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What is Accident Insurance?

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Accident Insurance
Accident Insurance

Accident insurance is a type of insurance policy that offers financial coverage to individuals who experience injury or death due to an accident. The policy may restrict activities they approve as risky and will not cover negligence or natural disasters.

Most importantly, One of the things that may come uninvited in life is accidents which lead to a significant impact on your finances; therefore the best option is to protect yourself and your family from such unpredictable experiences through accident insurance coverage.

This type of insurance is a good option for people who lack proper healthcare coverage, to ensure they have access to medical treatment in the occurrence of accidents. Secondly, is for families who may be exposed to financial insecurity with the loss of the sole breadwinner.

So let’s get into detail on the vital information you need  to access the best plan 

3 different types of accident insurance

Travel accident insurance policies: This must be purchased before your trip as it covers unpredictable accidents and events that may occur during your travels.

Car accident insurance: Just like the name implies, is acquired by drivers to cover themselves and others in the event of an accident with their vehicle.

Customizable insurance plans: Specifically for people who work in a particular firm. This policy is considered expensive due to the higher company risk the individual may be exposed to.

The need for personal accident insurance.

Personal accident insurance has many benefits that include;

Family security and peace of mind: You will have family financial coverage in the case of any accidental occurrence. For example, the insurance company pays 100% compensation regarding a death situation which would go a long way to relieve the family of financial challenge with peace of mind over funding of any liability.

A straightforward claim procedure: Without a verified claim by the insurance company, there won’t be a payout. Therefore, one of the vital areas most insurance look out for is the claim process. So in the case of personal accident insurance, a form is submitted either online or offline and you get your payout once approved. This strategy automatically simplifies the process by minimizing protocols and requirements.

Worldwide coverage: It’s a worldwide coverage plan with no geographical limitations, unlike most insurance plans with limitations on getting compensation outside the country.

In 2018, there was a rise of 1.68% in the number of accidents reported. India supports over 1200 accidents occurrence each day, while the Ministry of Road Transport and Highways in 2017 reported 4.64lkh accidents with nearly 1.47lkh individuals lost from road accidents.

This is an alarming statistic that clearly states the need for personal accident insurance. That said; let’s explore the two categories for best recommendations.

Individual Personal accident insurance: It covers disabilities resulting from accidents, loss of body parts, or accidental death of an individual who is covered by the policy.

Group personal accident insurance: Typically for business owners and organizations who purchase group personal accident insurance in other to cover their employees. The insurance company may offer them a discount on premiums depending on the number of their employees. As a result, assures financial safety to the employees in the event of any accident occurrence in the workplace.

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How to choose the best accident insurance plan

Understand the company’s reputation before purchasing a policy, as some companies cover more than others while some could have complicated payout procedures which would automatically affect individuals with urgent need of coverage for immediate expenses.

While considering accident insurance, ask about premiums and what types of accidents and events are covered. For a proper understanding of a particular policy you might choose, it’s advisable to consult an insurance agent before finalizing your options.

Conclusion

In conclusion, most people who ignore an accident insurance policy may not have properly understood the need for it. As previously mentioned, you may need to consider the security of your family perhaps if an unpredictable situation such as an accident occurs. Especially in the case of death or disability, the family members through this policy could meet some expenses with the cover. So, to avoid any financial distress or burden, you must consider investing in accident insurance.