personal accident insurance

Personal Accident Insurance

Personal Accident Insurance: Get covered against accidental death and disability with personal accident insurance. Buy the best plan at PolicyBazaar and save your medical expenses.

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Better Safe Than Sorry

Did you know that in recent years you have become more prone to accidents than you would have ever imagined? Some of these alarming statistics reveal that:

  • According to National Crime Records Bureau (NCRB), total 4,00,517 people died of accidental deaths in 2013, a rise of 14% over the previous year.
  • According to the World Health Organization (WHO), death rate per 1,00,000 population for road traffic accident was 18.9 in 2013.
  • 1214 road accidents occur every day in India.

While minor accidents can indispose you temporarily, major accidents can severely impact your life and well-being. A sound insurance plan to protect you from financial repercussions of meeting with an accident has become a necessity. The value of human life is immeasurable, but with a view to provide some relief to the injured person or family members, insurance companies have devised personal accident insurance policy. It refers to an insurance which offers compensation in case of death, bodily injuries, total/ partial disability or mutilation resulting from an accident caused by violent, visible and external means. The types of events that are covered under accidental insurance are rail, road and air accident, injury due to collision or fall, burn injury, drowning etc. The personal disability and accidental death covers help guard the family against any financial repercussions if the unfortunate comes to pass. A person should buy the policy that covers all eventualities from temporary partial disability to accidental death, and safeguard the family’s future.

types of personal accident insurance

Personal accident policy can be further divided under two sub-heads

  • Individual Accident Policy:

    This policy covers an individual in the event of any accident. The incident may cause partial or total disability, whether temporary or permanent, or even accidental death.

  • Group Accident Policy:

    As the term itself suggests, it is not meant for individuals and is taken by employers for its employees. Depending on group size, discount on premium might be offered as well. It is a good incentive/ value added benefit for small organizations as it is available at low cost. However, this is a very basic cover and may not offer benefits like that of individual plan. In most of these policies, major events such as partial or total disability, whether temporary or permanent, or even accidental death, are covered up to a specified limit for the overall group with specific sub-limits for an individual. 

Accident insurance policy can protect the policyholder and his family from the financial concerns such as loss of income and medical expenses that unforeseen accidents lead to. It is essential people understand the features, benefits and the necessity of disability and accidental death insurance policies a bit more in detail.

accident coverage insurance

Coverage given under Personal Accident Insurance Policy

Buy personal accident insurance policy to enjoy following coverage-

  • Accidental death: The sum assured under this plan is payable if death occurs from an accident.
  • Accidental disability: It indicates that the policyholder is disabled either partially or wholly.
  • Accidental dismemberment: It indicates that a part of the policyholder's body has been severed or dismembered. It means, if the policyholder loses his hand or leg or eyes in an accident, then he would be eligible to get a claim under accidental dismemberment.
  • Terrorism act: Injuries afflicted due to terrorism acts are also covered.
  • Daily allowance during hospitalization: It gives monetary relief to a patient while he undergoes treatment at the hospital.

benefits personal accident insurance

Benefits of Accident Insurance Policy

Pause for a moment to think, what will happen to your family if you become permanently disable due to an accident? There would be no earnings but bank EMIs, medical costs and other expenses will keep rising. To deal with such situation, it is important to buy a personal accident insurance policy. To give you a better understanding, we have listed the top benefits of having insurance-

  • Family security
  • No requirement of medical tests and documentation
  • Substantial cover at lower premium
  • Worldwide coverage
  • Can be bought for individually or family
  • Easy and certified claim process
  • 24x7 support service
  • Legal and funeral expenses covered
  • Child education benefit
  • Double indemnity for death/ disability while traveling in public transport
  • Highly customized plan

buy personal accident insurance

Who Should Buy Personal Accident Insurance Coverage?

Irrespective of your age, occupation and health, it is strongly advised to buy personal accident insurance coverage. In fact, you should buy this cover as soon as you start earning. It is more important for those who have taken personal loans, vehicle loans and mortgages because this would offer protection towards repayment of outstanding balance in case of any accident. Unlike life insurance policy, personal accident insurance premium will be decided by your occupation rather than age. Generally, there are 3 categories under which occupational risks can be segmented-

Doctors, Machine operators and Underground mines workers
Class 1= Low Risk Class 2= High Risk Class 3= Very High Risk
Accountants Cash carrying employees Journalists
Lawyers Builders People working in explosive industries
Bankers Contractors Mountaineers

How Much Accident Coverage is Enough?

