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Personal Accident Insurance 

Life is unpredictable, no matter how many precautions you take. Injuries and deaths due to accidents and mishaps are bound to happen. Statistics show that every 4 minutes, a person falls prey to death in road accidents in India. Millions of people die every year in accidents, while a thousand others suffer permanent injuries or disabilities.

These life-threatening incidents can happen to anyone. These accidents can not only cause death or disability but also leave massive financial repercussions on the life and family of the victim. In such cases, we can look forward to the financial support provided by insurance policies like a Personal Accident cover. Although it may not replace a life or health, it can serve as a means to provide financial assistance and a security blanket for the survivor and the dependents.

While a regular health insurance policy covers medical expenses due to hospitalization illness or injury, a personal accident policy offers financial compensation in case of death, disability, or injury due to accidents. This policy ensures the financial protection of the policyholder and his family during a financial hardship caused by an accidental mishappening. 

What is Personal Accident Insurance?

A Personal accident insurance policy is an insurance that provides financial coverage and benefits to the insured individual in case of an accidental injury leading to disability. Since accidents can even cause the death of an individual, a Personal Accident policy is also accompanied by a death benefit. It is known as an Accidental Death Insurance.

Personal Accident cover provides financial coverage for all kinds of medical and hospitalization costs incurred, arising due to any accidental injury. This insurance includes emergency treatment, hospital stays, and medical exams, transportation and ambulance charges, lodging expenses, etc. Also, a personal accident cover is less expensive than health insurance or a life cover as it does not cover pre-existing injuries or costs related to illnesses.

Personal Accident policy premiums depend on the insured person's age, location of residence, the extent of coverage, and the benefits that you have opted for in the policy. If you have a health insurance policy as well that has a high deductible, you can also opt for a personal accident cover. This will help you greatly with accidental medical care with a lump-sum amount in times of need. 

Why Should You Choose a Personal Accident Insurance Policy?

  • Personal Accident cover proves to be very beneficial in the event of an accident, death, impairment, permanent or partial disability or injuries, such as loss of eyesight or hearing, and fractured bones.
  • When the insured or the bread-winner of the family is not able to work because of injuries, the accidental policy comes in handy by offering a lump sum amount as a source of income to the family.
  • The accident insurance policy coverage helps the dependents by providing them with financial assistance.
  • These accidental insurance policies are cheap and simple and pay the specified sum assured when death or disability due to accidents occurs.
  • Another optional coverage provided by personal accident covers or accidental death insurances is a death or dismemberment cover on account of burns. This is especially beneficial for policyholders who work with hazardous sites or chemical plants.
  • Such accidental death insurance policies also cover unfortunate incidents covered by air, rail, or road.

Personal Accident Insurance Plan Comparison Table

Insurance Company

Plan Name

Policy Term

Sum Insured(Rs)

Bajaj Allianz Health Insurance

Personal Accident-Premium Personal Guard

1 year

10 lakh to 25 lakh

Bharti Axa Health Insurance

Personal Accident Insurance

1 year

Up to Rs 30 lakh

Care Health Insurance (formerly known as Religare Health Insurance)

Personal Accident Insurance-Secure 1-3 years  10 lakh to 50 lakh 

HDFC Ergo Health Insurance

Personal Accident Insurance policy

1 year

50 lakh to 5 crore

Max Bupa Health Insurance

Accident Care Insurance

1-3 years

5 lakh-2 crore

SBI Health Insurance

Individual Personal Accident Insurance

1 year

1 lakh to 1 crore

Star Health Insurance

Accident Care Individual Insurance

1 year

5 lakh to 15 lakh

Disclaimer: *Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The data for shown in the above table are for IRDA Annual Report 2018-2019.

Best Personal Accident Plans in India

Now we discuss some of the best Personal Accident Insurance plans available in the market offered by various insurance companies. Before purchasing any of these plans, you need to carefully study their features and benefits and then compare plans to find the best one as per your insurance requirements. 

