Critical illness & Personal accident demistified

Once, you have a basic health insurance covering all members of the family, you should think of supplementing your insurance cover with a Critical Illness policy and a Personal Accident policy. These policies can help you in certain contingencies.

Critical illness policy

This is an insurance cover against some specified diseases. The insurance company pays a lump sum cash amount when the specified disease is diagnosed irrespective of the actual bill amount in the hospital.  While your medical insurance policy reimburses the actual expenses in the hospital, Critical Illness policy will give you a lump sum amount, as per your policy. Mediclaim cuts down your hospitalization cost where as critical illness policy helps you in compensating the financial loss during a serious illness.

Diseases covered

The list of diseases varies from company to company and one needs to check the exact details before buying the policy. Most common diseases covered are – Cancer, Major Organ Transplant, Heart Valve Replacement, Total Blindness, Renal Disease, Kidney failure etc. It is important to know the exclusions, while taking the policy to avoid any confusion later.

Personal Accident Policy (PA Policy)

This policy offer coverage against Death or Disablement due to accident. In case of death / Total Permanent Disability of the policy holder due to accident, the   Sum insured is payable. This is really a support when the policy holder is disabled, and is not in a position to carry out his normal work. Other policies will not be useful in such conditions.

Sometimes a person met with an accident and loses his body parts – may not be able to work in future. In case of Permanent total disability 100% sum insured is given to the insured person. It covers:

• Loss of both hands or both feet or one hand and one foot
• Loss of a Limb (hand/foot) and an eye
• Complete and irrecoverable loss of sight of both eyes
• Complete and irrecoverable loss of speech & hearing of both ears

 This policy also pays a fixed percentage of the sum insured in case of permanent partial disability and Temporary total disability. This policy covers different types of accidents like road, rail, accidents due to natural calamities and those out of terrorism/ terrorist acts.

Critical illness policy will come to the rescue in case of any major diseases. Personal accident policy will support in case of an accidental death or disability. If these 2 policies are taken along with a good Health insurance policy, it will act as a comprehensive health cover.

But please study the exclusions etc. before finalizing the policy.