Life is uncertain, and accidents can happen anytime. The aftermath of accidents, especially severe ones, is painful – not just physically but also financially. To safeguard yourself and your family from financial losses in case of an accident, you need to invest in a personal accident insurance policy. You can choose from a wide range of the best personal accident insurance policies offered by reputed and top-rated insurance companies in India.
Personal Accident Insurance Policy
A personal accident insurance policy is a fixed-benefit insurance policy. It covers the costs associated with partial and/or total disability and helps policyholders manage their everyday expenses due to income losses caused by disabilities. The policy may also cover hospitalisation costs such as room rent expenses, ICU charges, surgeons’ fees, etc. Additionally, you can avail of a daily cash allowance to pay for hospitalisation and domiciliary expenses while receiving treatment for accidental injuries. If, despite the treatment, the policy holder succumbs due to injuries inflicted in the accident, the insurance provider pays the lumpsum death benefit to the nominees, after deducting the expenses incurred during the treatment course.
Features Of Personal Accident Insurance Policy
The best personal accident policy offers the following features
- No-claims Bonus
For every claim-free year, you can enjoy a cumulative bonus that enhances your sum insured. You can avail of a maximum of 50% of the sum insured for five continuous claim-free years.
- Tenure Discount
You can stay protected against premium hikes by opting for longer tenure policies ranging from one year to three years, depending on the insurer’s policy terms.
- Global Coverage
The best personal accident policy feature is that of worldwide coverage. You can file your personal accident insurance claims even if you are injured in an accident in an overseas territory.
- Free-look Period
After buying the personal accident insurance policy, you have up to 15 days to change your mind, look for another policy and cancel the existing policy without incurring cancellation charges.
- Lifetime Renewability
Insurers are not permitted to cancel your policy after you reach a certain age. You can enjoy the lifetime renewability benefit with your accident insurance policy.
- Easy Onboarding
You can buy the best personal accident insurance policy online without undergoing medical tests. The process requires minimal to no documentation.
- Affordable Premiums
Personal accident policies are generally affordable, which makes them an ideal addition to your insurance investments.
- Highly Customisable
With a plethora of add-ons available, you can purchase the best personal accident insurance policy at a nominal price.
Types Of Personal Accident Insurance
A Personal accident insurance policy is usually categorised into two types:
- Individual Accident Insurance
Individual accident insurance covers a single person against accidental injuries. The policy covers costs associated with accidental hospitalisation, loss of limbs causing permanent disabilities and accidental death.
- Group Accident Insurance
Your employer may offer group accident insurance plans covering you in case of accidental injuries. Group plans typically provide only basic coverage, with lower sums insured and fewer benefits compared to individual insurance plans.
What Does Personal Accident Insurance Cover?
Accidents can cause severe injuries that can lead to disability or even death. The best personal accident policy provides financial assistance during such testing times. Depending on your chosen accident insurance policy, you may get coverage for the following.
- Temporary Total Disability
You can avail of this benefit if an accident causes temporary total disability, i.e., health conditions like limb fractures, limb braces, etc. Such conditions can be restored with medication, surgical procedures or other treatment courses, but over extended time periods.
- Permanent Partial Disability
Permanent partial disability refers to the permanent loss of one or more organs. Accidents can cause an individual to lose one or more limbs, vision, speech, etc. This disability does not affect the entire body; however, it is non-recoverable, and the individual is rendered partially disabled for their lifetime.
- Permanent Total Disability
Total disability can inhibit your ability to work and earn an income. The disability is untreatable by medication, surgery or other treatment forms. In times like these, you can provide financial support to pay for your and their expenses with the accident insurance policy’s lumpsum pay-outs.
- Accidental Death
In case of death due to an accident, policyholder’s can continue supporting their loved ones. Under a personal accident insurance policy, the insurer pays the sum insured amount to the policyholder’s nominees or dependents per the policy’s terms and conditions.
Some insurers cover second and third-degree burns resulting from accidents. Burns take time to heal, and during this time, earning an income is not plausible. Your personal accident insurance policy takes care of you and your family while you’re healing.
- Child Education Support
If an accident leads to permanent disability or death, your insurance provider pays for your child’s education expenses, per the policy’s terms. The policy covers the education costs of up to two children, and the insurer pays a fixed amount or percentage of the sum insured towards children’s education expenses.
- Ambulance Charges
Receiving immediate medical care after an accident is crucial. In case of life-threatening injuries, some insurance providers cover transportation charges to help reach the nearest healthcare facility so you can start receiving treatment at the earliest.
