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Difference Between Health Insurance and Personal Accident Insurance

Team AckoDec 27, 2020

Health insurance and personal accident insurance help you in the time of a medical emergency. The latter one is helpful in a specific situation of an accident while a health insurance policy provides an all-round coverage. Let's understand the difference between health insurance and personal accident insurance in detail.

Difference Between Health Insurance and Personal Accident Insurance

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Health vs Personal Accident Insurance:

A health insurance policy can provide an umbrella of coverage to the policyholder as well as the family members. While a personal accident policy is useful only for the policyholder when bought with a motor insurance policy or as a separate plan.

Here is a table that shows the differences between Health Insurance and Personal Accident Insurance:

Sr. No Parameter Health Insurance Personal Accident Insurance
1 General meaning Health insurance provides coverage for medical expenses in various situations. Personal Accident Insurance provides coverage for injuries specifically due to an accident.
2 What is the nature of the plan? A full-fledged health insurance policy. An add-on covers.
3 Is additional premium required? No, the premium is required only for the base policy. Yes, an additional premium is required to buy this add-on.
4 Option to buy Add-ons Yes No
5 Tax benefit Yes No (only on the base plan)
6 Coverage for Pre-existing diseases Yes, after a waiting period No
7 Maternity Benefits Yes, can be bought as an add-on No
8 Coverage for Critical Illness Yes, can be bought as an add-on No
9 Coverage against collisions Hospitalization Full coverage
10 Types of plans Group, family-floater, individual health insurance, etc. Personal accident covers can be bought with Motor and Health insurance plans
11 Sum insured Can range between Rs. 5 to 50 Lakh or beyond depending upon the type of plan chosen. Can range between Rs. 2.5 Lakh to 1 crore depending upon the sum insured chosen
12 Waiting period 9 months to 4 years Not applicable

Conclusion

Health and personal accident insurance provide financial help during a medical emergency. One does not have to use saved money or take loans to pay hospital bills if they proactively buy health insurance as any medical emergency is unpredictable be it a health issue or an accident. Buying a personal accident cover with a base health insurance policy will extend the coverage to include the full cost of medical treatment against accidental damage. For example, accidentally falling from a great height, drowning, etc. 

Frequently Asked Questions

These are some commonly asked questions about health insurance and personal accident cover:

What is the major difference between health insurance and personal accident insurance?

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A health insurance policy provides multiple coverages related to a medical emergency for various situations. Whereas a personal accident insurance plan is an add-on that one can buy with a health or motor insurance policy. This is the one major difference between health insurance and personal accident cover.

What is personal accident insurance?

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Is a personal accident covered under health insurance?

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Is it necessary to buy separate personal accident insurance?

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Can I buy health insurance and personal accident insurance from the same company?

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Which insurance is better at health insurance vs personal accident insurance?

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How to find the best personal accident insurance policy?

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How much does a health insurance policy cost?

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Which are the major health insurance schemes in India?

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Which benefits does personal accident insurance provide?

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Is it a good idea to buy health insurance online?

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