Bajaj Allianz Premium Personal Guard Policy

This policy from BAJAJ Allianz provides extensive personal coverage in case of accidental death or injuries for the insured person as well as his family. It offers high coverage with sum assured cover ranging from Rs 10 lakh - Rs 25 lakh for an individual as well as a family floater. It also provides children education benefits and allowance for hospital confinement in case of accident/disability and lifetime renewability options.

Bharti Axa Smart Group Personal Accident Policy

This policy by Bharati Axa provides coverage for an individual as well as his family. It is often included in corporate/company policies as well. It can be claimed in case of the accidental death, permanent total/partial disability, and accidental dismemberment of the insured person. It also covers education support for children of the insured person in the case of his death or disability. This policy has not prescribed a lower limit for a personal accident. You can claim reimbursement for even a minor case of a fractured limb.

HDFC ERGO Personal Accident Insurance 

This plan by HDFC Ergo General Insurance includes worldwide coverage of accidental death or injuries. It also offers lifelong renewability of the plan in an individual as well as family floater cover. It provides adequate coverage in case of accidental death, permanent total disability, broken bones caused by accidents, and even burn accidents. Hospital cash and ambulance costs are also covered under the plan. There is no medical check-up required for availing this plan. 

Max Bupa Accident Care

This Personal Accidental Insurance policy from Max Bupa provides global coverage for accidental death or disabilities. You can get comprehensive accidental coverage from Rs 5 lakh to Rs 2 crore. This policy is available as an individual as well as family floater basis. The main features of the policy are not only providing coverage for accidental death and Permanent Total or Partial Disability, but also Temporary Total Disability. It also provides child education benefits and the HospiCash facility for the daily cash requirement at the hospitals.  

Care Health Personal Accident Secure Insurance (formerly known as Religare Personal Accident Secure Insurance)

This feature-rich policy from Care Health (formerly known as Religare) ensures that all concerns arising out of accidents are taken care of. It not only provides accident death and permanent total/ partial disability benefits, but also covers fractures, burns, and reconstructive surgery (CT Scans, MRIs, nurses). In case of an accident death / permanent disability of the insured person, his child’s education will be covered. There are also provisions for reimbursement of ambulance charges if occurred anywhere within India. 

SBI General Individual Personal Accident Insurance Policy

This policy by SBI General Insurance is designed to provide accidental insurance benefits to salaried individuals or businessmen and self-employed people. It covers accidental death and Permanent total disability along with their income loss to the insured person’s family. The policy provides add-on covers and cumulative bonuses for every claim-free year. No medical tests are required for policy purchase.

Star Health Accident Care Individual Insurance

Star Health provides a feature-rich policy that covers accidental death, Permanent and Temporary Disability due to an accident, and a Temporary Disablement weekly compensation up to Rs 15000 weekly for up to 100 weeks. It also provides coverage for winter sports activities. There is also a provision for an educational allowance for the policyholder's dependent children in case of his death or disability.

Types of Personal Accident Insurance

Personal Accident covers are available in two types

Individual Personal Accident Insurance

As the name suggests, this category is for individual policyholders and covers accidental death as well as short or long-term disability due to accidents. This is best suited for salaried or self-employed persons and for those who are engaged in business. It offers more benefits and coverage as compared to Group insurance.

Group Personal Accident Insurance

This kind of personal accident cover is provided as a group i.e., generally by employers for employees working under them. Group insurance plans offer basic or limited coverage. They do not include all the benefits available under a regular individual policy.

The type of personal Accident cover you want to purchase will depend upon your need and scope of accidental cover. 

