Updated on: 16 Jan 2020.
Life is unpredictable and any mishap may occur to anyone. You must have a financial cover to tackle any unfortunate event. You should go for an insurance policy that provides a complete cover against any mishap. You may opt for personal accident cover or health cover to meet financial expenses arising from the treatment of illness or injuries that happened.
Personal accident cover and health cover are helpful in different scenarios and you must know the difference before buying a plan.
Personal Accident Insurance vs Health Insurance
There are some key parameters that differ from a Personal Accident Cover from a Health Cover.
A Personal Accident Policy provides cover against accidental death & permanent/partial disability caused due to an accident. On the other hand, a Health Insurance Policy covers costs that are arising from any unforeseen hospitalization/ medical procedures.
Nowadays, medical treatment has become quite expensive and health insurance gives you a financial guard against medical expenses on the treatment of illnesses, injuries, hospitalization, and other health-related problems.
When opted for a personal accident policy, you are covered for medical expenses arising due to accidental injuries only. So, a personal accident policy provides cover against accidental injuries, but a health insurance policy provides a comprehensive cover for all sorts of injuries & illnesses.
Pre & Post Hospitalization Expenses
Pre hospitalization cover includes medical expenses that occur due to illness for 30 days before the insured person was hospitalized and Post hospitalization covers medical expenses that occur due to illness for 60 days after the insured person was discharged.
Health policy covers pre & post hospitalization expenses for a specific number of days. Some health plans cover this up to a percentage of the sum insured opted while a personal accident policy does not provide any such cover.
Death is inevitable but no one can predict. With a personal accident policy, you are covered against accidental death and your nominee/beneficiary receives 100% of the chosen sum assured.
A health policy does not provide death coverage.
An accident may also bring Permanent Disability (Total/Partial) or Temporary Disability (Total/Partial). A personal accident insurance policy provides a cover for disabilities caused due to an accident. Policyholder can choose a specific percentage of the sum insured as disability cover.
However, a health policy typically does not cover any disabilities caused.
Riders help boost benefits of an insurance policy and it is advisable to pick wisely.
With a personal accident policy, you can opt for riders such as Hospitalization Expenses, Broken Bones, Hospital Daily Cash, Child Education Benefit & Ambulance Allowance.
With a health insurance plan, you can opt for riders such as Critical Illness Cover, Hospital Cash Cover, Room Rent Waiver, Personal Accident Cover & Top Up/Super Top Cover.
A quick review of differences between Personal Accident Cover & Health Cover
|Personal Accident Insurance||Health Insurance|
|Medical expenses towards accidental injuries are covered||Medical expenses towards illness or injuries sustained are covered|
|Pre & Post Hospitalization expenses are not covered||Pre & Post Hospitalization expenses are covered|
|Death due to an accident is covered||Death cover is not available|
|Disabilities sustained due to an accident are covered||Disabilities are not covered|
|Riders such as Broken Bones, Hospital Daily Cash, Child Education Benefit & Ambulance Allowance are available||Riders such as Critical Illness Cover, Hospital Cash Cover, Room Rent Waiver, Personal Accident Cover & Top Up/Super Top Cover are available|
Major insurers offering Personal Accident Insurance Plans
|Name of Policy||Age Limit||Cover||Add-on Covers|
|Bharti AXA SmartIndividual Personal Accident Insurance Policy||3 months to 65 years||Accidental Death,
Permanent total/ partial disablement, temporary total disablement, transportation of mortal remains, Education grant for children
|Hospital Daily Cash, Accidental Medical Expenses, Double Benefit (on Death/PTD), Legal Expenses|
|Bajaj Allianz Personal Guard||18 years (5 years for Child) to 65 ?years (21 years for child)||Accidental death,
Permanent total/partial disablement,
Temporary total disablement,
Children?s Education Bonus, Transportation of mortal remains
|Medical expenses, Hospital confinement|
|HDFC ERGO Personal Accident Policy
|18 years to 65 years (70 years for parents)||Accidental death, permanent total disability, broken bones, Burns||Accidental Death, Ambulance Cash, Hospital cash|
|Religare Secure- Personal Accident Insurance||18 years (91 days for child) to 70 years (24 years for child)||Accidental Death,
Permanent total/partial Disablement, Fractures, Burns, Reconstructive surgery, Repatriation of mortal remains, Child education
|Daily Allowance, Hospitalization Expenses, Mobility cover, Compassionate Visit|
|SBI Individual Personal Accident Insurance Policy||18 years (3 months for child) to 65 years (23 years for child)||Accidental Death,
Permanent total/ partial disability, temporary total disability
|Hospital confinement allowance, Ambulance charges (including air ambulance)|
Now you have a clarity of what type of benefits both personal accidental policy and health insurance plan take care of. It’s important to have a balanced approach to take financial cover for both uncertain events that may happen anytime. Find the policy that best suits your requirements or take a basic policy and load them with some top-ups to reduce your expenses without compromising with insurance cover.
Harjot Singh Narula, Founder & CEO,? www.comparepolicy.com
(Harjot Narula is founder and CEO of?comparepolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies like HDFC Life, Aegon Life, Max Life, Bajaj Allianz and others. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.)