What is Personal Accident Insurance?

Personal accident insurance is a policy which covers emergency medical costs incurred to treat injuries sustained during an accident. In addition to bodily injuries, such an insurance plan also covers permanent total or partial disabilities, temporary total or partial disabilities, and even death arising from an accident. There are two different types of personal accident insurance available, namely individual personal accident cover and group personal accident cover. These policies also provide coverage for accidents that occur while travelling by road, air, and rail. However, a personal accident insurance plan does not cover injuries or death arising due to war, voluntary actions, or when the policyholder is under the influence of drugs or intoxicants. 

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There are two different types of personal accident insurance available, namely individual personal accident cover and group personal accident cover. These policies also provide coverage for accidents that occur while travelling by road, air, and rail. However, a personal accident insurance plan does not cover injuries or death arising due to war, voluntary actions, or when the policyholder is under the influence of drugs or intoxicants.

Best Personal Accident Insurance Plans on Bajaj Markets 

Let’s take a look at the personal accident insurance plans on Bajaj Markets -

Plans Available

Premiums Starting At* 

Bajaj Allianz Personal Accident Insurance 

₹3,200

Care Personal Accident Insurance

₹4,472

Aditya Birla Activ Secure Personal Accident  

₹4,472

Child Personal Accident Cover

₹322

Personal Accident & Accidental Hospitalisation Cover

₹589

Accidental Cover with Child Care

₹693

Life Modification with Personal Accidental Cover

₹744

Road Accident Statistics in India

As per the statistics, around 1200+ accidents happen every day on Indian roads due to  carelessness, damaged roads, etc. Here are some lesser-known facts about road accidents in India - 

  • In 2021, India witnessed around 1,50,000+ deaths caused due to road accidents.

  • 70% of the accidents involve riders between 18-45 years of age.

  • Tamil Nadu reports the highest number of road accidents in India.

Types of Personal Accident Insurance

There are many types of personal accident covers in health insurance that you can opt for. Some of the best plans to go with are as below:

 

  • Individual Personal Accident Cover -The individual personal accident policy secures you in the event of an accident. Such an insurance plan covers accidental injuries sustained by the policyholder, such as loss of sight or limbs, disabilities, or even death.

  • Group Personal Accident Cover -The group personal accident insurance plan safeguards a group of people covered under the policy. Organisations purchase such coverage to cover their employees against the risk of accidents. Thus, employees can get personal accident coverage at affordable premiums.

  • Child Personal Accident Cover - Children are often prone to unforeseen accidents. The child's personal accident cover ensures that your child is adequately protected against such injuries and accidents. The plan offers a high insurance amount and covers permanent partial disabilities and related medical expenses. 

     

**Note: Self-inflicted injuries are not covered.

 

  • Personal Accident and Accidental Hospitalisation Cover -The personal accident and accidental hospitalisation plan covers expenses incurred due to accidental death, accidental hospitalisation, parental benefit, permanent total disability, child care, and lifestyle modification. This travel insurance policy helps to minimise the impact of unforeseen adverse situations.

  • Accidental Cover with Child Care - Ensuring the well-being of children is one of the most challenging responsibilities of any parent. The accidental cover with child care offers much-needed financial cushion during an unforeseen situation. This plan takes care of permanent partial disability, permanent total disability, temporary total disability, parental care and child care coverage, and even death.

  • Lifestyle Modification with Personal Accidental Cover - Accidents can happen anywhere and everywhere. Life modification with personal accidental cover helps modify your assets to reduce the impact of any personal accident- all at a  low premium!

Features and Benefits of Personal Accident Insurance 

Listed below are the main features and advantages that come with personal accident insurance: 

 

  • Secures Education Expenses -The dependent children will receive a lump sum benefit in case of permanent disability or death of the insured due to an accident. This amount can be used to cover the education costs of the children.

  • Covers Funeral Costs - The personal accident insurance policy also covers the expenses incurred while arranging the funeral of the insured. Thus, the dependents can have a dignified funeral for the deceased policyholder without worrying about their finances.

  • Ensures Medical Care - In case the policyholder endures any accidental injuries, the policy covers the cost of hospitalisation and treatment. So, you can focus on recovering from your injuries by getting the best medical care!

  • Burns & Broken Bones - Any accidental burns, fractures, or bone damage experienced by the policyholder due to the accident is covered under the policy.

  • Repatriation of Mortal Remains - The expenses incurred on transporting the mortal remains of the policyholder from the site of the accident to the hospital or their home are also covered under the insurance plan. 

  • Covers Ambulance Charges - The insurance provider shall reimburse the cost of getting an ambulance for the insured.

