What is Accident Insurance policy

 

An accident is a sudden and unexpected event that happens when something unexpected happens before it is realized. Accident insurance is an insurance contract that is concluded with the promise of financial protection of the insured from loss of life and property in such an accident.

If someone is injured in a fight, it cannot be called an accident. But if someone falls into the hands of a snatcher and is stabbed, it is called an accident and such risk is insurable. The Oxford Dictionary of Business states,

1. The cause of loss in such insurance is accident.

2. In this case, accident means any danger that happens suddenly and unexpectedly.

3. All types of property insurance are practically caused by accidents, although there are separate insurance for shipping and fire

4. In the case of life it is a guarantee and in the case of property it is a contract of compensation.

In the light of the above discussion, it can be concluded that the agreement executed between the insured and the insurer to provide financial protection against loss of life or property due to any sudden or unforeseen danger or risk is called accident insurance.

In the present age of industrial and mechanical civilization, the risk of accidents has increased drastically. As a result, the scope and nature of the accident has become wider and wider. In line with this, the coverage of accident insurance has also increased. The types of accident insurance are shown below with the help of diagram

Personal accident insurance is an agreement entered into between the insured and the insured in the event of death of the insured or the insured due to an accident or illness or loss of earnings in whole or in part. The following are the different types of insurance:

A. Accidental death insurance: Under such insurance contract, if the insured is injured due to the reasons mentioned in the insurance contract and dies within the period specified in the contract, the insurance claim is fulfilled as per the contract.

B. Accidental disability insurance: Compensation at the rate specified in the policy is if the insured becomes completely or partially disabled due to any of the accidents mentioned in the contract under such accident insurance contract.

C. Specific disease and accident insurance: Accidental Death Insurance or Accidental Disability Insurance if the person is promised compensation in case of disability due to any specific disease other than accident, it is called specific disease and accident insurance.

D. Any type of diseases and accident insurance: Any type of disease and accident insurance if the person has a promise of compensation in case of any disease other than the risk caused by the accident.

E. Medical and Hospital Expenditure Insurance: If a person is ill due to an accident or due to a specific or any ailment, it is called medical and hospital expenses insurance if there is a promise of personal accident insurance to cover the medical and hospital expenses.

Property accident insurance is when the insurer enters into an agreement with the policyholder or issues a policy of insurance with a promise to compensate for any loss of property due to an unforeseen accident. Property accident insurance is issued for various unforeseen accidents outside of naval and fire insurance. The types of insurance are summarized below:

A. Motor vehicle insurance: Motor vehicle owners are always the victims of accidents while traveling on the road. In addition to car-to-car collisions, the car is also damaged along with the passenger due to driver's negligence, vehicle faults, etc. The purpose of such insurance is to leave the risk of loss of motor vehicle or all the liability caused by it to the insurance company for a certain premium.

B. Motorcycle insurance: Motorcycle insurance is similar to motor insurance. Those who ride motorcycles collect such insurance policies. If the motorcycle is damaged due to any collision or collision, the insurer will compensate for that. If a motorist is injured or another person is injured in a collision with a motorcycle, his risk can also be insured with additional premium.

C. Aviation insurance: Aviation is a very valuable asset. The risk is insured if the aircraft is destroyed or partially damaged in an accident.  With an additional premium, its passengers, cargo and ships can also be insured to compensate for any loss of property or persons in the event of an accident.

D. Crop insurance: The capital invested in agriculture and agricultural products can be damaged due to various reasons. Uncertainty in agricultural production is the main risk. Due to the lack of financial viability of the farmers, once they are affected, it cannot be easily overcome.  Therefore, if agricultural production is damaged due to any natural or unnatural cause, insurance can be provided for its compensation.

E. Cattle insurance: In case of death of cattle due to an accident or disease, such insurance has been introduced to protect the farmer or herdsman financially from any loss. It can be insured with extra premium not only for its death but also for temporary or complete disability.

F. Engineering insurance: The insurance that is introduced in the industry to compensate for the loss of equipment and machinery due to an accident, especially in the energy resource manufacturing industry, is called engineering insurance. Such insurance is provided for boilers, generators, transformers, elevators, cranes, steam engines, diesel engines, etc. in large establishments.

G. Theft insurance: Theft, robbery, robbery etc. have been more or less introduced in all societies since ancient times. This results in loss of auxiliary property, especially movable property. Theft insurance has been introduced as a means of compensation to protect its owner financially from such losses.

H. Plate-glass insurance: Plate-glass insurance is issued to compensate for the breakage or damage of fragile items, especially valuable plate-glass or decorative glass or ceramic items used in the home. If glass is installed on doors, windows or anywhere in the house or factory, it can be insured with extra premium.

J. Luggage insurance: Travelers are likely to lose valuable bags, luggage, bedding, etc. while traveling. In addition, it can be destroyed for various reasons. Luggage insurance has been introduced to protect travelers from losing such Luggage.

J. Hijacking insurance: Social crime like hijacking has increased in all societies today. Anyone can suddenly fall prey to snatchers while walking or driving with gold ornaments, money, portable goods. By collecting the snatched insurance policy, the aggrieved party can be financially protected from such loss.

K. War risk insurance: War can cause loss of life and property. In the case of marine insurance or fire insurance, additional premiums can be used to protect against such risks. Apart from this, war risk insurance policy can also be collected against accidents arising out of war related reasons.

L. Rain insurance: Due to less or more rain, various parties, especially farmers, are particularly affected. Therefore, this issue may also include crop insurance. Rain insurance is issued on the condition that if there is more or less rain than the specified limit within the specified period and the crop is damaged, compensation will be given.

M. Cold storage insurance: Cold storage insurance is now widely used in all countries to store perishable goods. Such insurance has been introduced to compensate for the loss of goods stored in the cold storage for any reason.  Usually the owners of cold storages collect such insurance policies.

Damage to a person or property may result in liability of another person. Liability insurance is a form of insurance that a person collects for the purpose of passing on his liability to the insurance company. The following is a brief overview of the different types of liability insurance:

A. Employer's liability insurance: In case of death or injury of a worker due to an accident or attack of an industrial disease while working in a factory, the liability of the employer is liable according to the law. An employer's liability insurance is an insurance that the owner assigns to the insurance company through insurance.

B. Public liability insurance: The type of insurance that a transport company uses to compensate its passengers for any accident while traveling in a motor vehicle, train or plane is called public liability insurance.

C. Product liability insurance: If the goods are lost or destroyed due to any reason while transporting goods from one place to another in a vehicle, then that liability is borne by the transport company. Commodity liability insurance has emerged to get rid of such liability.

D. Professional indemnity insurance: Professional indemnity insurance can cause occupational diseases in some cases due to procedural reasons while working in factories.  

According to the law, if the employee is disabled due to such occupational disease, the responsibility falls on the employer. For this reason, the employer may take professional liability insurance and transfer such liability to the insurer.