Many people like to buy personal accident coverage for themselves from just about any company. But do they really know what they are actually paying for?
Nowadays, almost everything you buy or any company you register with would offer you a Personal Accident coverage with high sum assured and discounted premium. These offers can be really attractive. Anyone would feel inclined to buy. After all, a coverage is a necessity. It’s cheap! And you only have to pay 50% of the usual premium now and every time you renew your policy!
Some people own over 20 personal accident policies without knowing the benefits. When it’s time to make claims, probably only one or two of those would pay. What about the others? They tell you, “Oh, this plan does not cover what you just went through…” So you paid – discounted as it may have been – for absolutely nothing. You’d have to make sure you die of an accident in order to reap the benefits of all the policies you’ve bought. Well, it’s not you, but your beneficiary who will get that lump sum you’ve been hoping for.
Here are some of the things you need to take into account when purchasing a personal accident coverage:
1. Accidental Living Benefit
If you survive an accident, you will receive a lump sum for the above benefit as stated in your policy. The living benefit is usually twice the sum assured, which is the death benefit.
2. Accidental Death Benefit
If you do not survive an accident, you beneficiary will receive the sum assured.
3. Accidental Dismemberment Benefit
If you survive an accident with loss of any part of your body, you will receive a percentage of the total amount of cover, depending on the severity of your injuries. The percentages vary from insurer to insurer.
If you survive an accident with permanent and total disability, you will receive the sum assured.
4. Medical Reimbursement
Let’s side-track for a paragraph. A hospitalisation and surgical coverage allows you to claim if you are hospitalised. However, if you are admitted to the emergency ward for some stitches following an accident, you will not be able to claim from your hospitalization and surgical policy.
Medical reimbursement under the personal accident policy lets you claim your medical and surgical expenses, whether it is an out-patient or in-patient treatment for any injuries caused by an accident. There is a maximum amount of claim, depending on the plan offered and the amount of sum assured.
5. Treatment Benefit
If you are hospitalised within a certain period of time because of your accident, you will be reimbursed for your medical expenses, up to a maximum amount according to your policy.
6. Physician Benefit
You will be reimbursed up to a certain amount of cover if you seek alternative treatment for injuries caused by your accident. These treatment could be acupuncture, bone-setting, chiropractic therapy, osteopathy, or physiotherapy.
7. Weekly Indemnity
If you sustain temporary total disability due to an accident and are unable to perform your normal routine, you will receive an amount every week up to a certain period of time as stated in your policy.
8. Accident Hospital Income
If you are hospitalised because of an accident, you will receive a daily income up to a certain period after the accident as stated in your policy.
9. Home Care
If you are hospitalised as a result of an accident, you will receive an amount in one cash payment for each accident.
10. Public Conveyance Benefit
If your policy provides this benefit, you will receive a certain amount of cover if an injury or death occurs as a result of an accident while you are travelling in any public transportation.
11. Broken Bones and Burns
If you suffer broken bones or burns as a result of an accident, you will receive a percentage of the amount of cover, depending on the severity of the injury.
Of course, there is not one policy that has all the benefits. You can always consult your insurance agent on the benefits that you wish to receive for the policy that you purchase. For some people, they may not see it necessary to purchase one with the benefits of broken bones and burns cover. Others, may prefer accident hospital income to weekly indemnity. However, if your agent is creative in nature, he/she would be able to package a few policies in such a way that they cover as comprehensive as possible and provide most, if not all the benefits.
Having said that, your needs (and budget) should be the main concern of your agent. He/she should be able to whip up a concoction that best caters your needs.