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Health Insurance or Accident Insurance: Which is Better? Research Team | Posted On Saturday, August 31,2019, 05:28 PM

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Health Insurance or Accident Insurance: Which is Better?



Which type of insurance should I buy? Is it health insurance or accident insurance? Well, the answer is you need both health and accident insurance. Both of them serve different purposes.

Health insurance protects you against costly hospitalization whereas accident insurance protects against death and disability in an accident.

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Health Insurance or Accident Insurance: Which is Better?


Health insurance policies offer comprehensive coverage against injuries, sickness and other conditions. On the other hand, personal accident policies cover partial and permanent disabilities in accidents.

Post and pre-hospitalization Expenses

What are pre-hospitalization expenses? Pre-hospitalization expenses are medical expenses before hospitalization. What are post-hospitalization expenses? Post-hospitalization expenses are health care expenses after hospital discharge.

Health insurance plans cover both post and pre-hospitalization expenses, but only for a given number of days. On the contrary, personal accident policies do not cover pre and post-hospitalization expenses and they cover just the medical expenses spent on accident injuries.

See Also: Health Insurance Benefits

Disability Cover

Accidents are unpredictable. They may lead to permanent or partial disabilities. If you get seriously injured in an accident, health insurance is of no use, especially for loss of income on a job loss. Accident insurance plans offer cover against disabilities in an accident.

Death cover

Health insurance does not offer any cover against death, which is covered by life insurance policies. Accidental deaths are covered by personal accident insurance policies.

The family doesn’t get any benefit if the health insurance policyholder dies in an accident. On the other hand accident insurance plans give the family a death benefit on death within the term of the plan due to an accident.

See Also: Exclusions of Health Insurance Policy


Riders increase the coverage under the insurance plan. Some insurance policies are offered automatically with riders. If you want to add them, you have to enquire with the insurers.

Basically, a rider is an extra benefit that may be included in a basic health insurance policy. The top five health insurance riders are room rent waiver, hospital cash, maternity cover, personal accident rider and critical illness cover.

The most common riders vis-a-vis accident insurance plans are accidental death benefit, permanent partial disability benefit and total permanent disability benefit. When it comes to riders, both health insurance and personal accident insurance offer extensive cover.

A snapshot of the distinctions between health insurance and personal accident cover

Health Insurance

Personal Accident Insurance

Accident deaths are not covered

Accident deaths are covered

Pre and post-hospitalization is covered

Pre and post-hospitalization expenses are not covered.

Disabilities in accidents are not covered

Disabilities caused due to accidents are covered

Medical expenses towards accidental injuries are covered.

Covers injuries and death in accidents


Both health and accident insurance plans have their uses. Both of them are very affordable and a must have. They cover different scenarios and offer added protection against risk. Make sure you have both of them in your portfolio.

See Also: Family Health Insurance Plan

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