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The death of a loved one can be mentally and emotionally draining. However, in case of the death of the family's sole earning member, the dependents have to bear the financial brunt of such a loss. But does medical insurance offer coverage for the policyholder’s death? Unfortunately, health insurance doesn’t cover death because it is a policy which secures your medical care expenses. The insurance plan is designed to cover planned as well as emergency hospitalisation but no death benefit is provided under any type of health insurance.

Important Update (Dated May 30, 2024) – Good news for Health Insurance policyholders! According to the Master Circular on Health Insurance Business 29052024 rolled out on May 29, 2024 by IRDAI, insurers are to decide on the request for cashless claims within 1 hour of receiving the request. Also, the final claim is to be granted within 3 hours after the policyholder’s discharge from the hospital. Insurers have been directed by IRDAI to establish necessary systems and procedures for this process by July 31, 2024. The Master Circular on Health Insurance Business 29052024 circular is available here -

Accidental Death Cover Under Personal Accident Insurance Plan

Now you must have understood that a health insurance policy does not cover death, let us look at a plan that does. In the event of an unforeseen mishap, a personal accident insurance policy offers a financial backup to your family members. Unlike medical insurance, personal accident cover is designed to financially safeguard you against accidental death or disability. 

In case such an untoward event takes place, the insurance provider shall pay out a lump sum death benefit as an income replacement to your dependents. Thus, you can rest assured as your loved ones will be financially self-sufficient in the event of your unfortunate death. However, you must note that a personal accident insurance plan does not include natural death. The insurance company shall reject your insurance claim if it has been filed for the policyholder’s natural death.

Best Personal Accident Insurance Plans on Bajaj Markets

Here are some of the best health insurance plans that offer personal accident cover:

Plans Available 

Premiums Starting at* (without GST)

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Bajaj Allianz Health Guard


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CARE Health Insurance Plan


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Aditya Birla Health Insurance


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Disclaimer: *Premium rates are indicative. The actual premium might change depending on numerous factors.

How Much Personal Accident Insurance Coverage is Sufficient?

It is important to note that the insurance coverage you choose shall act as an income replacement or a financial backup for your dependents. The sum insured should be sufficient to cover the daily requirements as well as the future needs of your family members. Many advise that the coverage sum should be 8-10 times your annual income. However, make sure you determine the short-term and long-term monetary requirements that your loved ones may have in your absence.

Things to Remember While Buying Personal Accident Insurance

Here are some crucial factors to take into account while purchasing a personal accident insurance plan: 

  • Type of Policy

You can opt for an individual as well as family floater personal accident insurance. Based on your and your family’s insurance requirements, you can choose between the two plan types! 

  • Coverage

A vital aspect of personal accident insurance is the coverage amount of the plan. Make sure you compare various insurers and check the sum insured offered. This will help you purchase a policy with sufficient coverage!

  • Premium Quote

Although the health insurance premium should never be the only deciding factor, you must compare quotes online. To avail an affordable personal accident insurance premium, look at the prices offered by other insurance companies. This can go a long way in saving you some money without losing any benefits!

  • Global Coverage

There are numerous insurance providers offering a personal accident policy with global coverage. In case you were to meet with an unfortunate accident overseas, the insurance plan would compensate for the loss. If global health insurance coverage suits your requirements, you can opt for a plan offering this feature. 

  • Exclusions

Every insurance plan has a set of exclusions that are not covered under the policy. To avoid facing claim rejections in the future, understanding the exclusions of your policy is a must. It is recommended to read the fine print and go through the terms and conditions of the policy to steer clear of any claim issues! 

  • Insurance Company

Finally comes the insurance company that shall issue the personal accident insurance plan. You must review aspects such as the Claim Settlement Ratio (CSR), Incurred Claim Ratio (ICR), customer ratings, network hospitals, etc. to opt for the right insurer. You can easily assess these factors online and purchase a comprehensive personal accident insurance policy.

Final Thoughts

Untoward incidents are always unpredictable which is why it is vital to secure a financial backup for your loved ones. To provide sufficient monetary cushioning to your dependents, a personal accident cover ensures a sufficient death benefit! Although you cannot gain coverage for natural death, you can surely opt for accidental death coverage.

But if you have been putting off purchasing health insurance, head over to Bajaj Markets to buy a suitable plan at a lucrative premium rate! To protect your life savings against medical emergencies, you must opt for insurance coverage. In case you are worried about the health insurance rates, use our health insurance premium calculator that will help you estimate your insurance quote today!

FAQs Related to Personal Accident Insurance

What will happen to the health insurance plan after my death?

The insurance company should be notified regarding the policyholder’s death to understand the next steps regarding the health plan. You may contact your insurer to learn more about the death clause applicable to your policy.

Which health insurance plan covers the risk of death?

A personal accident insurance plan is a policy that offers a death cover in case the insured passes away. However, the policy shall only pay out the death benefit in the event of the policyholder’s accidental death.

Does the insurer require the policyholder’s death certificate to raise an insurance claim?

Yes. The beneficiary of the health insurance plan must provide the policyholder’s death certificate to file an insurance claim.

What will happen to the health plan if one of the policyholders passes away?

In the case of a family floater plan, the proposer of the policy must notify the insurance company regarding the member’s death. The deceased policyholder shall be removed from the plan and the premium will be refunded.

How can I purchase health insurance on Bajaj Markets?

You can head over to the ‘health insurance’ section on Bajaj Markets to go through the multiple insurance offerings that we have and opt for the right policy!

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