  • Pays for Travel Expenses - If the hospital is far from your residence, the personal accident insurance cover shall pay for the actual travel cost. This benefit is available to the immediate family members of the policyholder.

  • Offers Hospital Daily Cash - Depending on the personal accident policy, the insurance provider shall payout a fixed amount in case of hospitalisation to manage other medical expenses.

What's Covered & Not Covered Under Personal Accident Insurance

Check out the table below to know about the inclusions and exclusions under the personal accident insurance plan -

Inclusions

Exclusions

Death due to accident

Death due to natural causes

Permanent total/partial disability 

Pre-existing disabilities or injuries 

Dismemberment due to accident 

Pregnancy and childbirth 

Medical coverage for hospitalisation charges 

Suicide/self-harm 

Academic support for children 

Non-allopathic medicine/treatments 

Coverage for life support 

Medical issues due to the use of drugs/alcohol 

Burns and fractures

Injuries caused due to being involved in criminal or illegal activity 

Daily cash allowance and ambulance coverage

Injuries caused due to being involved in the military/navy/airforce or adventure sports 

Why Do You Need Personal Accident Insurance?

You may need personal accident insurance for the following important reasons: 

 

  • Financially Secures Against Accidents - The chances of suffering from multiple injuries or disabilities are higher during an accident. Such an unfortunate mishap can lead to loss of limbs or sight, permanent or temporary disability, and even death. The last thing you would want to worry about in such a situation is healthcare expenses, which is why personal accident insurance is a must-have.

  • Offers Wider Coverage - Personal accident health insurance offers comprehensive coverage. Apart from death resulting from the mishap, it also includes other circumstances such as temporary or permanent disability and partial or total disability. You can always fall back onto your insurance plan no matter what!

  • Provides Cost-Effective Premiums - Premiums charged for personal accident cover are affordable when considering the benefits. When compared to other plans, not only can you get lump sum payouts but also extensive coverage at an affordable cost!

Tax Implications Under a Personal Accident Policy

Section 80D of the Income Tax Act (1961) does not have any provisions for tax benefits for an accident insurance policy. However, the lack of tax benefits should not deter you from purchasing personal accident insurance. The main purpose of buying this policy is financial security and safety for you and your family, as well as coverage against various kinds of medical costs and disabilities caused due to accidents.

What is the Difference between Life Insurance and Personal Accident Insurance?

Life insurance offers coverage or compensation to the policyholder irrespective of the cause of death whereas, in personal accident insurance, the coverage or compensation can be availed only for the loss or damages caused in an accident. 

Check out the pointers below to find major differences between life insurance and personal accident insurance -

 

  • Death Coverage - Life insurance plans compensate for natural, illness, and accidental deaths. Suicide attempts are not included in the life insurance policy, however, under personal accident insurance, the death coverage can be claimed only when the policyholder dies instantly or within 180 days due to accidental injuries.

  • Disability Coverage - Personal accident insurance will offer coverage for temporary/ permanent impairment or disability in the body parts or organs caused due to accidents. A life insurance plan will not cover any temporary/ permanent impairment or disability in the body parts or organs.

  • Add-on Facility - One can include add-on features in the life insurance plans like retirement solutions, investment goals, etc. The personal accident insurance plan does not offer an add-on facility.

Accidental Insurance Vs Life Insurance Comparison Table

Check out the table below to find death coverage differences in personal accident insurance and life insurance plans -

Death Coverage Category

Personal Accident Insurance

Life insurance

Critical illness or disease

No

Yes

Accidental 

Yes

Yes

Drug overdose

No

No

Suicide

No

No

Natural Causes

No

Yes

What are the Differences between Critical Illness Insurance and Personal Accident Insurance?

Critical illness insurance policy offers financial assistance to the policyholder for medical bills and treatments for a specific illness, whereas personal accident insurance offers coverage for loss or damage caused due to an accident. Some of the major differences between critical illness insurance and personal accident insurance -

Category 

Personal Accident Insurance

Critical Illness Insurance 

Coverage

Loss, damages, or injuries caused due to accidents

Any disease or illness like cancer, paralysis, organ failure, etc.

Compensation

The policy offers compensation through a cashless settlement facility or reimbursements.

The policy offers lump-sum compensation for treatments based on reports or prescriptions.

Waiting Period

Zero waiting period

Three months waiting period

Medical check-up

No medical check-up is required

There is a need for a proper medical check-up.

What is the Difference Between Term Insurance and Personal Accident Insurance?

Term insurance offers death coverage caused due to natural or accidental factors whereas personal accident insurance offers coverage for loss or damage to the policyholder due to accidents.

 

The premium amount in term insurance is derived by taking add-on features into the calculation, whereas in personal accident cover the premium amount is majorly influenced by the policyholder’s profession.