Features and Benefits of the Personal Accident Plan

Personal Accidental Insurance plans come along with a myriad of features that make them unique. If you compare plans, you will come across various features associated with these policy covers. You need to carefully study the features offered by any plan before you make your final decision to purchase it. The significant features of a Personal Accidental Insurance plan are as follows:

Features of the Personal Accident Plan

Some of the unique features of this policy are mentioned below: 

  • Accidental Death Cover: If the policyholder dies in an accident, then his nominee gets accidental death cover as compeation up to the specific limit mentioned in the policy document. This accidental death insurance provides sufficient financial security to the policy holder’s family in times of the financial crisis.
  • Permanent Total Accidental Disability: In case of a disability arising out of an accident that makes the policyholder disabled for life, the policy provides for a certain % of financial assistance that depends upon the nature of the disability. Loss of speech or vision in both eyes and hearing loss in both ears is also considered as Permanent Total Disability and is also covered by the Personal Accident policy.
  • Permanent Partial Accidental Disability: In case of a disability that is partial, like, loss of hearing in one ear or vision loss in one eye, loss of one limb, the Personal Accident policy provides sufficient financial coverage to deal with this.
  • Hospital Transportation: Selective insurance companies provide this aspect of transportation benefit to a certain specified maximum limit. The insurer will reimburse any expenses incurred by the policyholder for reaching the nearest hospital by road, rail, or air up to a maximum limit.
  • Additional Benefits: Some insurance companies go the extra mile to provide extra coverage by funding the education and employment expenses of the dependents of the injured/dead individual, while some other offer allowances for education, home, or vehicle allowances to the dependent family members.
  • Free-look Period-Most Personal Accident policies provide a free-look period of 15 days. This time is given to the policyholder(s) to go through the provisions and clauses of the policy. If you are not satisfied with the product, you can return it to the company within the speculated time. 
  • Grace Period for Plan Renewals- Even for policy renewal, you get a grace period of 30 days without any discontinuation of the policy.

Benefits of the Personal Accident Plan

Now that we are aware of the various distinguishable features of a Personal Accident policy, let us go through the various benefits that you derive from them.

  • Provides Family Security- A Personal Accident policy strengthens your financial portfolio in times of unforeseen accidents. If you are the only earning member, it financially secures the future of your family members or dependents and prevents them from unnecessary financial burdens and strain.
  • Availability in Both Individual and Family Cover – Personal Accident policy covers are available in two categories, individual and family cover. It also includes a group coverage for the professionals under Group Personal Accident policy offered by an organization or employer.
  • Customizable Products- Most insurance companies provide customized plans for accidental insurance that can be amended and re-designed as per the need of an individual. You can choose your sum insured cover, opt-in or out of facilities, and avail some discounts under prescribed clauses.
  • Substantial Insurance Coverage – These plans provide adequate insurance covers at a lower premium than those of several health insurance policies. The insurance cover is sufficient enough to cover the expenses arising out of accidental permanent total/partial disability or accidental death.
  • Global CoveragePersonal Accident covers provide financial coverage for accidents happening not only in India in any city or location, but also taking place in any country abroad. These insurance policies provide worldwide coverage of accidents.
  • No Medical Tests Needed- While applying for such insurance covers, you need not undergo any medical test or screening or submit any special documentation. This makes the application process much easier and simpler.
  • Easy Claim ProcessYou can easily claim your settlement amount with the help of a claim process that is easy to register, process, and settle your claims
  • Efficient Customer Support – Most insurance companies provide a 24 x 7, 7 days a week online, and offline customer service. You can easily get in touch with their well-trained executives with your queries about the application, renewal, or claim settlements.
  • Additional Expenses Covered- Your accident cover also provides coverage for several types of additional expenses depending upon the company and the type of plan chosen. These include legal and funeral expenses, child education benefits in case of death of the policyholder and even double indemnity in case of death/ impairment while traveling in public transport like buses, trains, and airplanes or ships.

Inclusions of the Personal Accident Plan

Personal Accident Insurance policy comparison shows that almost all plans generally include the following features or inclusions. 

  • In case of the accidental death of the insured person, the insurance provider guarantees 100 % of the sum insured.
  • In case of permanent total disablement, like loss of both limbs, eyes, and ears, 100 % of the sum insured is guaranteed.
  • In the case of permanent partial disability, a fixed % of the sum insured will be paid.
  • In case of loss of one limb or one eye or partial disability suffered by the insured person, 50 % of the sum insured guaranteed.
  • This personal accidental insurance policy also covers funeral expenses in case of accidental death.
  • It will cover 2% of capital insured for transportation in case of accidental death outside the residence place, up to a certain limit as per the insurer norms.
  • ​ Personal Accident Policy can be customized and extended by paying an extra premium to cover additional medical expenses.
  • Some policies also provide for a daily medical allowance up to a specified maximum limit that covers hospital and medical expenses along with boarding and lodging of the dependent.

