MAM
Personal Accident Insurance: Coverage, Benefits & Costs
In order to create a solid financial safety net, the initial step should be obtaining satisfactory health coverage, usually through a health insurance policy. However, many individuals fail to see the risk of being involved in an accident that causes injury or death, which may not be something you plan for or expect to happen. personal accident insurance fills this gap. Health Insurance pays for all medical expenses associated with your injury; however, a Personal Accident Insurance policy allows for immediate cash payments when you are injured in an automobile accident or disabled as a result of your accident. Below we will provide you with a clearer understanding of what Personal Accident Insurance covers, how it is beneficial in day-to-day life, and the average annual premium for this type of policy.
What Personal Accident Insurance IS and is NOT
A Personal Accident Insurance policy is similar to other types of policies such as term life, but in addition to paying out an amount based on the insured’s age or date of death, it will also pay out an equivalent periodic benefit based on the type of accident. This type of policy does not replace Health Insurance, but is a supplement to it. You can think of it this way: Health Insurance covers medical expenses after an accident; Personal Accident Insurance provides money to you, the insured, in order to pay for non-medical expenses associated with the accident.
What Does It Actually Cover?
There are four main categories of Personal Accident Insurance Coverage:
- Accidental Death: The insurance policy pays the amount insured in the event that you die from an accident to the insured’s family or beneficiaries. The funds can replace lost wages and help the family pay for sudden expenses.
- Permanent Total Disability: If you are injured in an accident that results in a Permanent Total Disability (that is, losing both eyes or the use of both legs), the insurance policy pays 100% of the amount Insured. Those funds can support the individual with living and long-term care adjustments.
- Permanent Partial Disability: A Permanent Partial Disability results from an accident but leaves you with a serious injury (for example, the loss of one hand or the use of one eye). The insurance pays a set percentage of the amount insured (typically 50-75%). This policy can help replace lost wages and make necessary adjustments in the event of a Partial Permanent Disability.
- Temporary Total Disability: Some insurance policies provide weekly/monthly payments for a specified period to an insured if he/she becomes temporarily disabled and cannot work as a result of their accident. This will provide a bridge of income while one is recovering.
Additional Benefits
Most policy holders will be able to purchase a wide variety of add-ons for their personal accident insurance.
Hospital Cash Allowance: The insured is paid a set dollar amount on either a daily OR weekly basis for every day spent in the hospital.
Ambulance Cover: Covers emergency transport expenses incurred while being transported to/from the hospital.
Fracture or Burn Pay-Outs: Fixed dollar payment for fractures/burns, regardless of existence of other claims.
Education Support: Education grants may be available for children in the event of an accidental death or debilitating injury.
Worldwide Insurance: Protects against accidental injury or death 24/7 and travels with the policy holder anywhere in the world.
How Much Does It Cost?
One of the biggest advantages of personal accident insurance is that it is relatively inexpensive compared to the amount of coverage provided. The following factors influence the pricing structure for personal accident insurance:
Level of Coverage: Premiums are based on the total coverage amount; the higher the sum insured, the higher the rate of premium. As a rule of thumb, it is recommended that you have personal accident insurance with a coverage amount of 5 to 10 times your annual salary.
Nature of Your Employment: If you work in an occupation that is considered hazardous or risky (construction workers, police officers), your premium may be higher than someone in an office-based position.
Add-Ons: There are optional add-ons available (adventure sports coverage), which will increase the premium marginally.
Conclusion
Personal Accident Insurance should not be considered an unimportant product because it is a very affordable option available to consumers. It can help protect you from the financial injury that occurs as a result of an accident for a very small amount of money each year. Although it is something most people would rather not utilize, having a Personal Accident Policy will allow you to better prepare for an accident and provide you and your family the ability to recover rather than worrying about how you are going to pay the bills after an accident. If you currently have health insurance and have not yet purchased a Personal Accident policy, please take the time to read up on the benefits and be sure to purchase the coverage. It can be one of the best investments you make in achieving true financial security.
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Reserve Bank of India cancels Paytm Payments Bank licence
Central bank cites compliance failures; curbs tighten as wind-up looms
MUMBAI: India’s banking watchdog delivered its sharpest blow yet to Paytm Payments Bank, cancelling its licence and effectively ending its ability to operate as a bank under the law.
The Reserve Bank of India said the entity can no longer conduct banking business under the Banking Regulation Act, citing concerns that its affairs were not being run in the interest of depositors or the public and that it had failed to meet licence conditions.
The move escalates a crackdown that has been building for months. The bank had already been barred from onboarding new customers since March 11, 2022, and later faced restrictions on deposits, credit and wallet top-ups. In January 2024, the central bank ordered it to stop accepting fresh deposits, pointing to persistent non-compliance, including lapses in customer due diligence, use of funds and technology systems.
Operationally, the bank is now on a tight leash. It may process withdrawals of existing deposits and facilitate loan referrals through banking correspondents, but it cannot take fresh deposits.
The central bank said it would apply to the high court to wind up the bank.
Paytm sought to ringfence the fallout. In a regulatory filing, it said the licence cancellation applies to Paytm Payments Bank Limited, a separate entity, and should not be attributed to One 97 Communications. It added that there is no exposure or material business arrangement with the bank and that it operates independently, without Paytm’s board or management involvement.
“As informed earlier, Paytm (One 97 Communications Limited) and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies,” the company said.
The distinction may reassure users of the app ecosystem, but the regulator’s verdict is unequivocal. After years of warnings, caps and curbs, the payments bank experiment at Paytm is being shut down—decisively, and with little room left to manoeuvre.
