Going scuba diving? Buy personal accident cover before taking the plunge

3 min read Last Updated : Oct 07 2024 | 7:52 PM IST

Magma HDI General Insurance recently announced the launch of OneProtect, a personal accident (PA) cover with over 20 customisable add-ons that customers can purchase according to their needs. The timing of the launch is apt, given that the festive period of Navratri, Dussehra, and Diwali has begun when the risk of fire and other accidents increases.

This is also a time when people embark on adventure holidays. “Accidents are unpredictable, whether it’s a mishap during Diwali or Dussehra, a fracture during travel, or a fall in the bathroom,” says Amit Bhandari, chief technical officer, Magma HDI General Insurance.

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A PA cover can help in such instances. “A typical health insurance policy does not cover injuries or accidents during sports like scuba diving or paragliding,” says Naval Goel, founder and chief executive officer (CEO), PolicyX.com.

Coverage gaps a PA policy fills

A PA cover differs from term and medical insurance. Bhandari explains that a term policy essentially covers death. Even if it includes a personal accident rider, it often comes with exclusions, such as adventure sports.

A medical cover may handle medical expenses but does not provide for the temporary or permanent loss of income during the recovery period and after, and expenditures such as travel costs incurred by family members.

“A PA policy, however, covers not only accidental death but also permanent total disability, permanent partial disability, and temporary total disability, along with other possible loss-related scenarios during accidents,” says Shashi Kant Dahuja, executive director and chief underwriting officer, Shriram General Insurance.

Must-have covers and add-ons

PA policies come with a variety of add-ons. Bhandari recommends add-ons such as parental care, widowhood cover, child education support, and a marriage fund for children.

Dahuja suggests covers for broken bones, outpatient department (OPD), burns, coma, emergency family travel, and funerals.

Goel highlights the importance of including coverage for loss of income due to temporary or permanent disability.

“In case of disability, benefits like crutches, wheelchairs, artificial limbs, and even home or vehicle modifications are available,” says Bhandari. A customer can also use a PA policy to obtain a fresh loan after an accident to pay ongoing equated monthly instalments (EMIs).

Adventure sports coverage

Adventure sports coverage, while not common, is gaining popularity with the growing interest in activities like trekking, paragliding and scuba diving. Insurers such as Bajaj Allianz, Reliance, Tata AIG, and Magma HDI offer this cover.

The premium for adventure sports coverage can vary. “It depends on the customer’s risk profile, sum insured, and their specific risks,” says Bhandari.

“If you take an adventure sports cover along with the PA policy, the premium for a Rs 25-50 lakh sum insured can come to Rs 20,000-25,000 a year. A cover of over Rs 50 lakh may mean an annual premium of Rs 30,000-1 lakh,” says Goel.

Key points to remember

Dahuja suggests buying a comprehensive cover, which includes accidental death and also permanent and temporary disability. The sum insured, according to him, should be 100-120 times the monthly income.

Read the terms and conditions related to exclusions to avoid surprises later. “Consider the insurer’s reputation before buying,” says Goel.

Finally, do not focus solely on the premium but consider your lifestyle and needs as well.

First Published: Oct 07 2024 | 7:52 PMIST