Hospital Cash Insurance Comes Handy In Crisis

The increasing number of road accidents has become a major cause for concern in India.  In our country, road accidents account for an excess of 1, 00,000 deaths and permanently disable about 3,00,000 annually. Rash driving, failure to comply with speed limits, poor road infrastructure, growing drinking and driving habits are some of the main reasons contributing to these disheartening figures. The society at large lacks the comprehensive approach to road safety.  National Council for Applied Economic Research’s report suggests that by 2015 - 2016, India would have 53.3 million middle class households. The growing middle class is encouraged to buy new vehicles and hence the youth aged between 15 -29 years are the main victims of road accidents. In fact, study shows that 51.9 per cent of the victims are in the age group 25 - 65 followed by 30.3 per cent in the age group 15-24. Another report says that over 90 per cent of road traffic deaths and injuries occur in low-income and middle-income countries.Such accidents are however not anticipated but they have consequences that can last a lifetime. In case of an accident or mishap, the entire financial burden suddenly falls on one person. This is a crisis situation where middle class households suffer the most. Their cumulative life earnings that are actually saved for their child’s education and marriage are spent on medical bills, hospitalization and other overheads. To avoid such circumstances, it is always advisable to invest in an insurance policy which will help mitigate the financial impact of unfortunate events. Personal accident insurance policy provides assurance financially and covers death and disability of the policy holder caused by an accident. In the event of accidental death or permanent total disability, 5 per cent of the sum assured or Rs.50, 000 whichever is lower is paid towards the child’s education benefit.While the personal accident insurance policy takes care of the hospital bills, the hospital cash insurance policy takes care of the miscellaneous expenses such as transportation, patient attendant lodging and other overheads. There are certain cases where hospitalization is for a longer duration and extra expenses can drain your savings. The hospital cash plan only complements the personal accidental policy. You can also avail daily cash benefit of Rs 4000/- per day up to a maximum of 45 days. You will save tax under Section 80D of the Income Tax Act.