What is Accidental Death Benefit Rider? | Niva Bupa

A personal accident insurance policy, also known as accident death benefit plan, is a fixed-benefit insurance, which takes the financial pain of an accident away from your family.  Whether it is an accident resulting in prolonged hospitalization, or a major accident resulting in fatality, a personal accident insurance policy will provide you the necessary coverage. It also has a wide slew of other benefits, including coverage of temporary or permanent disability and paying for your child’s educational expenses in sync with the policy terms. Before knowing more about accident insurance, you must keep in mind that there are multiple benefits of health insurance plans. It will protect you from an unforeseen medical emergency, besides providing financial coverage for a wide array of medical expenses. You can choose from a range of health insurance plans such as individual health insurance plans and family health plans. Alongside, there are additional plans for specific needs, like accident insurance and critical illnesses insurance.

Why should you invest in an Accidental Death Benefit Plan?

If you work in a potentially hazardous environment, like working with heavy machinery, or drive long distances for work purposes, you should invest in this policy.

Here, you must consider the staggering statistics of accidents in India: according to National Crime Records Bureau (NCRB) data for 2019, there were a total of around 4.37 lakh road accidents in India, resulting in more than 1.54 lakh fatalities. While 38% of the road accident victims were riding two-wheelers, 13.7% were driving cars. There were over 4.39 lakh people injured because of the accidents, as per the data. Similarly, in 2018 there more than 1.52 lakh deaths in road accidents. Amidst such grim statistics, it becomes imperative for you to protect your loved ones from the irreversible loss of life resulting from an accident. Besides, medical inflation has resulted in rising hospital expenses, which can result in huge financial losses in the case of being hospitalized due to an injury. An accident insurance rider will not only provide the sum insured, in the case of your untimely demise, but will also pay out the sum assured in case of temporary or permanent disability.

Benefits of Personal Accident Insurance Policy

Here is a look at the key benefits of an accident insurance policy:

1. Accidental Death Benefit

In the case of the policyholder’s death due to accident, the accident insurance rider will provide 100% of the sum assured. Typically, an accidental death is the demise of the policyholder - within 180 days - after sustaining a bodily injury directly and solely from an accident. The accident must be a sudden and unforeseen event caused by external, violent and visible means.

2. Funeral Expenses

The accidental death benefit rider provides for the funeral expenses of the policyholder.

3. Child Education Benefits

The cost of your child’s education can be taken care of, in the case of your accidental death or permanent disability. Usually, insurance companies provide a fixed sum for that which is defined in the policy terms.

4. Temporary Complete Disability

Depending on the terms of the policy, you will receive a percentage of the sum insured, for a pre-decided number of weeks.

5. Permanent Complete Disability

You can receive an amount, which can be higher than the sum insured - as much as up to 125% in case of permanent disability arising out of the accident.

6. Permanent Partial Disability

You can receive up to 100% of the sum insured in such a case.

7. Worldwide Coverage

Niva Bupa provides cover for accident hospitalization coverage, while you are travelling abroad. You must check policy terms for more details.

8. Affordable Health Insurance Premium

You can avail a high-value personal accident insurance policy at affordable health insurance premium payments. 

9. Family Combination Applicable

Along with yourself, you can extend the coverage to your family-members. Usually, two adults and two children can also be covered as part of a single plan.

Exclusions of Accident Insurance Rider

The accidental death benefit rider will not provide coverage in the case of the accident being caused by self-inflicted injury, suicide, drug/alcohol overdose, war, riots, natural disaster etc. You must also remember accidents arising out of participation in adventure sports, like mountaineering, rock climbing, scuba diving etc. are also not covered. Also, the benefits of this policy don’t cover those employed in high risk professions like armed force, police, paramilitary, aviation among others. Specialised plans cover these individuals, mostly offered by govt bodies.

Conclusion:

Thus, you can always remain prepared for an unplanned accident by availing a personal accident insurance policy. With manifold benefits, this plan will ensure complete peace of mind. So, don’t wait for disaster to strike. Instead, plan for an unforeseen event by buying a robust health insurance plan. Invest in an accidental death benefit plan today!