Why PA Cover?
While planning for insurance it should be kept in mind that while financial assistance is provided to the insured's family on his death, personal accident policy will protect the rights of the insured's family even in case of disability (not covered under life insurance). Moreover, add-on features of PA policy could take care of the medical needs like hospitalization charges and daily or weekly expense limit, which otherwise could put any family in a financial crunch.
How much is enough?
As per normal rule, individuals should buy a PA cover equivalent to life cover, which means that if life cover of Rs. 50 lakh is taken, then the same coverage should be opted for PA cover as well.
Criteria or Eligibility
PA policies take into account the income earning capacity as well as a job condition of an applicant before granting a cover. Applications might get rejected if the applicant works in an excessive hazardous or accident prone job or has physical deformity.
Individuals are categorized in between level I to Level III risk profiles; where level I represent the lowest risk and III higher risk. Premiums are high for people falling into a high risk category. PA cover of Rs. 5 lakh for a 25-year old individual is available for as little as Rs. 1,000. However, it should be ensured that PA covers do cover disability apart from death coverage.
Nowadays, corporates too provide PA coverage to their employees but such covers are often not adequate for individuals, and therefore, it is better to go for an independent plan.