Exclusions of the Personal Accident Plan

Just as a Personal Accident Policy offers certain inclusions, there are some major exclusions that the policyholder should be aware of before purchasing it. They differ from company to company, so a careful study of the policy document is necessary.

Thus, most of the accidental insurance policies DO NOT cover:

  • Natural death expenses
  • Suicide attempts or self-inflicted injuries
  • Pre-existing disability or injuries
  • Accidents caused due to intoxication/under the effect of drugs and alcohol
  • Childbirth /pregnancy injuries or accidents
  • Participation in unsafe and dangerous or adventure sports
  • non-allopathic treatments
  • Accidents due to involvement in criminal acts 
  • Accidents due to mental disorder of the individual

Claim Process of the Personal Accident Plan

It is necessary to follow the prescribed procedure to claim the insurance cover in times of need or an accidental injury leading to disablement or more. The entire process has the following steps, which are discussed below.

  • Claim Registration: The very first step that you need to take is to register a claim with your insurance provider. You need to inform the company timely within 24-48 hours, as mentioned in the policy document. In case you don’t inform the company on time, it may lead to rejection of your claim. Once your claim is registered, you will get a CRN or a Claim Reference Number that you should quote in all claim-related correspondence with the company.

You also need to submit the following information to your insurance company while intimating a claim:

  • Your contact number and details
  • Policy number
  • Name and contact details of the injured person who is insured
  • Accident location 
  • Date and time of the accident
  • Brief description of how the accident took place 
  • The extent of the loss/damage

It is essential to give complete information to the company while registering the claim either over the phone or online.

  • Claim Approval: Once your claim is registered and you get the CRN and have also submitted the required documents, your insurance company will go through and scrutinize all documents. Your claim will be approved if everything is in place, and no information is missing or incomplete. In case additional information is required, you will be called for the same to submit the necessary documents within a specified time frame.
  • Status Update- The company will take 7-15 days to settle the claim as per their policies. During this time, they will update you with every step of the claim processing procedure through SMS alerts on your registered mobile number and email messages.
  • Claim Processing and Settlement- This is the final step, which takes the maximum time. Here all documents sent by you will be checked and verified for authenticity. Also, if it is an Accidental death or an impairment claim, you need to submit additional documents like:
  • Death certificate
  • Death Post-mortem report in case of death 
  • FIR report
  • Medical certificate from the admitted hospital practitioner
  • Medical bills

Once all the documents are thoroughly verified, the claim would be processed. The reimbursement payment will be made through NEFT to your registered bank account. 

Renewal Process of the Personal Accident Plan

It is essential to renew your Accident policy or Accidental death insurance policy to keep getting continuous protection. You cannot stay covered if the timely renewal is not done for your policy. Also, for every claim-free year of your policy, you get to enjoy certain bonuses and discounts.

The renewal process for any Personal Accident policy insurance is quick, easy, and similar to any general insurance policy. Here are the steps that you can follow for the policy renewal:

  • Access the official website of your insurance provider company
  • Select the "Renewal "option on the home page
  • Select your plan name from the list provided and enters your policy number or customer Id accurately
  • It will list the terms and conditions, which you need to go through and accept
  • It will finally prompt you to make the payment online through net-banking or your Debit/Credit card or other prescribed means. 
  • You can choose the desired mode of payment and make the necessary payment. 
  • Once done, your policy will be renewed, and you will get a message confirming the same. A soft copy of the official policy document will be sent to your email id. 

