Updated on - 23 Oct 2025
When it comes to protecting your health and finances, having a health insurance plan is a smart step. But sometimes, regular health insurance might not be enough. That’s where accident cover and critical illness cover come in. These two add-ons offer extra support in case of serious medical situations. Let’s understand what they are and why they matter.
What is accident cover in health insurance?
Standard health insurance policies do not include personal accident coverage. Therefore, you must opt for a personal accident insurance plan to get coverage.
Personal accident insurance is a form of insurance that covers the costs or damages caused by a traffic accident. This type of policy offers compensation in the event of the insured’s permanent total disability or demise resulting from a road accident. You might want to contemplate purchasing a personal accident insurance policy for various reasons. Some benefits of personal accident cover include coverage for hospitalisation expenses and accidental death and disability, ensuring financial security for your loved ones, as well as worldwide coverage.
You can opt for coverage for terrorism as an optional add-on with a personal accident insurance policy. Thus, it is necessary to verify the specifics of the coverage with the insurer prior to purchasing an accident insurance policy.
What is critical illness cover in health insurance?
If you receive a critical illness diagnosis, the policy provides a lump sum payout that you can utilise to cover the costly expenses associated with hospitalisation, doctor's consultation fees, medication, ambulance charges, room rent and pre- and post-hospitalisation expenses, as well as loss of income caused by the illness. This payout is in addition to your Mediclaim or health insurance policies.
Without critical illness cover, paying for treatment costs can put a burden on your family and erode years of savings in just a few months. In addition, this insurance offers the option to receive a monthly income in case of diagnosis. When selecting a policy, consider the sum assured, age, critical illnesses covered, renewal limit and inclusions and exclusions.
Having critical illness cover can provide you with the financial support you need at the right time and help keep your other savings intact for their respective objectives.
Is PA and critical illness cover already included in the health insurance plan?
Personal accident insurance is an optional coverage you can purchase alongside a health or motor insurance policy. This coverage provides protection against injuries resulting from an accident and necessitates an extra premium.
The sum insured for health insurance can range from Rs 5-50 lakh or beyond, while personal accident insurance can range from Rs 2.5 lakh to 1 crore. Health insurance may have a waiting period of 9 months to 4 years, while personal accident insurance has no waiting period. You can widen the scope of your primary healthcare plan by purchasing personal accident coverage as an add-on to include the entire cost of medical treatment for injuries related to accidents.
Health insurance and critical illness policies are also different types of insurance plans. Health insurance covers medical and outpatient expenses during hospitalisation, but may not cover all diseases and has a longer waiting period. On the other hand, critical illness policy covers specific life-threatening diseases and provides a lump sum upon diagnosis.
Health insurance covers a broader range of ailments, while a critical illness insurance policy provides coverage for a specified list of critical illnesses. Both policies have their advantages and limitations and need to be purchased separately. The sum assured value varies between insurers, and waiting periods apply to both policies.
Benefits of having both covers alongside health insurance
Adding accident and critical illness cover to your health plan gives you complete protection. Here’s why it’s useful:
- Extra financial support: Health insurance plans pay hospital bills, but these coverages give you money directly. You can use it for treatment, family needs or even repaying loans.
- Covers non-medical costs: If you can’t work due to injury or illness, these payouts help manage daily expenses.
- Peace of mind: Knowing you have support in case of serious health problems helps reduce stress.
- Quick payout: These covers often give a lump sum quickly after diagnosis or accident, without needing detailed bills.
Things to check before buying
Before you buy accident or critical illness cover, keep these points in mind:
- List of illnesses covered: Check which diseases are covered in the critical illness policy. Each company may have a different list.
- Waiting period: Most policies have a waiting period of about 30 to 90 days before you can claim. Make sure you know this.
- Survival period: Some critical illness plans need the insured to survive for a few days (like 30 days) after diagnosis to get the benefit.
- Exclusions: Check what’s not covered. For example, pre-existing conditions or self-inflicted injuries.
- Claim process: Choose a plan that has a simple and quick claim process.
- Sum insured: Think about how much cover you actually need. Consider your age, family situation and lifestyle.
Tax benefits on the premium paid
In India, the premium you pay for accident and critical illness insurance can also help save tax. Under Section 80D of the Income Tax Act, you are able to claim a deduction for the premium paid on health-related insurance policies.
The exact benefit depends on your age and the type of policy. You should keep the payment receipts and policy documents ready while filing your income tax return.
Conclusion
Accident and critical illness insurance are important parts of financial planning. While your main health insurance policy for family covers hospital bills, these extra covers provide a safety net when life throws unexpected challenges.
Not sure what kind of cover is right for you? Fill out the simple form on this page to get personal advice based on your needs. Our experts will guide you at no cost, so you can make the best decision for your health and safety.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis or treatment. Please consult a certified medical and/or nutrition professional for any questions. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.