Although it is tough to value the human life but some yardstick is required to fix the sum assured. The rule book says that it should be 100 times your monthly income. For example, if your current monthly income is Rs 10,000 then your cover should be Rs 10,00,000. This ensures that all possible eventualities such as loan repayment, children’s education and marriage, regular income for the spouse are taken care of in the event of any permanent disability or even accidental death.

Major Inclusions and Exclusions of Accident Insurance

Educating yourself about terms and conditions before taking an insurance policy always works in your favor. So have a quick glance over what is covered and not covered under the policy.

Accidental death Natural death
Permanent total/ partial disability Pre-existing disability or injury
Accidental dismemberment Child birth or pregnancy
Medical expenses/ hospitalization charges Suicide or self injuries
Child education support Non-allopathic treatments
Life support benefit Influence of intoxicants
Burns, broken bones and Ambulance Committing a criminal act, or being involved in war activities Suffering from mental disorder
Daily allowance Participating in naval, military, air force, adventurous or sports activities

accident insurance claim

How to File Accident Insurance a Claim?

To initiate claim process, one needs to inform the insurer about the event within the time frame specified by the company. You might be provided with a claim reference number. The following information is required to be submitted to the insurer when intimating your claim-

  • Your contact numbers
  • Policy number
  • Date and time of accident
  • Name and contact details of insured person who is injured
  • Location of loss
  • Brief description on how the accident/ loss took place with its location details
  • Extent of loss

It is essential that these details are known to the family members also as an unfortunate event such as an accidental death may put them in situations where they are unaware of what to do next.

In case of Accidental death/ disability claim, following documents are required to submit-

  • Death certificate
  • Post mortem report
  • FIR report
  • Medical certificate
  • Medicine bills

As a necessary precaution, policyholders can make sure that these details are kept for future reference of the family members so that they are not left helpless in case an unfortunate event leads to a coma or even accidental death.

accidnet insurance help

How Can PolicyBazaar Help You?

Just as you care about what would happen to your loved ones after your death you should equally think how would they deal if you met with an accident or become permanently disabled or paralyzed? Prepare yourself for the unexpected situations with a right personal accident policy. We, at PolicyBazaar offer a range of personal accident insurance plans of different companies that can be tailored to the divergent needs of a client. Beyond directing you to the best insurance policies available, PolicyBazaar additionally facilitates the further steps you need to take in order to buy the plan chosen.

  • The Need for a Personal Accident Policy

    Life is uncertain. The whole idea of taking insurance is to protect oneself and one’s family from uncertainties and eventualities. A life insurance policy covers the risk of accidental death and a health insurance policy provides cover for hospitalisation expenses in case of an illness. One is likely to believe that life insurance and health insurance cover all the insurance requirements of an individual, however, this is not true. A personal accident cover that takes care of events such as accidental death and disabilities are a must.


    Accidents are undesirable, unexpected and unplanned incidents which may cause physical injury, disability and even accidental death. Accidents happen without prior intimation, when one is least expecting such an event. They become stumbling blocks in leading a normal life and often compromise the ability to earn a living. Personal accident policies are meant for such situations and plug this important gap in one’s insurance portfolio which is not adequately covered by a life and health insurance policy. Personal accidental death or disability covers help the insured to provide an extra layer of protection to their loved ones in case they already have an insurance cover like an endowment policy.


    A personal accident policy provides financial support to the policyholder if he or she is disabled after an accident, irrespective of the magnitude of the mishap. Personal accident plans cover the insured against disability, accidental death and dismemberment due to an accident. Total and partial disability, both are covered, which usually affect one’s ability to earn income at the same level before the accident. A life insurance policy does not typically cover such circumstances. Moreover, a health insurance policy or mediclaim only provides cover for hospitalisation expenses and not for events such disability or accidental death.


    The best personal accident insurance plans in India help the families and dependent members of the insured cope better with the emotional loss by providing them much needed financial support in times of need when the worst such as an accidental death transpires. In case of disability, the policyholder is provided compensation for loss of income caused by accident. A personal accidental death and disability cover brings peace of mind as it guards against the most unfortunate events.

