Skip to main content

Personal Accident Insurance policy

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

 

Imagine that you are the sole breadwinner of your family and you meet with a serious accident. You end up dying or with a disablement which results in a loss of income which can range from a few weeks to several years. What happens to your family in this case?  A term insurance protects your family in case of your death and a health insurance compensates you for hospital expenses. But what happens in case of disablement? This is where a Personal Accident Insurance can help you.

A Personal Accident Insurance covers a person from accidental death and disablement. The disablement include permanent total disablement, permanent partial disablement and temporary total disablement. Personal Accident Insurance policies offer comprehensive cover, which is better than the accidental riders usually available with other forms of insurance.


Policy features:
We have analysed personal accident insurance products of 10 companies on the basis of several parameters, as under:

Coverage and the Sum Assured: Most companies offer policies which cover accidental death and the above mentioned disablement. The Sum Assured is generally dependent on the type of cover you opt for, i.e.: only Accidental Death, or includes one or more types of disablement. Few companies like Bajaj Allianz and Tata AIG take the occupation, age and income into consideration while determining the Sum Assured amount.

Premium: One unique factor about premium calculations under Personal Accident Insurance is that it primarily depends on your occupation and location, and not on age, unlike other insurance policies. This is because your nature of occupation determines the extent of risk you are exposed to. The premium to be paid for such policies is much cheaper than a term policy or health policy. It usually ranges between Rs. 750 and Rs. 1500, depending on the company and additional covers you opt for. Future Generali offers the least premium, while HDFC ERGO charges the highest premium among the players we have compared.

Family Cover: All companies offer coverage for the individual, and an optional cover for his spouse and dependent children. While most companies offer a discount of 10% in premium rates if you take a family cover, Starhealth offers a lower discount of 5%.  HDFC ERGO and ICICI do not offer any discount on family packages.

Death Cover: In case of death due to accident, companies pay 100% of the Sum Assured to the nominee of the insured person.

Permanent Total Disablement: This refers to a permanent total disablement due to accident, which can include loss of 2 limbs (both hands or both feet), one hand and one feet, loss of sight of both eyes or speech or hearing of both ears. Generally companies compensate 100% of the Sum Assured. Some companies like Bajaj Allianz give 125% of the Sum Assured. There are other companies like Apollo Munich and New India Assurance which compensate 50% or 100% of the Sum Assured, depending on the nature of the disablement.

Permanent Partial Disablement: This also refers to permanent disablement, but the disablement is only partial and not complete. Instances of this include loss of one finger, loss of arm, loss of leg, one eye or hearing in one ear. Coverage generally starts from 5% of the Sum Assured and goes upto 100% of the Sum Assured in some cases, depending on the disablement.

Temporary Total Disablement: This covers disablement due to an accident, which may be temporary and total in nature, which affects the insured person’s ability to earn income. The temporary disablement usually will need to be certified by a doctor. The compensation given is in terms of a weekly benefit, and this is given for a period of 100 weeks (104 weeks in some cases). Some companies like National Insurance Company and Royal Sundaram specify limits on the weekly benefits which can be given.

Cumulative Bonus: Similar to health insurance, personal accident insurance policies also offer bonuses on claim free years. For most companies this is 5% per claim free year, subject to a maximum cumulative bonus of 50%. Some companies like Future Generali, Royal Sundaram and Tata AIG have a lower cumulative bonus limit of 25%. HDFC ERGO and ICICI do not offer this bonus. Remember to check the policy document for actual eligibility, as this feature is sometimes not available for death only policies and permanent disablement policies.

Other Benefits: Apart from covering basic benefits of death and disablement, companies offer a variety of other benefits when you take a personal accident insurance. The most common among them is the education fund - the child’s education is sponsored in case of death or permanent disablement of the insured parent. Generally, the limit for this head is Rs. 5000 per child, upto a maximum of 2 children. Some companies also give this as a % of the Sum Assured amount. Note than HDFC ERGO and ICICI do not offer this benefit. The other common benefit offered by most companies is reimbursement of accident medical expenses. This is usually an additional cover, which can be purchased by paying a higher premium. Some companies offer this without charging any additional amount. Other benefits include emergency ambulance benefits, family transportation benefits (expenses of transporting one family member to the hospital where the insured person is admitted), transportation of mortal remains to the residence of the insured person from the accident site, hospital cash allowance if the insured person is admitted in a hospital given on a per day basis. Some companies like Future Generali and Tata AIG also compensate for any modification to be carried out in your vehicle or house as necessitated by a permanent total disablement.

Which policy should you buy and which should be avoided?
Most companies offer similar features on personal accident policies. If you are not keen on the cumulative no-claim bonus amount, you can opt for Future Generali Accident Suraksha, as this policy has a low premium and has more add-on benefits compared to peers. If you are looking for a high Sum Assured, you can consider Tata AIG (Sum Assured upto Rs. 1 crore). But this policy also has a low bonus benefit. If you are looking for a pure death cover, you can consider Apollo Munich Personal Accidental Standard. Similarly, if you are looking at Permanent Total Disablement insurance, Bajaj Allianz Personal Guard is the best choice, as it offers 125% of the Sum Assured. Other policies which can be considered are personal accident policies from National Insurance Company and Starhealth Accident Care.

It is best to avoid personal accident policies from HDFC ERGO and ICICI, as premium is high and benefits are far lesser than other players in the market. Policy from New India Assurance can also be avoided as the accompanying benefits are few. You can also avoid Royal Sundaram Personal Accident Insurance as there are sub-limits in Sum Assured for family members and cumulative bonus is low.

Ideally one should consider Claim Settlement Ratio as well. This date is not available as of now. Kindly check this space later for this update.

For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap FundsInvest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

Surrender ULPPs

  ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments.   Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...
Read more

Sundaram Mutual Fund new plan Sundaram Fixed Term Plan CJ

Sundaram Mutual Fund has announced the launch of a new fund named as Sundaram Fixed Term Plan CJ. The new issue will be closed for subscription on January 30. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available are: 1. HDFC TaxSaver 2. ICICI Prudential Tax Plan 3. DSP BlackRock Tax Saver Fund 4. Birla Sun Life Tax Relief '96 5. Reliance Tax Saver (ELSS) Fund 6. IDFC Tax Advantage (ELSS) Fund 7. SBI Magnum Tax Gain Scheme 1993 8. Sundaram Tax Saver   -...
Read more

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...
Read more

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Read more

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now