Life Insurance

Why you NEED a personal accident policy Rediff

25.04.10

Teena Jain Kaushal examines why you need to get personal accident policy, now.

C hances are high that you already have some insurance policies -- life, health and motor -- and feel absolutely protected. You may have hardly felt the need for a personal accident policy as you were told that existing plans already cover all your risks.

But, perhaps, you are making a hurried decision. Is your life cover (with a rider) as comprehensive as a standalone personal accident policy?

A standalone personal accident policy covers you at nominal premium rates compared to a life insurance policy. Also, the former scores in terms of coverage, including loss of income and minor injuries.

A personal accident policy is recommended to individuals not only to protect their families in the event of accidental death (which life insurance already does), but also to cover disablement, leading to loss of earning capacity, at competitive premium rates.

"It is all the more important for those who have taken loans (mortgage loan, vehicle loan, personal loan, etc.) to take the personal accident cover because this would offer protection towards repayment of outstanding balances at the time of any accident affecting the repayment capabilities," says Ajay Bimbhet, managing director, Royal Sundaram Alliance Insurance.

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