One can never predict when a medical emergency will happen. Having a personal accident and medical insurance policy will help you cover the expense of medical care during such unfortunate situations. However, both differ in the coverage they provide.
A health insurance policy offers comprehensive coverage for healthcare costs incurred during hospitalisation and treatment. Personal accident insurance only pays out in circumstances like loss of life, disability, or injuries due to an accident. All health insurance plans cover hospitalisation and treatment expenses for injuries sustained during an accident but don’t provide compensation for death or disability due to the mishap. So, if one needs to cover such situations, they need to purchase personal accident insurance with their health policy.
When you are searching for health insurance policies, you may come across the term sickness insurance. Both the terms are used interchangeably most of the time. However, they are entirely different. Sickness insurance provides monetary benefits in the event the policyholder gets diagnosed with a disease that can lead to permanent disability or inability to work temporarily. When you are planning to buy a policy, it is necessary to understand what is personal accident and sickness insurance, as well as health policy. This will help you choose the right one according to your needs.
What is the major difference between health insurance and personal accident insurance?
Many choose to have both health and personal accident insurance to ensure that they are protected against all possible health and accident risks. The latter is more targeted and offers particular benefits in the event of unintentional injuries or fatalities, whereas the former covers all health-related needs, including illnesses and certain accident cases.
The major differences between health insurance and personal accident insurance are as follows:
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Sl No.
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Parameter
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Health Insurance
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Personal Accident Insurance
|
|
1
|
Coverage
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Illnesses, treatments, and injuries resulting from accidents.
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Injuries, disabilities, and death due to accidents.
|
|
2
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Nature
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Comprehensive
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Accident specific
|
|
3
|
Duration
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For a specific period (Yearly Renewable )
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Accident specific timings
|
|
4
|
Policy Premium
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Based on age, health, amount of coverage
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Occupation, risk level, coverage amount
|
|
5
|
Maternity Benefits
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Yes, it can be bought as an add-on
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No
|
|
6
|
Coverage for Critical Illness
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Yes, it can be bought as an add-on
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No
|
|
7
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Exclusions
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Pre-existing conditions, elective treatments
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Suicide, self-inflicted injuries, and risky activities may be excluded
|
|
8
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Types of Plans
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Group, family health plan, individual health insurance, etc.
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Personal accident covers can be bought with Motor and Health insurance plans
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|
9
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Additional Features
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Incorporates preventive care and wellness benefits frequently.
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Restricted to benefits for accidents, wellness care not included
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|
10
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Waiting Period
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Yes, for pre-existing health conditions
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No
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Conclusion
In the event of an accident, personal accident insurance offers benefits including disability payments or lump-sum payments for death or serious bodily harm. This provides financial security to the insured and his family. By covering medical expenses health insurance ensures financial stability during times of treatment and hospitalisation.
When combined, personal accident and health insurance provide a complete safety net against health-related risks.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.