- Funeral Expenses
In case of accidental death, your personal accident insurance covers the cost of organising the funeral. Per policy terms, the insurer pays a percentage or fixed amount of the sum insured to the policyholder’s nominees.
Note that some insurers may offer one or more of the above inclusions as add-ons. Ensure you read the policy inclusions thoroughly.
What Does Personal Accident Insurance Not Cover?
Insurance providers typically will not make a lumpsum pay-out under the following circumstances:
- The policy does not cover disability or death arising from pre-existing diseases.
- Death due to natural causes does not fall under personal accident insurance, wherein the policyholder’s nominees do not receive the death benefit.
- Insurers do not cover injuries or accidental death due the policyholder’s involvement in wars, invasions, revolutions, usurpations, riots, civil wars, strife, etc.
- Insurers are not liable to cover costs associated with self-inflicted injuries and suicide attempts.
- If you switch to a job with occupational hazards, which can increase the risk of accidents and the same was not notified to or accepted by the insurer, the insurer will reject your personal accident insurance claim.
- The policy does not cover accidental injuries caused due to alcohol intoxication, consumption of drugs, and other harmful substances.
- Insurers are not bound to honour claims for injuries resulting from assault acts and criminal offences committed by policyholders. If such actions lead to the policyholder’s death, the insurer is not liable to pay the death benefit to the policyholder’s nominees.
- Personal accident insurance policy also does not cover disability or death from exposure to radioactive nuclear fuel.
- Injuries or death resulting from adventure sports and hazardous pursuits including, speed contests, bungee jumping, parasailing, skydiving, paragliding, mountain/rock climbing, etc., are not covered.
- Physical or mental infirmity or diseases that do not result from accidents are not eligible for lumpsum pay-outs.
Add-Ons To Buy With A Personal Accident Insurance Policy
The following are popular riders you can purchase for comprehensive personal accident insurance coverage.
- Accidental Hospitalisation
Since accidental insurance policies are definite benefit policies, wherein insurers pay a lumpsum amount, they do not typically cover actual hospitalisation costs. However, if you want coverage for hospitalisation costs, surgeon fees, room rent cover, etc., you can buy the accidental hospitalisation add-on rider.
- Daily Cash Benefit
You can avail of a fixed amount of the sum insured as a daily hospital cash allowance to pay for hospitalisation expenses. You generally get this coverage for a fixed number of days per the policy terms.
- Repatriation Of Mortal Remains
Upon the accidental death of the policyholder, their nominee can claim expenses associated with repatriating the remains back to the hospital, home or cremation ground.
- Broken Bone Benefit
Your insurer pays a lumpsum amount if you have fractured or dislocated your bones in an accident, provided the damages are not sustained due to adventure sports activities.
- Compassionate Visit
The lumpsum benefit allows you to cover domestic and/or international travel expenses of immediate family members who want to visit you in the hospital.
- Loan Protector
If an accident leads to a policyholder’s lifelong disability or death, the loan protector add-on rider provides a lumpsum pay-out to clear the policyholder’s existing debts.
The Need For Personal Accident Insurance
Due to the unforeseen nature of accidents, comprehensive coverage is necessary. The following are reasons why investing in the best personal accident policy is important:
- Provides Lumpsum Benefit
Personal accident cover comes with a lumpsum benefit. Your insurer pays the entire sum insured to help you cover the costs of numerous personal and family-related expenses. The policy also covers expenses incurred towards treating accidental injuries, like ambulance charges, hospitalisation bills, and so on.
- Protects Your Family
The repercussion of an accident impacts your family as well. Accidents can cause disability or death. As the family’s sole breadwinner, the lumpsum benefit comes to your aid when income is limited. You can continue fulfilling your financial obligations towards your family with personal accident insurance.
- Substitutes Income Loss
Temporary and permanent disabilities, whether partial or total, can limit your ability to earn an income. The lumpsum pay-out from the personal accident insurance policy helps you manage your expenses despite the loss of income.
- Secures Your Child’s Future
The personal accident insurance policy enables you to protect your child’s dreams no matter what. In case of permanent disability or death, income loss can affect your child’s higher education plans and subsequent future goals. With the personal accident cover, your insurer extends monetary benefits to your children as well.
- Globally Applicable
Most personal accident insurance policies cover accidents sustained in domestic and overseas territories. After assessing the documents, the insurer settles the claim in Indian currency. You can convert the applicable treatment amount to the foreign country’s currency and make the payment seamlessly.