    Other benefits include accident hospitalisation, hospital cash allowance, reimbursement of ambulance cost etc.

  • Primary Features of Personal Accident Insurance Policy

    A personal accident policy is designed to provide compensation for accidental injury resulting in accidental death or disablement covering four major events:

    Accidental Death:

    In case of accidental death i.e. death due to accident or accidental physical injuries during the policy period, the entire sum insured is paid to the nominee mentioned in the personal accident policy. There are certain documents that need to be shown in case of accidental death, and these have been shown elsewhere in the page.

    Permanent Total Disablement:

    In the unfortunate event of physical injuries in an accident resulting in permanent total disability of the insured, the entire sum insured under the personal accident policy is paid to the insured policyholder.

    Permanent Partial Disablement:

    In the unfortunate event of physical injuries in an accident resulting in permanent partial disability of the insured, usually a certain percentage up to 100% of the sum insured is paid to the insured person. The reimbursement amount under the personal accident policy is determined by the extent of loss or disability.

    Temporary Total Disablement:

    A payment is made if the insured has an accident that may result in temporary disability and confinement to home. A weekly payment, subject to a maximum limit, is paid to the policyholder to tide over the short term crisis when he or she is unable to undertake work or employment for a few weeks or months, or if it leads to a loss of income.

  • Additional Features of Personal Accident Insurance Policy

    A personal accident policy may also cover the following expenses in addition to the four primary ones mentioned above:

    Hospital Daily Cash:

    A daily cash allowance is paid to the insured for hospitalisation due to an accident. This is limited to a certain number of days specified in the terms and conditions of the personal accident cover.

    Ambulance Expenses:

    The personal accident policy reimburses the ambulance charges incurred to ferry the insured post-accident to the hospital.

    Transportation or Repatriation of Mortal Remains:

    In the unfortunate event of accidental death, the nominee receives an amount towards transportation of the mortal remains from the accidental death site to hospital, residence or cremation ground. This also includes the cost of religious ceremonies related to cremation.

    Broken Bones:

    If the physical injuries to the insured result in fractured bones or accidental bone damage and not in permanent disability or accidental death, a fixed compensation is payable under the policy.

    Burns:

    If an accident results in hospitalisation of the insured for the treatment of burns, a certain percentage of the policy sum insured is payable.

    Family Transportation Allowance:

    This applieswhen an accident results in the confinement of the principal insured to a hospital quite far (defined in terms of specific number of kilometres) from his or her residence. In such instances, the actual transportation expenses incurred by the immediate family member on the recommendation of a medical practitioner, to reach the insured person are reimbursed. The total amount thus reimbursed is subject to a maximum amount specified in the policy.

    Education Benefit:

    In case of accidental death of the insured, the cost of education of dependent children is covered under the policy up to a specified limit. This cost covers the sum that the insured may have paid if his accidental death had not occurred.

    Loan Protector:

    In the event of accidental death or permanent total disablement of the insured, a lump sum amount specified in the policy schedule is paid. This helps tide over difficulties from loan repayment that would not have occurred if the accidental death had not come to pass.

    Adaptation Allowance (also known as Home Alteration and Vehicle Modification Benefit):

    In case an accident results in permanent total disability or dismemberment, money has to be spent to modify one’s house and/or vehicle to make it disability friendly. Most personal accidental death policies cover this amount. There is usually an upper limit to the amount that is reimbursed.

     
  • Group Personal Accident Plan

    Many companies offer personal accident insurance to their employees through a group cover. More often than not, such policies have a basic cover for accidental death or disability and do not provide the same benefits available under a standalone policy. The rate of premium for group personal accident policy is relatively less as insurance companies offer a discount depending on the size of the group.

    An individual can opt for a personal accident policy if he or she can afford it and if the company's group policy cover is insufficient.

  • Tax Benefits Under a Personal Accident Policy

    Section 80D of the Income Tax Act 1961 does not provide any tax benefit for premium paid for personal accident plans that insure against any physical disability, dismemberment or accidental death. However, it is important to understand that the primary reason for buying any kind of insurance is protection and safety. Insurance decisions should never be driven by tax considerations.

