales Person today to review your accident coverage-especially if you have elderly parents, school-going kids, or are self-employed. It's an investment in your safety and security that truly pays off when you need it most.