To understand ‘bodily injury liability’ let’s consider a situation when a person ‘A’ who is driving a car meets an accident due to his own mistake in which another person ‘B’ is injured severely. Now, the person ‘A’ would be held responsible for the incident and so there could be a legal obligation on person ‘A’ to provide complete compensation to person ‘B’ against the financial loss incurred on medical bills, surgery, medical equipment’s and many other miscellaneous costs.
Bodily injury insurance is basically a part of liability insurance coverage which offers a protection for other person’s injuries and death due to an accident in which the holder of the insurance policy is found guilty. A liability insurance coverage includes both bodily injury liability as well as physical property damage coverage.
Holding a bodily injury liability insurance may support to cover the cost of treatment for other person (could be single or many) who got injured in an accident. Therefore, it protects the policy holder against any unintentional event while driving a CAR, which may otherwise cause a huge financial loss.
Typically, the insurance providers define two layers of limits on a bodily injury liability insurance, the first type of limit is set over the ‘per-person’ injury cost incurred in an accident and the second type of limit is set over ‘total cost coverage’ for an accident. By this approach the insurance provider makes below two things clear in the event of an accident:
1. What is the overall protection cost of one person injury.
2. What is the Overall Protection Limit for an accident, any expense beyond which should be borne by the customer.
What are the benefits of bodily injury liability coverage?
1. Immediately after an accident there could be a temporary legal obligation on the accused to pay all the emergency medical bills and charges of the hospital in which the injured person is admitted. This may lead the car driver to an unexpected financial loss and sometime there are situations when a person has to pay from all his savings, swipe credit cards and even get a loan to compensate the loss. Holding a bodily injury liability coverage protect an individual against all these abrupt losses.
2. If the driver is called for any judiciary actions, there could be a requirement to seek a legal counselor or an advocate whose fees and cost are much high. This may again cause a cumulative loss to an individual, holding bodily injury liability coverage protects against these losses as well.
3. if the victim (or the injured person) is severely effected in the accident and he or she is not capable to continue a normal life, or loose his current job, or gets admitted to hospital for a very longer time under critical situation, holding the bodily injury liability coverage can offer these compensations to the injured person and therefore provides financial protection to the policy holder.
4. Medical bills and charges of the injured peroson are also covered under the bodily injury liability coverage scheme.
5. If any additional support or medical equipment’s are needed during the surgery or recovery process of the injured person, these can be very well claimed against bodily injury liability coverage policy.
6. Broadly speaking, a ‘bodily injury insurance coverage’ covers both short term and long term medical expenses and is not restricted just to an injury of a single person. If multiple people are injured this policy can cover there medical expenses as well (up-to the allowed limit).
As the companies offering a ‘bodily injury liability cover’ does an upfront agreement with the customer on the maximum limits on the per person injury and overall cost of accident, any outstanding liability beyond this limit are not generally entertained by the insurance companies. The policy holder would have to settle any left out balances.
As per legal norms few states demand every driver to have at least a basic liability injury cover, however holding a low limit coverage might not be sufficient in all the cases of severe accidents. An individual should opt for a coverage plan that offers maximum benefit and add more value. Please read all the terms and conditions of the policy before purchasing a liability coverage. You can easily reach out to an insurance companie to examine and declare an estimate as to how much coverage would be adequate for a person as part of their free quote services.
An example on how a bodily injury liability insurance cover works: What is the difference between per-person and per-accident limits:
As the bodily injury insurance coverage provides a limit on ‘par-person’ and ‘per-accident’.
Let us assume that if a policy holder is given a ‘per person’ limit of $5,000 and ‘Accidental limit’ of $30,000.
If only one person is injured and the claim amount is $8000 for a single person. The company would provide only $5000 as this is the maximum ‘per-person’ limit.
If 3 persons are injured and the claim amounts are $3,000, $2,500 and $4,000 -In this case the policy holder would not be required to pay any amount from his pocket, as all the three bills are within person limit predefined by the insurance company which is $5,000.
Let us take one more example to understand the ‘par-accident’ limit-
Suppose for the same individual, the claim amounts against 3 injured person are $4,000, $22,000 and $5,000. In this case the overall claim amount exceeds the ‘per-accident’ limit the company, which is $30,000 only. So the insurance company would pay $30,000 and remaining $1,000 should be borne by the individual.
How much bodily coverage injury coverage should we buy?
Ideally it depends on individual capacity to afford the coverage plans. More the limit more the satisfaction and lesser the risk at your personal property. Small causalities may not cost you much but accidents with severe injuries to multiple people aur a case of accidental death may exceed the expenses a great extent and you might end up pay all your savings and might get into other loans to settle the claim amounts. So having a better bodily injury coverage can protect potential financial loss in adverse situations.