Insurance uncovered

Kapil (name changed), Mumbai

Personal accident policies are cheaper than even term life insurance. They cover accidental death and partial/total disablement, following an accident that may impair your ability to work.

Not sure why you are specifically looking for personal accident covers, but note that if you are engaged in hazardous occupations such as mining, making of explosives or electrical installations, you may not be able to get a personal accident policy.

Insurance companies that offer personal accident policies also have some standard list of exclusions. These include accidents resulting from suicide, attempted suicide and participation in criminal activities such as riot or civil commotion. Accidents that happen when one is under the influence of alcohol or drugs will also be excluded from coverage. Also, treatment for per-existing injuries will also not be covered.

In case you participate in an adventure sport and you were not trained for it, the insurance company will not be liable to pay for damage/loss of life. Here, it is advisable that you speak to the insurer and get a policy custom-designed for you.

Religare Health, HDFC ERGO, Apollo Munich Health and Max Bupa Health are some insurers offering personal accident policies. For a cover of ₹10 lakh, the premium will be ₹900-1,000 a year for a male of 35 years.

You can also look for life insurance policies that offer accident cover as riders. You will be able to get a higher SA then what a standalone accident policy offers.

The maximum cover one can get in standalone personal accident covers is about ₹20-30 lakh.

When you choose a rider cover with a life insurance policy, make sure it covers ‘disability’ too rather than just offering accidental death benefit. Also, some of these rider covers may not cover partial disability. So read the fine-prints carefully. You have to also note here that when the term of your life policy ends, the rider cover will also end.

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