Maximise Your Health Insurance Coverage With The Best Personal Accident Insurance Policy
Given the inflating medical costs, medical insurance is a necessity. It is a financial cushion you can fall back on when faced with unexpected medical emergencies. Standard health insurance plans generally cover medical expenses for numerous diseases and personal accident cover is usually not a part of the policy’s primary inclusions. However, you can benefit from the insurance policy for accident by purchasing the cover as follows:
- Stand-alone Policy
You can buy a stand-alone accident insurance policy in tandem with your health insurance plan. You can avail of comprehensive coverage for both, treatment costs of diseases and the lumpsum pay-out benefit in the event of disability or death due to an accident. You can customise the plan by purchasing add-ons like accidental hospitalisation, hospital daily cash, etc.
- Insurance Rider
Insurers also offer personal accident insurance as an add-on rider on top of your regular medical insurance policy. The rider comes with lumpsum pay-outs for accidental disability and death. You must pay an additional premium to purchase the accidental insurance rider. The benefit can help your family deal with financial crises with ease.
Best Personal Accident Insurance Policies To Buy With Health Insurance
Health insurance covers hospitalisation expenses for a plethora of diseases and conditions. You can make your plan more comprehensive by opting for one of these below-mentioned, best accident insurance policies from reputed insurance companies.
Niva Bupa offers comprehensive health insurance plans for individuals and families. You can purchase the ReAssure plan to enjoy sums insured of up to ₹1 Crore. The plan offers the best personal accident insurance policy as an add-on rider. The accident insurance policy offers a cover of up to ₹2 Crore, and a 100% of the sum insured pay-out in case of the policyholder’s accidental death. The policy also covers permanent total and partial disability and child education benefits. Besides the personal accident add-on, the ReAssure medical insurance policy covers a multitude of hospital expenses, organ transplants costs, ambulance charges, domiciliary care expenses, etc.
With the TATA AIG MediCare Premier plan, you can avail of the accidental death benefit featuring a 100% sum insured pay-out for nominees in case of the policyholder’s death. Other benefits under the MediCare Premier plan include high-end diagnostics, in-patient hospitalisation, pre and post-hospitalisation cover, AYUSH treatments, OPD treatments, e-opinion, compassionate travel, etc. The Premier plan offers sum insured options ranging from ₹5 Lakh to ₹50 Lakh. You can also get a 5% and 10% discount upon buying the policy for two and three years, respectively.
Activ Health Platinum Enhanced, Aditya Birla Health Insurance
Aditya Birla Health Insurance offers holistic medical insurance policies with facilities to add a personal accident insurance cover. One of the best personal accident policies, it includes the lumpsum payment clause for permanent total disability and accidental death due to accidents. With the Active Health Platinum Enhanced plan, you can get coverage for pre and post-hospitalisation expenses, modern treatments like robotic surgeries, oral chemotherapy, organ donor expenses, etc. The policy also comes with AYUSH coverage benefits.
ICICI Health Shield, ICICI Lombard
ICICI Lombard offers sums insured ranging from ₹3 Lakh to ₹50 Lakh with its Health Shield plan. By paying an additional premium, you can custom create the best accident insurance policy. The rider provides lumpsum pay-out in the event of an accidental death and permanent total disablement arising from accidents. The Health Shield base policy covers various expenses including hospital room rent costs, doctors’ fees, medication costs, diagnostic test costs, etc. Moreover, it covers organ donor expenses, air ambulance costs and offers complimentary health check-ups and unlimited reset benefits.
Star Comprehensive Insurance Policy, Star Health
You can avail of a comprehensive health insurance plan along with this best personal accident policy from Star Health. You can get lumpsum benefits against accidental death and permanent total disablement equivalent to the medical insurance policy cover. With Star Health, you can also avail of a seamless claim settlement process, thanks to the direct in-house claim settlement team. The Star Comprehensive policy provides cover for road ambulance as well as air ambulance expenses in case of accidents. Insurers offer the air ambulance cover as an add-on rider.
Health Premia is another offering from Niva Bupa that offers comprehensive coverage of up to ₹3 Crore. You can enhance your plan further by purchasing the best personal accident insurance policy. The optional cover offers a lumpsum pay-out in the event of permanent partial disability, permanent total disability and accidental death. Persons under a family floater plan can avail of this add-on if they’re aged 18 or above. The Health Premia plan covers pre and post-hospitalisation expenses for 90 and 180 days, respectively. You can also avail of cover for treatment of nine specific illnesses like cancer, primary pulmonary arterial hypertension, heart attack, etc., outside India.
Care Advantage, Care Health Insurance
With the Care Advantage plan, you and your family can avail of insurance benefits of up to ₹1 Crore. The policy comes with pre and post-hospitalisation cover of 30 and 60 days, respectively, a no-claim bonus of up to 50% of the sum insured as well as organ donor expenses. You can additionally purchase a personal accident insurance cover as an add-on rider and get lumpsum pay-outs in the event of permanent partial and total disability and accidental death. With Care Advantage insurance plans, you can opt for policies with sums insured ranging from ₹10 Lakh to ₹50 Lakh. The Care Advantage plan has no maximum entry age, making it ideal for families and senior citizens.