How Much Does Personal Accidental Insurance Cost

The premium of the accident insurance policy depends on various factors such as your age, occupation, medical history, etc. 

Thus, the cost of personal accident coverage may vary from one insurance provider to another. But, it is recommended to avoid compromising on the coverage for a lower premium quote.

How Much Personal Accident Insurance Coverage is Sufficient

While estimating the coverage for a personal accident health insurance plan, you must understand your dependents' requirements. In the event of permanent disability or death, the sum insured must be sufficient to secure your family's financial needs. As a thumb rule, many recommend that the insurance policy coverage amount should be 8-10 times your annual income. This can easily safeguard the financial requirements of your loved ones without having to depend financially on others. 

 

The best option is to go for cost-effective Pocket Insurance and Subscriptions. These plans not only ease the financial burden with their affordable premium rates but also extend significant monetary aid during any crisis. Plans like natural disaster cover, child personal accident cover, cancer cover, etc., come at an affordable premium with a high insurance amount.

Documents Required to Claim under Personal Accident Insurance 

You may have to submit the following documents when claiming an accident insurance policy: 

 

  • Original insurance policy document

  • Death certificate of the policyholder, in case of death

  • Proof of identity

  • Proof of age

  • Medical certificate, as proof of death of the insured

  • Discharge form

  • Post-mortem report

  • Hospital records

  • Police FIR

  • Medical bills and receipts

Best Health Insurance Plans Available at Bajaj MARKETS

FAQs

  • ✔️What is covered under a personal accident insurance policy?

    The following aspects are covered under the personal accident insurance plan:

     

    • Accidental death

    • Accidental dismemberment

    • Disability

    • Medical expenses

    • Child education

    • Ambulance charges

    • Fractures

    • Daily allowance

  • ✔️What is covered under a personal accident insurance policy?

    The following aspects are covered under the personal accident insurance plan:

    • Accidental death

    • Accidental dismemberment

    • Disability

    • Medical expenses

    • Child education

    • Ambulance charges

    • Fractures

    • Daily allowance

  • ✔️What are the documents required for raising a personal accident insurance claim?

    You can keep the following documents ready while filing a personal accident insurance claim: 

    • Medical report

    • Original medical bills

    • Death certificate, in case of death

    • Post-mortem report

    • FIR 

  • ✔️What is the difference between a personal accident cover and a health insurance plan?

    A personal accident insurance plan secures you against the risk of an accident and covers the healthcare cost arising from treating accidental injuries. Whereas, health insurance covers any medical expenses that you incur for ailments, injuries, etc. throughout the policy tenor.

  • ✔️How do I buy health insurance policies online on Bajaj Markets?

    You can head over to the ‘Health Insurance’ section on Bajaj Markets or download our insurance app to manage your plans.

  • ✔️Do I still require a personal accident cover if I have a health plan?

    Yes. Both these plans are unique and provide coverage for different conditions. Unlike a personal accident policy, health insurance will not offer a lump sum benefit in case of disablement or death of the insured.

  • ✔️Should I purchase a different personal accident cover for all my family members?

    No. The personal accident insurance plan is available as a floater policy which shall safeguard you and your dependents against unforeseen mishaps.

     

  • ✔️Is there an age limit for buying a personal accident cover?

    A minimum and maximum age limit might be applicable while buying a personal accident cover. But such an age limit might vary from one insurer to another.

     

  • ✔️Who can take personal accident policy?

    Any individual between 18 -70 years of age can purchase a personal accident insurance policy to avail coverage from accidental loss, damage or injuries.

     

  • ✔️Can I file multiple personal accident insurance claims?

    One can have multiple personal accident insurance policies and is legally eligible to file multiple claims to avail 100% coverage and compensation for accidental loss, injury, impairments or damages caused, however, one must carefully read and understand all the terms and conditions of the insurance companies beforehand.

  • ✔️After an accident, how can I get money from the insurance company?

    Follow the below-mentioned procedure to apply for a settlement from the insurance company after the accident -

    • Collect all the factual information from the scene. Also, check for an eyewitness to testify to the information.

    • Take medical treatment and keep the prescriptions and reports handy.

    • Inform the insurance agent about the accident and ask for a settlement.

    • A duly -filled settlement form needs to be submitted along with the documents in the insurance company.

    • Upon submission, the insurance company will release the settlement amount.

  • ✔️What is the validity of personal accident cover?

    Personal accident cover is valid for only 12 months. The occurrence of any incident or accident during the valid period of the personal accident insurance is eligible for compensation.

  • ✔️Which type of policy is best for personal accident insurance?

    A personal accident policy that takes care of  hospitalization expenses apart from death coverage is considered as ideal policy type in personal accident insurance.