Why personal accident insurance is a lifeline Business News & Hub

In 2023, road accidents in India claimed almost 1.73 lakh lives and left 4.63 lakh injured, as per according to data shared by States with the Union government. 

You might think, “I don’t drive, so I’m safe,” or “I’m a careful driver; accidents won’t happen to me.” But recent tragedies like the Jaipur-Ajmer highway fire or the Odisha train disaster remind us how little control we have over such situations.

While road accidents are widely reported and brought out in the public eye, other incidents are just as disruptive. Home accidents, for instance, are a significant concern, with falls constituting about 30% of such incidents, burns making up 20%, accidental poisoning from household chemicals and medications accounting for 15% and drowning, particularly involving young children, making up about 10%. 

Workplaces are even more perilous, with over 400 workers killed and more than 850 seriously injured in 2024 alone across various sectors, including manufacturing, mining, and energy industries. Today extreme sports are considered recreational, but they pose serious risks, with mountain climbing, trekking, rafting, and paragliding contributing to numerous accidents. 

The statistics highlight the pervasive nature of accidents that go beyond road traffic incidents.

Personal accident insurance acts as a financial safety net, protecting you and your loved ones from the economic impact of life’s unpredictable accidents. Let’s explore the standout features of these policies available availabl in the market currently.

Financial support to the family

In the unfortunate event of an accidental death or permanent disabilitieslike loss of limbs or vision, a personal accident policy offers a lifeline by providing a fixed payout to the bereavedaffected family. 

Financial support

This financial support ensures that dependents can maintain their standard of living despite loss of income. Many policies in the marke go a step further by including specific provisions for dependents, such as parents, widows, and children. The provisions often include dedicated education Funds and marriage funds helping to secure their future and offering long-term financial stability for major life events.

Medical benefits

Injuries from mishaps accidents can lead to hospitalisation, burn injuries, amputations, and even comas, placing heavy financial burden. Fortunately, some personal insuranceaccident insurance products offer comprehensive coverage to help alleviate these costs. Beyond covering hospitalisation expenses,The policies also often include unique benefits for injuries resulting from burns or broken bones. Also, Additionally, some policies provide lump sum payouts for coma benefits in cases of permanent neurological damage.

Recovery benefits

Living with disabilities resulting from accidents can be far more challenging. than we often anticipate. Life after an accident often requires significant adjustments, such as modifying homes or personal vehicles to support daily living. Innovative personal accident insurance products not only cover the costs of home and vehicle modifications but also extend to expenses for essential aids like artificial limbs, prostheses, crutches, and wheelchairs. With such comprehensive support, the injured can focus on adapting to new circumstances and recovering better.

Loss of income

Accidents often result in temporary disabilities, cause individuals to miss work and lose income. Thankfully, there are specific covers like Temporary Total Disablement and Loss of Income that to address these challenges. These policies provide fixed payouts during the recovery period, ensuring thatone you can focus on healing without the added stress of financial instability.

Financial liability

When accidents strike breadwinners, the financial stability of families can be severely impacted, often leaving them burdened with outstanding loans. A few comprehensive personal accident insurance products offer specific covers to address this issue. These policies can take care of outstanding loans.s, ensuring that your loved ones are not overwhelmed by financial stress during an already challenging time.

Innovative features

For adventure seekers and those who take the road less travelled, innovative personal accident policies can be lifesavers, covering non-professional activities like trekking through rugged mountains, scuba diving in vibrant coral reefs, or soaring high while paragliding..

Accidents can happen in remote or inaccessible areas where immediate medical attention is crucial. That’s why many policies now include air ambulance services, ensuring timely transfer to the nearest hospital. This can be lifesaving in emergencies, allowing you to embrace your adventurous spirit with confidence.

Exclusions to policy 

While keep in mind while personal accident insurance these policies offer comprehensive coverage, certain scenarios are excluded like self-inflicted injuries or suicide attempts, accidents under the influence of alcohol or drugs, injuries from high-risk sports or criminal activities, pre-existing disabilities or illnesses. 

Understanding these exclusions is crucial to making an informed choice when purchasing a policy.

Who should opt for Personal Accident Insurance?

Personal accident insurance is for everyone—because accidents don’t discriminate based on age, profession, or location. Whether you are a teacher in a bustling city or a construction worker in a remote area, the risks persist.

Occupational risks also influence premiums. For example, miners or factory workers face higher accident probabilities than office employees, leading to different premium rates based on risk categories.

One of the greatest advantages of this personal accident insurance product is its affordability. Compared with health or life insurance, premiums are relatively low, making it accessible to individuals across all income groups. Despite its affordability, the policy offers invaluable benefits that can make a significant difference during crisis. In an unpredictable world, securing personal accident insurance is one of the wisest decisions you can make. It’s a small investment that offers immeasurable peace of mind, ensuring that you and your loved ones are protected against life’s uncertainties.

(The writer is head – health underwriting & claims, Magma General Insurance Ltd. (formerly Magma HDI General Insurance Company Ltd.)