One of the primary reasons for this is a lack of understanding among investors, as well as a lack of interest among insurance brokers in offering pure accidental insurance products.
Accidental Insurance Policy:
Despite the prevalence of life insurance and medical insurance plans, the adoption of accidental insurance plans remains significantly low in India. Several factors contribute to this trend. One primary reason is the lack of awareness among potential policyholders, coupled with insurance agents' reduced enthusiasm in promoting pure accidental insurance plans. The relatively low commission associated with these plans, as compared to life insurance or medical/health insurance plans, discourages agents from actively selling accidental insurance policies.
Furthermore, many individuals believe that their existing medical or health insurance plans already cover a significant portion of their potential medical expenses. Consequently, there is a diminished incentive for people to consider purchasing a separate pure accidental insurance plan. Unfortunately, insurers themselves often fail to educate the public about the importance and benefits of having a dedicated accidental insurance policy.
In summary, the scarcity of accidental insurance plan holders in India can be attributed to a combination of factors, including the lack of awareness among investors and insurance agents' preference for plans with higher commissions. Additionally, the perception that existing medical or health insurance plans already provide adequate coverage for accidental events further reduces the demand for pure accidental insurance policies. Insurers should strive to raise awareness and highlight the value of having a dedicated accidental insurance plan to address this issue.
The top five reasons why a pure accidental insurance plan is a significant investment for individuals:
A pure accidental insurance plan offers the advantage of claiming compensation for different types of disabilities that are not covered by medical insurance or life insurance policies. This ensures that policyholders receive financial support specifically tailored to address the challenges they may face due to disability.
Typically, individuals tend to overlook pure accidental insurance plans since hospitalization expenses following an accident are already covered by their medical or health insurance plans. However, it is essential to consider scenarios where the hospital bill exceeds the limit of their existing health insurance plan. In such circumstances, an accidental insurance policy proves invaluable as it provides additional coverage to bridge the financial gap and ensure adequate protection.
An accident can result in a disability that requires adaptations or modifications to your home and vehicle. For instance, if you are unable to use your legs after an accident and require a wheelchair for mobility, adjustments to your living space and vehicle become necessary. In such circumstances, having a pure accidental insurance plan proves beneficial as it covers the expenses associated with these home and vehicle alterations. This ensures that individuals with disabilities have the necessary support to make their living environment accessible and convenient.
Family Transportation during Hospitalization:
Following an accident, it is not always possible for an individual to be hospitalized in a facility located within close proximity to their home. The choice of the hospital depends on various factors, including the accident's location, type, and the hospital's suitability for the specific situation. As a result, the family members of the policyholder may be unable to select the hospital where the policyholder will be admitted, especially immediately after the accident.
In such cases, family members often have to commute long distances, incurring significant transportation expenses. However, under a pure accidental insurance plan, these expenses can be claimed. This coverage ensures that the financial burden of transportation costs is alleviated, providing support to the policyholder's family during the hospitalization period.
In the unfortunate event that the policyholder does not survive the accident, the family members are entitled to claim the death cover provided by a pure accidental insurance plan. This claim is separate from the death cover available under their life insurance plan.
Considering these compelling reasons, it becomes evident that pure accidental insurance is an essential addition to anyone's investment portfolio. It offers comprehensive coverage for disabilities, compensates for hospitalization expenses beyond the limits of existing health insurance, facilitates home and vehicle adaptations, covers family transportation costs during hospitalization, and provides a death claim benefit. These factors collectively emphasize the importance of including pure accidental insurance as a crucial component of one's overall financial strategy.
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