Nirmal Gupta

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

While road accidents are widely reported, 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. 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 in the market currently.

In the unfortunate event of an accidental death or permanent disabilities, a personal accident policy offers a lifeline by providing a fixed payout to the affected family.

Financial support

This ensures dependents can maintain their standard of living despite loss of income. Many policies go a step further by including specific provisions for dependents, such as parents, widows, and children. The provisions often include dedicated education and marriage funds to secure their future.

Medical benefits

Injuries from mishaps can lead to hospitalisation placing heavy financial burden. Fortunately, some insurance products offer comprehensive coverage to help alleviate these costs. The policies often include unique benefits for injuries from burns or broken bones. Also, 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. Life after an accident often requires significant adjustments, such as modifying homes or personal vehicles to support daily living. Innovative 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.

Loss of income

Accidents often cause individuals to miss work and lose income. Thankfully, there are specific covers to address these challenges. These provide fixed payouts during the recovery period, ensuring one 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 insurance products offer specific covers to address this issue. These can take care of outstanding loans.

Innovative features

For adventure seekers and those who take the road less travelled, innovative policies can be lifesavers. 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.

Exclusions to policy

While 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. 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 insurance product is its affordability. Compared with health or life insurance, premiums are relatively low, making it accessible to individuals across all income groups.

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

Published on February 24, 2025