Personal Accident Insurance vs. Health Insurance
Life is unpredictable and any mishap may occur to anyone. In the present scenario, people are living a hectic lifestyle due to competitive work environment and thus, they don’t have time to take care of their health. Health issues are also rising due to deteriorating environmental conditions is making even healthy persons prone to diseases. Driving on the road is also becoming unsafe for everyone due to bad condition of roads and carelessness of drivers.
You always wanted to secure your family’s financial standing, in case of any unfortunate event. It thus becomes quite imperative to buy an insurance policy that provides cover against any mishap. You may opt for personal accident cover or health cover to meet financial expenses arising from illnesses/injuries/disabilities or other medical condition.
Personal accident cover and health cover is helpful in different scenarios and you need to understand the difference before buying a plan.
Personal Accident Insurance
Accidents are unforeseen and can severely impact your life and well-being. Accidental mishaps just take a few seconds to turn your life upside down on emotional and financial grounds. A personal accident policy provides cover against accidental death & permanent/partial disability caused due to an accident.
A Health Insurance Policy covers costs that are arising from any unforeseen hospitalization/ medical procedures. So, with a health plan, you don’t need to worry about any expenses incurred by you or any family member’s medical treatment.
Difference Between Personal Accident Insurance & Health Insurance
There are some key parameters that differ a Personal Accident Cover from a Health Cover.
Medical Expenses: Nowadays, medical treatment has become a quite expensive and it is usually tough to afford a quality medical treatment. With a health cover, you can get a financial guard against medical expenses arising from any illnesses, injuries and other medical conditions. 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. A 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. A personal accident policy does not provide any such cover.
Death Cover: Death is inevitable and one cannot predict. Your unfortunate demise leaves your family in a deep shock and financial adversity, so getting a cover against accident would be quite helpful to deal with financial hardship. 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 any such coverage.
Disabilities Cover: Some accidents are so severe that bring disabilities such as Permanent Total/Partial Disability and Temporary Total/Partial Disability. A personal accident insurance policy provides a cover for disabilities caused due to an accident. The disablement is covered up to a specific percentage of the sum insured chosen. Disabilities covered under a personal accident policy may differ from one policy to the other. However, a health policy typically does not cover against any disabilities caused.
Riders/Add-ons Available: 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 policy, you can opt for riders such as Critical Illness Cover, Hospital Cash Cover, Room Rent Waiver, Personal Accident Cover & Top Up/Super Top Cover. These rider(s) may be available as an inbuilt with some policies.
Here is a snapshot of the 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||18 to 70 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’s 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 disablement, Broken bones, Burns, Hospital cash||Accidental Death, Permanent Total Disability, Broken Bones|
|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, 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)|
Insurance is taken to mitigate the risk and provide financial assistance to you and your family.Ideally, both Personal Accident and Health Insurance cover are important in their individual capacity to ensure a comprehensive coverage. Although Personal Accident Cover is a kind of health insurance plan, but there are some key differences. A personal accident policy is required to get a protection against accidental hazards such as bodily injuries, disablement or accidental death. You just need to assess the risk involved and choose the sum insured to put a financial cover, in case something unfortunate happens. A health insurance policy covers medical expenses arising from any illness/injury/medical condition. It does not provide cover for disablement or death caused due to an accident.
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.)