Personal Accident Insurance The insurance that is done to avoid the shock of personal accident is called personal accident insurance. This type of insurance is a type of contract where the insured is obliged to pay compensation to the insured in return for a certain premium in case of accidental death or loss of performance or mental distress or mutilation. This type of insurance is usually for one year.
The Oxford Dictionary of Business states about personal accident insurance, “Personal insurance policy that pays a specified amount of money to the policyholder in the event of the loss of one or more eyes or imbs in any types of accident.” That is to say, the insurance policy which guarantees a certain amount of money for the loss of one or more eyes and limbs of the insured in any accident is called personal accident insurance.
“The Insurance of Dictionary -” Personal accident insurance replaces a part of earned | Personal accident insurance is the insurance that covers a portion of a person’s income due to disability caused by an accidental injury.
From the above discussion and definition, personal accident insurance has the following features:
The subject of personal accident insurance is human life and limbs;
- In this case, a completely unexpected accident is caused by an accident;
- In this case, the amount of compensation for loss of life or any kind of mutilation is mentioned in the contract;
- Funding for treatment is also covered;
- Loss of income due to accident is also covered.
- In case of any vehicle accident, the risk of accident is taken through this policy.
- This type of insurance policy can be taken by anyone between the ages of 18 and 60.
- In such insurance, the premium is determined based on the profession. So in all cases the premium is not equal.
In conclusion, the contract that the insured enters into with the insurer to compensate for the loss caused by the accident is called personal accident insurance.
Through such insurance, the insurer guarantees different types of risk reduction to the insured. In such insurance, if the insured person dies in an accident or is physically injured, his nominee or himself gets financial assistance.