In India, motorcycles are one of the most used modes of transportation. Despite its popularity, it offers several hazards to both the rider and the pillion. According to the Indian Motor Vehicles Act of 1988, all motorcycles must carry third-party insurance. Third-party insurance provides the bare minimum of protection. As a result, it is prudent to acquire both a comprehensive health insurance plan and a personal accident policy. This is an excellent combo that provides total protection. In the event of an accident, the health insurance policy will cover hospitalization and medical expenditures. In the event of death, the Personal Accident Policy will reimburse the nominee on the dead policyholder’s behalf.
The premium for a Personal Accident policy is decided by the occupation. In general, exposure to unintentional risk is the same at home as at work. However, depending on the nature of the work, the risk connected with the career may vary. A person working as an Accountant, for example, is less vulnerable to risk than a civil engineer or supervisor working on a construction site.
Let’s Take a Look at the Advantages of Personal Accident Policy
Accidental Death Cover – In the event of the policyholder’s death in a motorcycle accident, the accidental death insurance pays out 100 percent of the total sum assured to the policyholder’s family. This coverage protects the loved ones of the dead policyholder financially.
Disability/Partial Disability Compensation – Many times, injuries sustained in a motorcycle accident can leave a person with a lifelong scar on their life. A temporary or partial/permanent impairment would have a negative influence on the policyholder’s earning capacity. In the event of permanent complete disability, this policy pays out 100 percent of the capital sum insured. Up to a specific extent, temporary and permanent partial disabilities are covered.
Cash Benefit – Personal Accident Policy also includes a daily cash allowance to help with day-to-day healthcare expenses. This amount is available for a maximum of 50 days of hospitalization.
Claims Assistance – Many insurance companies provide roadside assistance as well as a specialized helpdesk for claim-related issues that is available 24 hours a day, seven days a week. This allows for a quick and painless claims process.
Exclusions under Personal Accident Policy
The following instances are not covered by personal accident policy:
- An accident caused by drunk driving/driving while intoxicated/under the influence of narcotic substances
- An accident caused by a breach of the law/traffic rules
- Accident caused by the policyholder’s intentional purpose
How Much Personal Accident Policy Should One Opt For?
All adults, including housewives, should get a Personal Accident policy. As soon as one begins earning, he or she must purchase PA insurance. This coverage should effectively cover young drivers and frequent travelers.
A personal accident insurance policy should preferably be 100 to 120 times your monthly wage.
The price and coverage are also affected by the city in which you live, the kind of your work, and the risk associated with your job. If you work in a high-risk job, the quantity of coverage will be determined by insurance company standards, but a rough figure might be 40-50 times your monthly salary.
As an example, if you’re monthly pay is Rs 40,000, your accident policy should be greater than Rs 40 lakhs. In your absence, your family can invest Rs 40 lakhs (guaranteed sum) in any annuity-type instrument to generate interest of about Rs 28,000-30,000 per month to compensate for your income loss.