Reasons To Buy A Separate Personal Accident Insurance Policy

Posted on: Feb 16, 2024 | 3 mins | Written by: HDFC ERGO Team

Reasons To Buy A Separate Personal Accident Insurance Policy

Do You Need Personal Accident Insurance If It Is Covered Under Health Insurance?

So, you have a comprehensive health insurance policy that offers wide coverage against unforeseen events, including personal accidents. However, did you know that accident coverage in health insurance comes with limitations? Most health insurance policies cover expenses related to accidental hospitalisation of the policyholder. On the other hand, a personal accident insurance policy offers wide coverage to the insured and eases mental and financial stress during such unforeseen events. While some health insurance companies offer personal accident insurance as an add-on cover, others have it as a separate policy. Let’s talk about health insurance and personal accident insurance in detail.

What is health insurance?

A healthcare policy is an insurance product that covers the medical expenses of the insured. If you opt for a comprehensive healthcare plan, it will cover your hospital bills, pre- and post-hospitalisation expenses, home healthcare costs, daycare procedures, AYUSH treatment, road ambulance bills, accidental hospitalisation, and more. Coverage usually starts after the initial waiting period of 30 days. However, accidental hospitalisation is covered from day 1, i.e. the policy commencement date.

What is personal accident insurance?

A personal accident insurance policy offers comprehensive coverage against medical expenses related to accidents. Insurance companies offer this coverage, keeping the insured as well as their family in mind. The policy may cover the following —

• Hospital bills of the insured

If the insured meets with an accident, the insurance provider will cover his/her hospital bills up to the sum insured.

• Accidental death of the insured

In this case, the insurance company gives the entire sum insured to the policyholder’s family.

• Permanent disability of the insured in an accident

If the insured meets with a major accident that leads to permanent disability, the insurance company offers benefits based on the sum insured of the personal accident cover.

• Burns or broken bones due to an accident

If an accident results in burns or broken bones, the insurer will compensate the insured. The compensation or benefit will depend on the policy’s sum insured.

• Road ambulance charges

A personal accident insurance policy also covers the road ambulance bills of the policyholder.

Benefits of a personal accident insurance policy

A personal accident insurance policy offers comprehensive coverage to policyholders and helps them safeguard their savings during medical emergencies. The following are the benefits of personal accident insurance coverage —

1. Extensive coverage

While a healthcare policy covers only accidental hospitalisation, a personal accident insurance policy offers wide coverage. This includes accidental death or permanent disability of the policyholder, bone fractures, burns, etc.

2. Financial security

If the policyholder meets with a fatal accident, the insurance company offers a lump sum equal to the policy’s sum insured. The insurer also compensates the insured if an accident leads to permanent disability. These benefits can help ease their financial worries, especially if the policyholder is the family’s sole breadwinner and happens to meet with a major accident.

3. Worldwide coverage

A personal accident insurance policy offers worldwide coverage to policyholders. This option may not be available in health insurance policies. So, if you meet with an accident within India or overseas, the insurer will come to your rescue.

4. No waiting period

Personal accident insurance policies do not have a waiting period. These insurance plans cover policyholders from day 1.

5. No-claim bonus

If you buy a personal accident insurance policy, you can enjoy no-claim bonuses for every claim-free year.

Should you opt for a personal accident insurance cover?

It is wise to buy a personal accident insurance policy for comprehensive coverage and additional benefits. If you meet with an accident, your health insurance will cover only your hospital bills and road ambulance charges. On the other hand, a personal accident insurance policy will cover your hospital bills and offer financial assistance in case of death or permanent disability.

You can take personal accident insurance as an add-on cover or a separate policy. Buying it as an add-on will extend your health plan coverage and ensure financial assistance in case of an accident. You can opt for a separate plan if your health insurance provider does not offer this add-on.

Conclusion

To sum up, even if accidental hospitalisation is covered under your health insurance policy, the coverage will be limited to your hospital bills. On the other hand, if you buy a personal accident insurance policy or add-on cover, the insurer will offer wide coverage and ensure financial security for you and your loved ones. If you are worried about the additional policy premiums, you can claim annual tax rebates and no-claim bonuses on the same. You can easily check personal accident insurance covers online and choose a plan that fits your requirements and budget.

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

Know the Difference between Accident Insurance and Health Insurance

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Personal Accident cover is equally important as compared to life and health cover