Eligibility Criteria of the Personal Accident Plan

  • Personal Accident cover can be taken up by any individual above 18 years of age. The maximum age for entry is fixed at 65 years for an individual. However, the age criteria vary from one insurance company to the other. For some insurance providers, it can also be between 5 and 65 years, which include children's insurance covers.
  • Any individual employed in adventurous or risky professions that may involve a greater probability of accidents should always consider buying a personal accident policy or an accidental death insurance plan to protect themselves and the family.  

How to Buy the Personal Accident Plan?

You can buy the desired Personal Accident policy insurance, either online or offline. 

How to Buy the Personal Accident Plan Online

  • Access the official website of your insurance provider company
  • You need to select the “Purchase Plan “option on the home page
  • You will be required to enter some information like your name, address, location, contact number, and email id, age, DOB, annual income, etc.
  • Next, you will be asked to select your sum insured amount and the number of persons to be insured.
  • Once you enter all the information, it will provide you with a list of quotes. 
  • You can compare plans and choose the plan that is closest to your requirements. 
  • You will be led to the payment page to make the premium payment after accepting the terms of the agreement.
  • You can choose the desired mode of payment through net-banking or your Debit/Credit card or other prescribed means and make the necessary payment. 
  • Once done, you will get a message confirming the same. A soft copy of the official policy document will be sent to your email id.

How to Buy the Personal Accident Plan Offline

Offline method requires you to visit a branch of the insurer, approach an insurance office, fill the application form and pay the premiums in person to buy this policy.

Documents Required to Buy the Personal Accident Plan

You can apply for a Personal Accident cover either online on the official website of the insurer or by visiting the insurance company’s office personally. Once you have selected the type of plan you want to buy, you would be required to submit copies of certain documents to your insurance provider. These documents are listed below:

  • Proof of Identity: Copy of Passport /driving license/PAN card
  • Proof of Address: AADHAR card copy/ passport /DL/Utility Bill copy, etc.
  • 2 passport size photographs each of every member insured in the policy
  • Any other document as requested by the insurer

FAQs

  • Q: What is the difference between Personal and Term Insurance?

    Ans: A term insurance policy covers the death of the policyholder due to natural reasons or accidental causes. In contrast, a personal accident policy only covers death and disabilities caused by accident. It will not cover natural death claims.

  • Q: What do you mean by a Group Personal Accident Insurance policy?

    An: A Group Personal Accidental Insurance policy provides accidental insurance to employees of a company for added protection. It provides limited medical coverage in case of accidents. In case of the accidental death of the insured, the total sum insured is paid to the nominee. In case of accident injuries and even burn injuries, a specific % of the sum insured is paid to the insured individual.

  • Q: Will my accident policy cover provide worldwide coverage?

    Ans: Yes, today, almost all personal accident insurance policy covers offer worldwide coverage for accidental death and injuries. Even in case of accidents while traveling overseas, your policy will cover you. However, you need to be aware of the policy terms regarding its scope of coverage.

  • Q: Are there any tax benefits under a Personal Accident Policy?

    Ans: No, there are no tax exemptions under Section 80D of the Income Tax Act 1961. Premium paid for personal accidental insurance plans do not qualify for tax deductions. However, make sure that you buy this type of a policy not for tax benefits but your protection and safety.

  • Q: Do I need to buy a Personal Accident Insurance policy cover even when I have a Health Insurance policy?

    Ans: While a health insurance policy provides comprehensive coverage for hospitalization expenses due to illness or injury, an Accidental Insurance policy only provides coverage in case of death or disability by accidents alone. A health insurance policy does not cover death, but a Personal Accidental insurance plan covers death and guarantees 100% of the sum insured in such cases.

  • Q: Can I have an extension to my policy?

    Ans: You can send an email to your insurance company specifying that you need an extension to your accident cover, along with a health declaration form mentioned in the policy document.

  • Q: Are there any riders available with Personal Accident Insurance policy?

    Ans: You can get riders for hospitalization expenses, daily cash expenses, and fractured bones, and even for child education allowances. These depend upon the policies of your insurance provider or if the insurer provides any of them.

Written By: Paisawiki - Updated: 09 October 2020
Disclaimer: Paisawiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.