Here are some hard hitting statistics from the Road Accidents in India, 2015 report published by the Ministry of Road Transport and Highways:
 

• A total number of 5,00,279 persons were injured in road accidents in our country. Out of which 1,43,133 individuals were killed.
• About 54.1 % of all persons killed in road accidents in 2015 are in the age group of 15 to 34 years.
• 1,374 accidents and 400 deaths take place every day on Indian roads which further translates into 57 accidents and loss of 17 lives on an average every hour in our country.
• Drivers’ fault accounted for 77.1% of total road accidents.

The king of insurance policies- Personal Accident Insurance is a true blue-blood insurance policy that covers you best during real life unforeseen events, an accident.  Here's...

A Case Study on Personal Accident Insurance

Mr Kalpesh Shah, 27 years old, recently took over as a Project Manager with a leading financial services company. The opportunity offered Kalpesh financial security and career growth, something he had been looking for since the last 3 years. He was enthusiastic about making a mark in his new role.

But life took a 180 degree turn on New Year’s Eve.

Kalpesh was hit by a drunk driver. He was left unconscious as the driver ran over his legs making him permanently disabled. Medical help arrived late and Kalpesh was devastated when the doctors delivered the news—“Son, we are sorry, but you won’t be able to walk again. The accident has made you permanently disabled”.

Kalpesh couldn’t believe it and he saw his life and career grinding to a standstill. The thought of being permanently dependent, both physically and financially, on his loved ones made him cringe. That night he cried like a baby.

To make matters worse, he did not have an insurance policy that could cover his immobile condition. The life insurance policy that he had purchased covered him from the risk of death, while the health insurance policy covered him from the risk of medical emergencies. None of those policies were suited to help him. He felt miserable and helpless!

You probably sympathise with Kalpesh. But do you own a personal accident insurance policy? Probably not! “Yeh mere saath nahi hoga” (this won’t happen with me) is the quick reply when quizzed about owning a personal accidental policy.

Kalpesh isn’t the only person who has made this mistake. Most Indians, ignore the importance of purchasing an adequate personal accidental insurance policy.

A Personal Accident Insurance...

Refers to an insurance that offers compensation in case of death, bodily injuries, total/ partial disability or mutilation resulting from an accident caused by violent, visible and external means. It covers rail, road and air accident, injury due to collision or fall, burns, drowning etc. Personal Accident Insurance is cheap (The premium for Apollo Munich’s Personal Accident Premium Plan for a sum insured of Rs 1 crore for an accountant earning Rs 10 lakhs as salary is Rs 12,788 with taxes!), does not require medical tests and offer significant benefits like worldwide protection, child education support, legal and funeral fees etc.

Speaking of Statistics, look closer for a clearer picture…

As per the above report, the total number of road accidents increased by 2.5 per cent from 4,89,400 in 2014 to 5,01,423 in 2015 while the total number of persons killed increased by 4.6 per cent from 1,39,671 in 2014 to 1,46,133 in 2015. A comparative scenario of 2014 and 2015 is depicted in Table below:
 

Road Accident Parameters: 2014 and 2015
Parameter	2014	2015	% change over previous year
Total accidents in the country	4,89,400	5,01,423	2.5
Total number of persons killed in the country	1,39,671	1,46,133	4.6
Total number of persons injured in the country	4,93,474	5,00,279	1.4
Accident Severity*	28.5	29.1	2.1
* No. of persons killed per 100 accidents

(Source: Road Accidents in India, 2015 report by Ministry of Road Transport and Highways)

Moreover, the analysis of causal factors reveals that drivers' fault (77.1%) is single most important factor responsible for accidents, followed by fault of drivers of other vehicles, defects in motor vehicles, defect in road conditions and faults of pedestrians.
 
(Source: Road Accidents in India, 2015 by Ministry of Road Transport and Highways)
What should you learn from these statistics? BUY a personal accident insurance immediately.

Irrespective of one's age, occupation, and health, it is wise to purchase a personal accidental insurance, especially if you travel excessively for work. Unlike life insurance, the premium for personal accident insurance will depend upon your occupation rather than your age.

How much Accidental Insurance coverage is enough?

It is wise to own a personal accident insurance for a sum insured which is 10 times your gross annual income. E.g.: In the case study, say Kalpesh's gross annual income is Rs 10 lakh; he should ideally purchase a personal accident insurance for a sum insured of Rs 1 crore. This ensures that all possible eventualities, such as loan repayment, children's education and marriage, regular earnings for the spouse are taken care of in the event of any lifelong impairment or even demise.

Below, we have shared some of the personal accident insurance plans.
 

Insurer	Plan Name	Hospitalisation	Family Cover	Ambulance	Permanent Total Disability (Pth)	Permanent Partial Disability (PPD)
Max Bupa Health Insurance	Health Assurance- Personal Accident	Hospi-Cash provided	covers up to 2 children	Not covered	covered up to 125% of Sum Assured	covered from 25% to 100% of Sum Assured
Bharti Axa General Insurance	Personal Accident Superior	Hospi-Cash of Rs 1,000 per day for 30 lakh cover & up to 20% of Sum assured for 20 lakh and 30 lakh cover	covers individually	Not covered	covered for 1.5 times of Sum Assured	covered from 2% to 75% of the Sum Assured
HDFC Ergo General Insurance	Individual Personal Accident (IPA)	Hospi-Cash provided	covers individually	Not covered	covered up to 100% of Sum Assured	Not covered
Religare Health Insurance	Secure 1 - Personal Accident	Covered in Add-on Rider	covers individually	Not covered	covered from 50% to 100% of the Sum Assured	covered from 2% to 75% of the Sum Assured
	Secure 3 - Personal Accident	Covered in Add-on Rider	covers individually	Not covered	covered from 50% to 100% of the Sum Assured	covered from 2% to 75% of the Sum Assured
Apollo Munich Health Insurance	IPA-Standard	Not Covered	covers up to 6 members	Rs 2,000	covered from 50% to 100% of the Sum Assured	covered from 2% to 75% of the Sum Assured
	IPA-Premium	Not Covered	covers up to 6 members	Rs 2,000	covered from 50% to 100% of the Sum Assured	covered from 2% to 75% of the Sum Assured
The New India Assurance Co. Ltd	E-Personal Accident	Hospi-Cash of Rs 200 per day for 50 days	Covers individually	Not covered	Up to 100% of Sum Assured	Up to 50% of the Sum Assured
Liberty Videocon General Insurance Co. Ltd	Group Personal Accident	Hospi-Cash of Rs.500 per day for 30 days	Covers individually	Not covered	Up to 100% of Sum Assured	covered from 2% to 70% of the Sum Assured

Note: The table is for illustration purpose only
(Source: policybazaar.com)
Choose well…

A personal accident insurance is primarily required to cover disability (permanent or partial) as it may impact your earning potential. In fact, the disability will add an extra burden to the monthly household expenses. You may require domiciliary treatment (treatment at home), physiotherapy sessions, and/or even home-nursing support. No health insurance cover / life insurance cover will cover such expenses beyond a point.

Make sure to read the policy document carefully before signing on the dotted line. Do not indulge the company's marketing gimmicks like children's education benefit or reimbursement of medical expenses etc. The children's education benefit is too little to make any significant impact and the medical expenses can be covered by your health insurance too.

It is ideal to own a separate Personal Accident Insurance policy. A number of insurance plans allow you to purchase an accidental death benefit and accidental disability rider along with your term plan. You shouldn't be much bothered about accidental death benefit if you already have adequate life insurance. However, it is important to note that, such riders only cover permanent total disability. Permanent or partial disability most of the times isn't covered.

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