  • Personal Accident Plans – Final Take

    Personal accident plans are clearly successful in plugging a gap in an individual’s insurance portfolio arising from accidental death or disability due to accidents. However, the truth is that even the best personal accident insurance plans in addition to life and health insurance policies do not cover one from disability due to a natural illness and natural causes. For these, the insured can opt for additional optional riders such as critical illness rider.

    The maximum sum insured amount varies from one personal accident policy to another. Also, people looking for a disability or accidental death cover should consider any sub-limits that may exist in the plan. If the amounts seem inadequate under the disability or accidental death policy, one can alternately purchase an accidental death or disability rider on one’s insurance plan in addition to the maximum available personal accident cover. The catch here is that such an accidental death or disability rider only covers permanent total disability and not partial disability. As such, considering the limitations, a personal accident policy makes actually work out better.

Insurer Plan Name Hospitalization FamilyCover Ambulance PTD PPD Issuance
Max Bupa Health Insurance Health Assurance- Personal Accident Hospi-Cash provided covers upto 2 children Not covered covered upto 125% of Sum Assured covered from 25% to 100% of Sum Assured e-Policy
Bharti AXA General Insurance Personal Accident Superior Hospi-Cash of Rs 1000 per day for 30 L cover & upto 20% of Sum assured for 20 L and 30 L cover covers individually Not covered covered for 1.5 times of Sum Assured covered from 2% to 75% of the Sum Assured Instant e-Policy
HDFC ERGO General Insurance Individual Personal Accident (IPA) Hospi-Cash provided     covered upto 100% of Sum Assured   Instant e-Policy
Religare Secure 1 - Personal Accident Covered in Add-on Rider covers individually Not covered covered from 50% to 100% of the Sum Assured covered from 2% to 75% of the Sum Assured e-Policy
Secure 3 - Personal Accident Covered in Add-on Rider covers individually Not covered covered from 50% to 100% of the Sum Assured covered from 2% to 75% of the Sum Assured e-Policy
Apollo Munich Health Insurance Company Ltd. IPA-Standard Not Covered   Rs. 2000 covered from 50% to 100% of the Sum Assured covered from 2% to 75% of the Sum Assured e-Policy
border-left: none>IPA-Premium Not Covered   Rs. 2000 covered from 50% to 100% of the Sum Assured covered from 2% to 75% of the Sum Assured e-Policy
The New India Assurance Co. Ltd. E_Personal Accident Hospi-Cash of Rs.200 per day for 50 days Covers individually Not covered upto 100% of Sum Assured upto 50% of the Sum Assured e-Policy
Liberty Videocon General Insurance Co. Ltd Group Personal Accident Hospi-Cash of Rs.500 per day for 30 days Covers individually Not covered upto 100% of Sum Assured covered from 2% to 70% of the Sum Assured e-Policy

What is the Eligibility of Personal Accident Insurance?

Ans:

Children above the age of 5 years and adult up to 65 years are eligible for the personal accident insurance plan. Children are covered for Rs1/ basic and Rs1/-Lac wider, whereas if the person is below 65 years he or she can be covered for the highest SI of Rs 1 Lac.

What are the documents needed for a claim?

Ans:

Read below to know the mandatory documents required for claiming the benefits of the policy:

a.) Temporary total disablement

  • Claim form
  • Medical certificate from the doctor
  • Leave approval from the employer
  • Discharge summary

b.) PTD & PPD

  • Claim form
  • Medical tests
  • Certificate of disability from the doctor

c.) Death Claim

  • Claim form
  • FIR, post-mortem report
  • Death certificate

d.) Medical Expenses

  • Hospitalization bills
  • Discharge summary
  • Medicine prescription

How Personal Accident policies are different from personal guard?

Ans:

Personal guard insurance plan is the personal accident policy which covers up to the highest compensation of 125% of the total amount insured under the policy benefits. There is no extra premium charged for this benefit.

When can you Claim for the Benefits after Buying the Policy?

Ans:

You can claim the benefits of policy whenever you need it. There is no fixed time period to claim the benefit the policyholder can claim for the benefits whenever he meets any unfortunate event like the accident.

Why You Should Buy Personal Accident Insurance?

