Are you always on the road? It is time to buy personal accident insurance

Are you always on the road? It is time to buy personal accident insurance

At 26, Rajiv was the most prudent person I had ever met. He had a fantastic career graph, with a wonderful wife and two kids on the personal front. Like any other family man, he bought a term insurance to secure his family in his absence. After the birth of his second child, he also bought a comprehensive family floater health insurance. Armed with both these policies, he was confident that his family would always remain safe and secure in case of an emergency.

However, life is unpredictable and takes uneven turns when you least expect. One day while going to the office, his motorcycle collided with a car coming from the other side. The accident left him incapacitated for the next six months. While his health insurance policy took care of hospitalization expenses, he had to dig into his savings to meet household expenses. As he was alive, his term insurance also did not help him. Suddenly, reality struck him hard and made him think, is there anything he could have done to avoid the current situation?

There are many people like Rajiv for whom coverage means taking health and term insurance policies only. While you may bank on your term insurance in case of death and health insurance in case of a medical emergency, you can depend on your personal accident policy in case of any disability.

Why should you go for personal accident insurance?

Indian roads, which record the highest road fatalities in the world, claimed more lives in 2015, with the number of road deaths increased to 1.46 lakh.

As per some government data, 400 people are killed every day in road accidents. Accidents come unannounced, and they affect not only physically, but financially also. In case the breadwinner is involved in the accident, the family’s income may also get affected if he/she is forced to take a break from the work. The situation becomes worse if the policyholder dies in an accident. While injuries can make you disabled temporarily or permanently, they can drain your life’s savings, leaving your family in a tough situation. Hence, for securing your family’s well-being and meeting its day-to-day needs in your absence, it is must to buy a personal accident policy.

While it is difficult to avert accidents, one can buy a personal accident policy to deal with the financial burden of an accident. The policy offers compensation in the event of injuries caused due to accidents.

What it covers

1. Accidental death: In the case of death of the policyholder during the policy tenure, the nominee gets the sum insured as mentioned in the policy document.


2. Permanent total disablement: If due to an accident, the policyholder has a permanent or total loss of limbs, sights or any other disability, he/she will be paid the sum insured.


3. Reimbursement of accidental hospitalization expenses: In the case of a minimum of 24 hours hospitalization following an injury, the policyholder can approach the insurer to compensate for the hospitalization expenses.


4. Accidental hospital daily allowance: Some insurers give a per day allowance for each day of hospitalization to cover expenses like food, transport, etc.


5. Additional features: Along with the traditional benefits, personal accident policies also offer additional benefits like:

• Child education benefits


• Legal and education benefits


• Injury arising due to terrorist activities

How much cover is recommended?

As an accident or disability causes financial losses, therefore, the extent of cover should be able to:

• Maintain the family’s current financial situation


• Deal with financial goals


• Cover expenses, like home treatment, physiotherapy, etc.

Is it affordable to buy a personal accident policy?

Yes, personal accident insurance policies are one of the most affordable insurance coverage available in the market. By paying a small premium amount, you can get comprehensive coverage. Further, unlike other policies, the age of the policyholder doesn’t decide the premium, as it mainly depends on the occupation of the person. It means a young army officer will have to pay high premium rates than a 50-year old teacher.

For the premium calculations, most of the insurers have categorized occupations in the following heads:

How to file a claim?

The claim process is simple and mentioned in the policy document. Here’s the standard process to be followed:

• You or your nominee needs to notify the insurance company immediately or within the stipulated time frame


• Submit the policy documents within a stipulated time frame

In the case of disablement, the insurer would ask for a doctor’s report to find out the extent of disablement.

What to choose a rider or a standalone policy?

Accident cover can be bought both as a rider and a standalone policy. However, most riders offer limited coverage as they cover only the accidental death and permanent disability. On the other hand, a standalone policy offers comprehensive coverage as it includes various types of losses, including partial or temporary disablement and income loss. Further, these policies are comprehensive and can easily be customized by the policyholder.

Some employers also offer group personal accident cover. Usually, the personal accident policy should be at least 5-10 times of your monthly income, but the coverage offered by the corporate policy may not be sufficient. Also, a group plan only covers employees, but individual accident policy coverage can be extended to family members at an affordable premium rate.

Be safe than sorry

It is advised to buy the policy when you are young because the chances of an accident are quite high at that stage of life. Moreover, the unhealthy lifestyle doubles the risk of an accident. Thus, it is good to buy a policy when you are young.

Reliance Nippon Life Insurance by Reliance Capital a Review

Reliance Capital has introduced a new offer on its Reliance Nippon Life Insurance plan. This offer is called as Increasing Money Back Plan.

This is a guaranteed money back plan along with life cover for entire policy period. Reliance Nippon Life Insurance will give you money back on each three years with increasing amount than previous amount. Also lump sum maturity amount at the end of policy term. Premium amount will be fixed for entire policy period. You will also got tax exemption as per Income Tax rules.