ProHealth Protect, ManipalCigna Health Insurance
ManipalCigna Health Insurance offers comprehensive medical insurance plans suitable for individuals and families alike. You can avail of a sum insured ranging from ₹2.5 Lakh to ₹50 Lakh, along with unlimited restoration benefits, cumulative bonuses and worldwide protection with ManipalCigna Health Insurance Plans. With their ProHealth Protect policy, you can add the personal accident insurance cover as an additional rider and secure your family’s future with its lumpsum sum insured benefit. You can also opt for comprehensive coverage that covers accidental death and disability, loss of income, children’s education and ambulance cover in the base plan. Additionally, you can customise your ProHealth Protect plan with a hospital daily cash add-on feature.
Digit Health Care Plus Policy, Go Digit General Insurance
Go Digit General Insurance offers simplistic and holistic health insurance products. Their Digit Health Care Plus plan covers a multitude of medical expenses, such as day care procedures, pre and post-hospitalisation expenses, in-patient treatments, ambulance charges, second opinions, etc. By enhancing your Digit Health Care Plus plan with the personal accident insurance cover, you can receive fixed payment benefits in case of disabilities. The rider also covers accidental death benefits. The base policy further covers medically necessary bariatric surgery and psychiatric illnesses. Moreover, you can avail of no-claim bonus benefits and long-term discounts of up to 10%.
How To Raise A Personal Accident Insurance Claim
Follow these three simple steps to raise a Personal Accident Insurance claim
- Inform the insurance provider
You or your family members need to inform the insurer at the earliest after being in an accident, explaining your intention to encash your policy. In case of the policyholder’s death, their nominees or family members may inform the insurer to get the claim process started within the stipulated timeframes, per the policy’s terms.
- Submit the documents
You must submit original copies of the following documents in case of temporary/permanent disabilities:
- Duly filled and signed claim form
- First Information Report (FIR) or Panchnama
- Identity and address proof documents
- Hospital discharge summary
- Hospital bills
- Medico-Legal certificate (MLC) issued by the hospital
- Certificate of disability issued by the state or central government’s medical board
- Termination/temporary discharge letter from your employer
In case of accidental death:
- Duly filled and signed claim form by the nominee
- Nominee’s identity and address proof documents
- Copy of death certificate
- FIR or Panchnama
- Post-mortem report, if applicable
- MLC issued by the hospital
- Hospital records
Your insurance provider verifies your claim. Upon successful verification, the insurer credits the sum insured to your bank account or issues a cheque or demand draft (DD). In case of claim rejection, the insurer sends a detailed repudiation letter explaining the reasons for claim rejection.
Should I buy an insurance policy for accident?
Yes, it is always better to buy an insurance policy for accidents along with a regular health insurance plan. You should especially purchase it if you're your profession involves accidental risks such as machine operators, mine workers, mechanics, etc.
What kind of disability do insurers cover under insurance policy for accidents?
Insurers cover you against partial and total, temporary and permanent disabilities of one or all limbs, complete paralysis of limbs, temporary or permanent loss of vision in one or both eyes, loss of speech, etc. You can check the full terms of coverage in the policy document.
Can I include my family members in a personal accident insurance policy?
Yes. You can extend the personal accident cover to your immediate family members. Some insurers may also permit you to add dependent parents to the accident policy.
What are the tax benefits applicable to personal accident insurance?
Personal accident insurance policies are not eligible for tax deductions.
How much personal accident insurance coverage should I opt for to cover my family?
Ideally, the best personal accident policy is the one where the sum insured is 100 times your monthly income. So, if your monthly income is ₹25,000, you should opt for a policy with a sum insured of at least ₹25 Lakh.
What is the eligibility for a personal accident insurance policy?
You can buy personal accident insurance plans if you are in the 18 to 70 years age group. However, the age criterion may differ across insurance providers.
Is there a waiting period or survival period in personal accident insurance?
No. Unlike indemnity and fixed benefit health insurance plans, accident insurance policies do not have a waiting period or survival period.
What is the difference between personal accident insurance and life insurance?
Similar to an accidental death benefit, life insurance plans offer lumpsum pay-outs upon the assured person's death. However, life insurance policies reimburse your nominees upon death only. With the best personal accident insurance policy, you get the lumpsum benefit due to partial or permanent disability as well – a feature not applicable to life insurance policies.