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Understand Total Permanent Disability (TPD) Insurance Cover

Team AckoSept 25, 2023

Life is swamped with many uncertainties, including unfortunate events such as accidents, medical emergencies, etc. that can have a significant impact on your life. The aftermath in these situations can be tough if you are the sole breadwinner of your family and are now incapable of supporting them financially. This is where Total Permanent Disability (TPD) insurance as a concept can come to your rescue. Let’s understand the concept of Total Permanent Disability Insurance Cover in detail.

Total Permanent Disability



What is Total Permanent Disability (TPD)?

Total Permanent Disability (TPD), is a state where a person is unable to work due to prolonged illness or bodily injuries because of an accident. For example, loss of limbs, eyesight, or speech. Opting for a TPD insurance cover can support your family and loved ones in such adverse times. This insurance covers the cost of living of the person who is disabled for life due to illness or injuries. A single person or a group of people can insure themselves against any health related mishaps by purchasing this policy.

Benefits of Choosing Total Permanent Disability Insurance:

Insurance companies segregate disability as temporary or permanent and depending on the condition, they payout the benefits. An individual will not be eligible for TPD benefits if curative treatment options are available. Another exclusion can be if the policyholder retires or resigns the workforce for any reasons other than illness or injuries. Let’s check out the benefits of choosing Total Permanent Disability insurance cover:

Financial Security for a Standard Lifestyle

Total Permanent Disability, cover offers financial security to you and your loved ones if you are incapable of earning due to an accident. It can help you meet the basic needs as well as assist you to maintain a standard lifestyle. The claim amount is generally a fixed percentage of the policyholder's average wage. 

Compensation of Medical Bills

Medical bills are inevitable if the individual is bedridden or ill. The assured sum may be helpful to payout the medical expenses and treatment charges.

No Hindrance in Children’s Education

Paying children’s school/tuition fees can be difficult if you are unable to earn.  Thanks to TPD, with the assured sum, you can continue your children’s education without any hindrance.

How to Buy a Permanent Total Disability Cover?

Buying a Permanent Total Disability cover is extremely necessary to secure your family financially in a situation where you are unable to earn. Keep in mind that not all disability health insurance plans provide broad coverage. Although the premium may be comparatively higher, opting for a broad-ranged insurance plan covers you against any eventuality.

Please note that the terms and conditions of Permanent Total Disability cover may vary for different insurers. That can affect the insurance premium and assured sum. Hence, acknowledging the terms and conditions is very crucial.

How Does It Work?

In permanent disability, the policyholder will be entitled the entire sum assured as per the conditions or policy inclusions. If you are temporarily unable to work, some percentage of the sum insured is paid out to meet your short-term loss of income. 

Total Disability coverage of the insured is dependent on the nature of the disability. Here are a few examples of Total Permanent Disability:

  • Irrecoverable or total loss of sight in both eyes.

  • Irrecoverable or total loss of hearing in both ears and loss of speech.

  • Irrecoverable or complete loss of speech and loss of one limb/ loss of sight in one eye.

  • Irrecoverable loss of sight in one eye and loss of a limb.

  • Loss by physical separation or total and permanent loss of use of one hand and one foot.

  • Loss by physical separation or total and permanent loss of use of both hands or both feet.

  • Irrecoverable or total loss of hearing in both ears and loss of sight in one eye/ loss of one limb.

Difference Between Temporary vs Permanent Disability:

Both temporary and permanent disability are classified in partial as well as total disability insurance cover. However, here is a comparison table showing the difference between temporary and permanent disability:

Temporary Disability Permanent Disability
Short-term disability for a particular span (Days, weeks, months, or a couple of years) Long-term disability resulting in permanent impairment for life.
Eligible to work after recovery Unable to work due to prolonged illness
Benefits are to be paid while recovering or in most cases, it lasts up to 2 years Benefits are to be paid when the doctor says your recovery is plateaued.
Examples- Bronchitis, Cancer, minor accidental injuries, etc. Examples- Loss of limbs, eyesight or speech, or incurable accidental injuries.

Things to Remember:

You can either opt for stand-alone permanent disability cover or disability add-on cover along with your Personal Accident Cover. As an add-on cover, you will be compensated for disability/death due to an accident. However, If you would like to purchase a broad-ranged coverage for permanent illness or accidental injuries, go for a stand-alone policy.

Why Choose Acko for Permanent Total Disability Cover in Health Insurance?

ACKO is a new-age insurance company in India that offers simple, hassle-free, paperless, and quick insurance policies. Since it is an online platform and there are no middlemen involved, it can offer insurance plans (including permanent total disability cover) at lower prices. Additionally, you will get expert assistance throughout the buying as well as claim settlement  processes. ACKO offers permanent disability cover as a part of Personal Accidental Cover. Opting for it will entitle you to get the entire sum assured in case of total permanent disability.

Frequently Asked Questions:

Here are a few commonly asked questions and answers related to the above topic:

1) What is a permanent and total disability?


A person is considered to permanently disable when he is disabled for life due to injuries or illness, rendering him unable to work for a lifetime.

2) What is the difference between permanent total and permanent partial disability?


Permanent total disability refers to when you are completely disabled for the rest of your life due to illness and injuries because of which you can no longer work and earn money. For example, loss of limbs, loss of eyesight, paralysis, etc.

Partial disability means you are still able to function, but not at a full capacity. For example- back injuries, hearing loss, loss of speech, etc.

3) Is Permanent Disability Insurance covered under Personal Accident Cover?


Yes, Permanent Disability Insurance is covered under Personal Accident Cover.

4) What qualifies as a permanent total disability?


Below are a few points which qualify as a permanent total disability:

  • Loss of eyesight of both the eyes

  • Loss of both the limbs

  • Hearing loss and speech impairment 

  • Physical loss or separation of one hand and one foot, etc.

5) What is the scale of compensation in case I lose one limb and one eyesight?


You will be entitled with 50% compensation in case you lose one limb and one eyesight.

6) How can I buy a Total and Permanent Disability cover from ACKO?


ACKO offers TPD cover under motor insurance plan for coverage up to Rs.15 lakh. You can buy a standard vehicle insurance and along with that you can avail Personal Accident Cover which includes Total Permanent Disability.

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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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