Your Accident Insurance Policy and the Fine Print

Most of us must already have an accident insurance policy. We feel safer just knowing that we are protected by an insurance policy, without actually reading the policy documents. But how covered are we really? Here’s what the fine print covers and reasons you should read it.

Why Accident Insurance is Needed

Accidents are a major cause of death every year. There is a higher chance that a person suffers permanent disability in an accident. That is the reason why having an accident insurance policy is important.

Accidents can happen any time , anywhere, not just while you are on road. It can happen at home or office, or a restaurant, you never know. That is why accident insurance is necessary over and above your car insurance or travel insurance. This can help provide protection to you and your family in the times of crisis. At least, you will be relieved of the financial burden in the difficult times.

Types of Accident Insurance

Various types of accident policies are available that will cover different types of accidents and provide different benefits.
  • Accidental Death: In this plan, in case you die in an accident or if the injury in an accident results in death, the next of the kin, that is your nominee will receive death benefits.
  • Air Travel Accident: This will give protection in case you die in an air crash. To be eligible for the claim, you should have traveled in a commercial flight. The flight should have been on the scheduled time and you should have paid for your ticket. Many credit card companies offer air travel insurance if you purchase your tickets on your credit card.
The Fine Print

Most insurance policies have certain conditions outlined in the policy documents as to what you are supposed to do in the event of the accident, to be eligible for the claim.
  • You should report about an accidental injury or death with in 5 working days of the accident.
  • The onus of providing evidence that the injury suffered is due to the accident lies on the claimant.
  • In case the person was under the influence of alcohol or drugs, the insurance company is not liable to pay.
If you did not observe proper safety rules, then again, the insurance company will not pay. For example, you ran a traffic signal or did not adhere to the speed limit at the time of accident or were not wearing a seat belt when the accident occurred, then you or your family will not get any benefit.
Certain sports like scuba diving, bungee jumping, car racing are not included in the insurance policy. Thus if an accident occurs while you are engaged in any of the above activities then you won’t receive any benefits.

It is extremely important, that you read the fine print of the insurance documents properly, so there will be no surprises later on.
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