Why you need accident insurance

There are few takers for accident insurance, even though it comes relatively cheap. Given the spate of accidents, people are well advised to not ignore it.

What it covers: Any accident—slipping on the stairs, falling, breaking an ankle during a football match, receiving burns while bursting firecrackers on Diwali, or getting electrocuted by a faulty appliance. A comprehensive plan covers the policyholder against all such perils.

Rider or standalone policy: Most riders with life insurance policies pro- vide only a basic accidental death and permanent disability protection. On the other hand, a standalone comprehensive policy covers various kinds of losses, including income loss, temporary disablement and hospitalisation.Also, the cover offered by a rider is linked to the base sum assured and cannot exceed a certain level. Riders also cost more than standalone policies.


How and where to buy: Some insurance agents tag it with a life or car insurance policy. Banks sell it when you open an account or get a credit card. PSU insurance companies offer the best value.

(This article is a condensed version of one originally published on May 5, 2014, and may contain chronological references based on that date.)