Now we will look at the main facilities and benefits of Reliance Nippon Life Insurance plan -

• This is an unique plan which gives you both money back and life cover for entire policy term.


• Payout percentage will increase on every 3 year from 10 percent to 20 percent to 30 percent to 50 percent to 100 percent of base sum assured.


• This plan is available to age 15 to 55 years and starting from minimum sum assured Rs. 1,00,000 or minimum premium of Rs. 18000 per year.


• This policy has an good option for you like you may pay for entire period of policy term or you can stop premium after 7 years , it is totally depend on you.But policy term will be mature after 15 years in both cases.


• There is an option for loan against the policy.You may avail upto 80 percent loan against the surrender value.This will be available in case of emergency.


• In case of unfortunate death of you during the policy term your nominee will get full death benefit. This amount will be 10 times of the annual premium or guaranteed sum assured of the policy on maturity or 105 percent of the total premium paid.


• Also as per Reliance Capital they will provide you a fixed discount on premium depending upon the Sum assured amount chosen by you.

For your easy understand we are giving an example

Mr. Kumar just married at the age of 30 and after his marriage he decided to invest some money on Reliance Nippon Life Insurance. He chosen sum assured of Rs. 2,50,000, premium pay of Rs. 28578 (excluding taxes) for 15 years.

Now look at the conditions-

If Mr. Kumar paid premium for entire 15 years then he will get money back of -

• Rs. 25,000 after 3 Years  . (10% of Sum Assured)


• Rs. 50,000 after 6 Years  . (20% of Sum Assured)


• Rs. 75,000 after 9 Years  . (30% of Sum Assured)


• Rs. 1,25,000 after 12 Years  . (50% of Sum Assured)


• Rs. 2,50,000 after maturity (15 Years) . (100% of Sum Assured)

But unfortunately Mr. Kumar passed after a sudden accident on 11th year of the policy term. Then his wife will receive a lump sum amount of Rs. 3,30,076 as a death benefit. Now calculate it , he paid total 11 nos. premium (Premium of Rs. 28578 /Year) means Rs. 3,14,358 and death benefit amount is Rs. 3,30,076 which is 105 percent of premium paid amount.

Best Insurance Quote for Motorbike

Best Insurance Quote for Motorbike

To find cheap motorcycle insurance, you may request quotes over the phone or on the websites of insurance company that you are interested in.  You can try a comparison site and see if anything on there takes your fancy.

 For cheaper motorcycle insurance, you have several options such are reducing the bolt-on options such as roadside recovery or driver protection or helmet insurance, etc.  Otherwise you could simply reduce the coverage level you apply for and just have third party cover instead of full risk/ fully comprehensive.

 In all cases, the amount of motorcycle insurance is not the first thing to watch.  You need to check the guarantees that are offered by the motorbike or scooter insurance company and choose those that suit you.

 The only mandatory coverage included you must have with your motorcycle or scooter insurance is third party liability insurance.  Third party liability is set into place so that any losses incurred due to damage suffered by third parties resulting from an offence against persons or property in the achievement of which a land motor vehicle, and its trailers, or semi-trailers, is involved, must, to protect such vehicles be covered by insurance guaranteeing that responsibility.

 

 There is optional coverage, which you can choose according to your personal preference and needs, such as warranty damage to the driver/rider, the loan guarantee if the bike is stolen or written off, warranty theft or fire cover, warranty damage to your equipment etc and many more.  Some of these are known as Gap insurance.

 Insurance companies determine their own prices for motorcycle insurance. They are mainly based on the study of what has happened before.  They are collated into statistics which are then turned into probability equations.  The probability of you filing a claim is the safeguarded against by the amount of money they charge you. The insurance company will indeed consider the technical attributes of your bike into the equation, such as the power of your machine, the class of your bike (road, for example) on your type of engine, its current location of parking and its use (that professional or recreational).  The specifics of the motorcycle are sometimes the most important elements in the equation which will be submitted for approval.  This all adds up to the motorcycle driver's penalty, which may be helped or hindered by the date he/she obtained his/her motorcycle license and the age of the motorcycle rider.  Only once all characteristics/elements are considered by the insurance company can they introduce you to the most appropriate price for your motorcycle insurance policy.

 When purchasing your bike or scooter, you can ask about insurance costs.  You can even run a few insurance scenarios online first, so that you will know which bikes have the best insurance rates.  That way you are free to buy the one that will cost you the least in insurance costs in the long run.  You could even offset some of your initial investment on the bike with an eye to the fact you will save more money in the long run.

This is Guest Post by Petar Jorge.He is an article writer for a distinguished set of motorbike websites

For know more about author visit the follow links.

www.motorcycleinsurance.org.uk.