Context : Rising Accident Rates in India (2023-24)
- Road accidents: ~1.73 lakh deaths, 4.63 lakh injuries in 2023.
- Home accidents:
- Falls: 30%
- Burns: 20%
- Accidental poisoning: 15%
- Drowning (mainly children): 10%
- Workplace accidents (2024): 400+ deaths, 850+ serious injuries.
- Adventure sports risks: Activities like trekking, rafting, and paragliding contribute to rising accident numbers.
Relevance : GS 2(Health )
Why Personal Accident Insurance is Vital
- Provides a financial safety net against sudden accidents.
- Affordability: Cheaper than health or life insurance; accessible to all income groups.
Key Benefits of Personal Accident Insurance
- Accidental death/permanent disability cover: Fixed payout ensures financial stability for dependents.
- Support for dependents: Education and marriage funds for children, widows, and parents.
- Medical expense coverage:
- Hospitalisation costs covered.
- Lump sum benefits for burns, broken bones, or coma.
- Recovery support:
- Coverage for home/vehicle modifications.
- Expenses for prostheses, wheelchairs, crutches.
- Income protection: Payouts during recovery to offset lost wages.
- Debt coverage: Some policies cover outstanding loans if the policyholder is a breadwinner.
- Emergency services: Air ambulance for remote-area accidents.
Exclusions & Premium Factors
- Exclusions:
- Self-inflicted injuries, suicide attempts.
- Accidents under alcohol/drug influence.
- Injuries from criminal activities or high-risk sports.
- Pre-existing conditions/disabilities.
- Premium determination:
- High-risk jobs (e.g., miners, factory workers) attract higher premiums than office jobs.
Bottom Line:
- Personal accident insurance is an affordable, crucial safeguard against unexpected financial burdens arising from accidents across various environments (road, home, work, or adventure).
- Understanding coverage details and exclusions is vital for making informed choices.