Ans:

Life is uncertain and it needs certain measures that can make you feel safe and secure at every point of life whether you are going on vacation or enjoying a long drive with your loved ones. Don’t worry about the financial need when you are not able to earn due to any accident injuries or disability, because the personal accidental insurance covers all the expenses related to treatment of policyholder and also provide financial aid if the person is not able to work for the time or lifetime due to its permanent or partial disability respectively. It also helps to provide family security at the lowest premium with easy and quick claim process. These plans are highly customized which can be altered according to your need.

What does it cover?

Ans:

Personal accident insurance makes you feel free as it covers you against death or damage caused by any unfortunate event for example accident, explosion and terrorist attack. This insurance policy provides the full coverage for expenses incurred in the treatment of injuries caused by any unfortunate event. It also covers the loss of regular income due to an accident. The nominee receives the amount insured in some of the cases given below:

  • When the policyholder dies in an accident.
  • If the policyholder is injured and becomes permanent or partial disable the policy ensures the policyholder with the loss of income and also take care of regular expenses incurred in treatment.
  • Injuries or damage caused by the terrorist attack is also covered under this policy.
  • If the policyholder loses any of his body parts, he or she is eligible to get a claim under accidental dismemberment.

Why Choose Policybazaar for Personal Accident Insurance?

Ans:

  • Expert Guidance or Advice: Policybazaar advises you on which health insurance policy to choose out of a wide spectrum. Our health experts offer you unbiased opinions to our customers wherever and whenever they experience a need for guidance, helping them opt for the best-fit policy.
  • Thorough Assistance: Our job is not just to offer you the best-fit plan, but assist you throughout, i.e. respond to your queries, provide you details of the plans offered by different insurers, and any post-sale assistance on call.
  • Quick Wrap-up/Minimum Paperwork: Policybazaar helps you quickly wrap-up your policy purchase and delivers the policy document to your inbox within a very short time, making it accessible to you on the go.

Do I need Person Accident Insurance?

Ans:

Life is full of risks when you are traveling to your destination. An accident may result in several outcomes, viz. partial/permanent disability, or even death. Personal accident insurance is recommended for anyone who travels too much not just for life support, but for financial support as well, especially in case of loss of income.

What are the benefits of buying Personal Accident Insurance?

Ans:

  • High Coverage: considerable coverage for the policyholder
  • No Medical Check-up Required: buying this insurance requires no medical examination
  • Children Education Benefit: coverage is provided for children education after accidental death/disability resulting in loss of income
  • Lifestyle Support: financial support to the family, in case of accidental death/disability resulting in loss of income
  • Death/Disability Coverage: double coverage for death/disability due to an accident caused by public transport
  • Coverage for Increasing Healthcare Cost: keeping an eye on increasing healthcare cost, coverage is provided for medical treatment against inflation
  • Group Insurance Benefit: discounted premium prices for group insurance
  • Plan Flexibility: coverage is offered for single and family

What is not covered by Personal Accident Insurance?

Ans:

One must keep in mind the exclusions of a personal accident insurance policy while following points are generally not covered:

  • Any pre-existing injury or disability
  • Use of alternate medical treatments (e. Unani, Ayurvedic, Homeopathic etc)
  • Any self-harming acts (e. Suicide or purposeful overdose)
  • Accidents resulting from drunk driving or use of other intoxicating substances
  • Accidental injuries/death from illegal activities
  • Accidental injuries/death due to involvement in a war
  • Accidental injuries/death due to mental disorder
  • During pregnancy/childbirth

What is covered by Personal Accident Insurance?

Ans:

  • Accidental Demise: the nominee receives the sum insured, in case the policyholder dies in an accident
  • Permanent/partial disability: insurer provides coverage for the loss of income, in case of permanent/partial accidental disability
  • Dismemberment: insurer provides coverage for the loss of income, in case of accidental dismemberment (loss of limb)
  • Medical Expenses: insurer bears medical expenses incurred for treatment of accidental injuries to the policyholder

What is Personal Accident Insurance?

Ans:

An insurance policy that provides coverage for expenses incurred for treatment of injuries that occurred in the event of an accident caused by road/air/rail collision, fire, explosion, and so forth. Personal accident insurance offers assured coverage for medical expenses and with respect to the loss of income due to an accident.

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