Disadvantages of an Accident Insurance Policy
- Cause of death. Accident life insurance coverage only pays out if your death can be directly attributed to an accident. If you were to suffer a heart attack when driving, the policy won't pay out.
- High risk hobbies and activities. Some policies don't cover accidents that occur due to the participation in high risk activities, such as bungee jumping, hang gliding and rock climbing. Always check the terms and conditions if you intend to participate in these activities.
- Personal accountability. If you die in an accident when intoxicated, on drugs or breaking the law, your accidental death life insurance policy won't pay out.
- Time frame. Most policies specifically state that your death or dismemberment must occur within 3 months of the accident taking place.
Advantages of Accident Life Insurance
- Lump sum payment. If you die in an accident, a substantial sum of money will be paid to your estate. You'll also receive a "scheduled" payment if you lose a limb or your eyesight.
- Low premium. This additional cover can be taken out for about the third of the cost of level term cover. For example, you're able to get £120,000 of accident insurance cover for less than £10.
- Rider vs standalone policy. Although it may be worthwhile to take out additional coverage as a standalone policy, many level term policies add twice the cover for accidents.
- No medical checks. Provided that you fall within a specific age range, you're guaranteed to be accepted without undergoing a medical examination.
- Peace-of-mind. Families tend to feel more secure when they have the proper coverage in place.
Best accident insurance providers in India are:- ICICI Lombard General Insurance Co. Ltd.
- Star Health & Allied Insurance Company Limited
- The New India Assurance Co. Ltd
- HDFC ERGO General Insurance Co. Ltd
- The Oriental Insurance Co. Ltd.
- United India Insurance Co. Ltd
- Cholamandalam MS General Insurance Co. Ltd.
- Apollo DKV Insurance Company Limited
- IFFCO TOKIO General Insurance Co. Ltd.
- TATA AIG General Insurance Co. Ltd.
- Reliance General Insurance Co. Ltd.
- National Insurance Co. Ltd.
- Bajaj Allianz General Insurance Co. Ltd.
- Royal Sundaram Alliance Insurance Co. Ltd.