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Difference Between Health Insurance and Personal Accident Insurance

Team AckoApr 1, 2021

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?

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?

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.

Is a personal accident covered under health insurance?

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.

Is it necessary to buy separate personal accident insurance?

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.

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

Yes, you can if available with the insurance company.

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

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.

How to find the best personal accident insurance policy?

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.

How much does a health insurance policy cost?

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.

Which are the major health insurance schemes in India?

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.

Which benefits does personal accident insurance provide?

Personal accident insurance provides financial aid in case of accidental injury, disability, or death.

Is it a good idea to buy health insurance online?

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.

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