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Know the Difference between Accident Insurance and Health Insurance

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Ailments, accidents, and unexpected hospitalisations can be extremely overwhelming for both the patients and their loved ones. In such critical situations, having the right insurance coverage becomes significant as it ensures everyone can focus on the most important aspect — receiving the necessary treatment without worrying about managing the funds. Two common insurance options to consider for mishaps like accidents are — health insurance and personal accident insurance. But which one is a better fit for you? We will talk about accident insurance vs health insurance, helping you make a well-informed decision based on your budget, needs, and circumstances.

Difference between Accident Insurance and Health Insurance

Let's take a look at accident insurance vs health insurance:

What is Health Insurance?

Health insurance covers medical expenses incurred due to an illness, injury, or accident. In case of any medical emergencies or hospitalisation, health insurance takes care of the expenses, which, otherwise, can financially burden you. In addition to hospitalisation costs, a healthcare plan covers pre- and post-hospitalisation expenses, ambulance charges, daycare procedures, diagnostic tests, consultation charges, domiciliary treatments, etc. Although a health insurance policy covers a wide range of ailments, there are also certain exclusions you should be aware of. While looking for the best health insurance, make sure you check the coverage, benefits, deductibles, premium, and also exclusions.

Health insurance is, basically, a contract between an insurance company and an individual in which the insurer agrees to provide financial compensation for the individual's medical expenses. The individual or policyholder, in turn, pays a certain amount as a premium to stay covered.

What is Personal Accident Cover in Health Insurance?

Personal Accident (PA) Cover in health insurance also provides financial assistance but only in case of accidents. In other words, if you or an insured family member suffers an accidental injury, the personal accident insurance will take care of the treatment costs. In case of an unfortunate death in an accident, the nominee will get compensation up to the sum insured. In PA cover, you will get a lump sum amount that can be used for medical and non-medical expenses. In case of total or partial disability in an accident, the lump sum amount can compensate for the loss of income while you are recovering.

Conclusion

Health insurance today has become a necessity to beat medical inflation. While health insurance covers medical expenses owing to injury, illness, or accidents, personal accident insurance is limited to accidental injury and death. Both health insurance and personal accident insurance have different needs. So understand both the terms carefully based on the above accident insurance vs health insurance table and take a call if you need personal accident cover along with health insurance. Whatever the case, securing yourself and your family with comprehensive health insurance is important to stay prepared for any eventualities.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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