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Personal Accident Insurance vs Health Insurance Research Team | Posted On Thursday, July 18,2019, 03:17 PM

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Personal Accident Insurance vs Health Insurance



Do I need a personal accident insurance policy or a health insurance policy? Should I buy a personal accident plan in addition to a health insurance plan? Is health insurance sufficient for me? Do I require both health insurance and personal accident insurance? We address these important questions on health and personal accident plans.

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What is Personal Accident Insurance?

Suresh was driving home after work. While taking a U-turn, a speeding bus rammed into his vehicle. He was trapped inside the car. Some people took him to the nearest hospital. The doctor suggested 3 months of bed rest after hospitalization for a complete cure.

Suresh was not too perturbed as he had a personal accident insurance policy. A personal accident insurance policy reimburses medical expenses and offers compensation in case of death or disability in accidents. For you and family, it assures financial stability in case of an accident.

The personal accident plan covers minor and major accidents. It covers partial and total disability and also fatality in an accident. Temporary disability in an accident, which restricts earning for a while, is also covered. Avail personal accident plan for death and disability in an accident.

See Also: What is Accidental Death Insurance?

What is Health Insurance?

Health insurance is a must have against costly hospitalization. Let’s assume you have been diagnosed with malaria. You can recover from the illness, but what about the medical expenses? Are you financially capable of managing costly hospitalization?

The health insurance policy helps manage surgical and medical expenses. You just have to pay the health insurance premiums in time. In India, three types of health insurance plans are offered. They include hospitalization plans, critical illness plans and hospital daily cash benefit plans.

Health Insurance vs Personal Accident Insurance

Medical Overheads

A health insurance plan covers medical expenses arising out of injuries, illnesses and other medical conditions, whereas a personal accident insurance plan covers medical expenses arising from accidental injuries or compensates for death in an accident. Health insurance offers a comprehensive cover against illnesses and injuries/accidents. On the contrary, a personal accident insurance plan is an accident-specific insurance policy.

See Also: Personal Accident Insurance Scheme

Disability Cover

Personal accident insurance plans cover accidental death, permanent total disabilities and permanent partial disabilities caused in an accident. In case of permanent total disabilities, the insurer pays 50-100% of the sum assured, and in case of permanent partial disabilities, the insurer pays a predetermined percentage of the sum assured.


Both health and personal accidental insurance policies offer riders. You may choose riders like ambulance allowance, hospitalization expenses, hospital daily cash, and so on, with a personal accident policy.

You may also opt for riders like room rent waiver, critical illness cover, hospitalization cash cover, super top-up cover and top-up cover with a health insurance policy.

See Also: Here's Why You Need a Personal Accident Cover Even Though You Have a Term Plan

Hospitalization Expenses

The medical expenses incurred prior to hospitalization are called pre-hospitalization expenses. The medical expenses incurred after discharge are called post-hospitalization expenses. For a specific number of days, pre and post-hospitalization expenses are both covered by health insurance. On the other hand, personal accident insurance does not cover pre and post hospitalization expenses.

Death Benefits

In case of the death of an earning member, his or her family suffers financially. Having a personal accident insurance policy is a must, especially for frequent travelers and drivers. The nominee gets the death benefits if the policyholder dies in an accident.  Health insurance is not useful in this case. This is the reason why you should have a personal accident insurance plan in addition to a health insurance policy. A health insurance plan covers you for illnesses and personal accidental plan against accidents.

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