Home / Health Insurance / Articles / Difference Between Health Insurance and Personal Accident Insurance
Team AckoFeb 3, 2023
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.
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|
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.
These are some commonly asked questions about health insurance and personal accident cover:
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.
Personal accident insurance provides financial aid or insurance if a person meets with an accident. Under motor insurance, on-road accidents are covered and under health insurance multiple situations that result in injury, disability or death are covered.
No, one needs to either buy a separate personal accident insurance policy or buy it under health insurance as an add-on. Cost of hospitalization is covered under health insurance though. As far as motor insurance is concerned, buying a personal accident add-on for on-road injuries is mandatory by law.
Yes and no both. Buying a personal accident cover under motor insurance is mandatory. However, it is your personal choice to buy a personal accident cover with a health insurance policy.
Yes, you can if available with the insurance company.
Health insurance provides wider coverage as compared to personal accident insurance. This means more number of claimable events are included under health insurance whereas only accidental injuries are covered under a personal accident insurance plan.
The best personal accident policy is the one that is the most suitable for your needs. Look for plans that offer complete coverage at the time of need. The insurance company also matters when it comes to claims. Look for an insurer that will help you out without much hassle.
The cost of a health insurance policy depends upon the coverage you are looking to purchase. The sum insured of the policy also plays a major role in determining the premium.
Ayushman Bharat Yojana is one of the biggest health insurance schemes in India. It provides coverage for low-income groups that fall below the poverty line of the country.
Personal accident insurance provides financial aid in case of accidental injury, disability, or death.
Yes, buying health insurance online is a good idea because one can save time, make a purchase from anywhere with an active internet network, and probably get the policy online.
Difference Between Health Insurance & Critical Illness Cover
|Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.|
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