Updated on - 20 Feb 2026
Accidents can happen when we least expect them. The consequences of accidents can be both physically and financially overwhelming. That is when personal accident insurance helps you get through the financial impact of such unexpected events. In this blog, let us explore what personal accident insurance is and its key benefits.
What is personal accident insurance?
Personal accident insurance is a policy that offers financial protection in accidental injury, disability or death. It provides a fixed benefit amount if the insured person suffers bodily injury due to an accident. This cover is helpful not just for medical expenses, but also for the loss of income during recovery or permanent disability.
Unlike regular medical insurance, which reimburses hospital expenses, personal accident insurance gives you a lump sum payout based on the nature and severity of the injury.
Key benefits of personal accident insurance
Some of the significant benefits of personal accident insurance are as follows:
Financial protection against accidental injuries:
One of the major benefits of purchasing personal accident insurance is the coverage it offers for medical expenses incurred due to accidental injuries, including hospitalisation, surgeries, and rehabilitation, helping policyholders cope with the financial burden of unexpected medical bills.
Replacement:
Another significant benefit of purchasing personal accident insurance is that it offers coverage for loss of income or disability caused by accidental injuries, ensuring that policyholders can maintain their financial stability even if they are unable to work due to an accident.
Accidental death benefit:
Personal accident insurance provides a lump sum amount to the nominee in case of the policyholder’s accidental death, providing financial support to the family during a difficult time.
Customisable coverage:
Coverage for personal accident benefits can be customised to suit policyholders’ specific requirements, allowing them to choose the coverage amount and add-on benefits as per their preferences.
What is covered by a personal accident insurance plan?
A standard personal accident insurance policy usually covers:
- Accidental death
- Permanent total disability (e.g. loss of both legs or eyesight)
- Permanent partial disability (e.g. loss of a finger or one eye)
- Temporary total disability (e.g. being bedridden due to an accident)
- Medical expenses related to the accident
- Funeral expenses (in case of death)
- Ambulance charges
What is not covered by a personal accident insurance policy?
Though personal accident insurance provides broad protection, there are exclusions. A policy generally does not cover:
- Self-inflicted injuries or suicide
- Injuries caused by drugs or alcohol
- Participation in risky sports or adventurous activities without prior disclosure
- Accidents due to war, civil unrest or nuclear risks
- Pre-existing disabilities or medical conditions
- Pregnancy or childbirth-related injuries
How much personal accident insurance coverage is enough?
The right amount of coverage depends on your lifestyle, income and number of dependents. A common suggestion is to choose a sum insured that is at least 10 times your annual income. This ensures your family is financially secure if an accident causes permanent disability or death.
How is premium for a personal accident insurance policy calculated?
The premium for personal accident insurance depends on various factors:
- Age of the policyholder
- Occupation – high-risk jobs (e.g. construction, driving) attract higher premiums
- Sum insured – higher cover means a higher premium
- Coverage type – whether the policy includes temporary disability, medical expenses, etc.
Most policies are very affordable, especially when compared to other insurance products like health or life insurance.
Difference between personal accident insurance and critical illness insurance
It’s important not to confuse personal accident insurance with critical illness insurance. Though both offer financial protection, they cover different situations.
Critical illness insurance gives a lump sum payout if you are diagnosed with a serious illness like cancer, stroke or heart disease. It helps cover treatment costs and other living expenses when you're unable to work.
In contrast, personal accident insurance pays out for physical injuries caused solely by accidents, not illnesses.
Many people choose to have both types of insurance for complete protection, especially since illnesses and accidents can both lead to financial stress.
How to file a personal accident insurance claim?
Filing a claim is a straightforward process:
- Inform the insurer immediately after the accident
- Fill out the claim form that is provided by the insurance company
- Submit all required documents
- Undergo a medical examination, if required
- Wait for claim approval. The insurer will verify and settle the claim
Make sure you understand your policy terms to avoid delays or rejections.
Documents required to file a personal accident insurance claim
The documents needed may vary, but generally include:
- Completed claim form
- Copy of the personal accident policy
- Medical reports and prescriptions
- FIR or police report (in case of serious injury or death)
- Death certificate (if applicable)
- Post-mortem report (if applicable)
- Proof of identity and address
- Employer's certificate (if claiming loss of income)
Conclusion
Personal accident insurance is a simple yet powerful way to protect yourself and your family from the financial strain caused by unforeseen accidents. While it doesn’t cover diseases or health conditions, it works well alongside other plans like critical illness insurance to offer complete peace of mind. Whether you're the main breadwinner or living independently, having personal accident cover can be a wise financial decision.
FAQs
1. Can I buy personal accident insurance for family?
Yes, many insurers offer family accident policies covering spouses and children.
2. Can I claim from both health insurance and personal accident insurance?
Yes, you can. Personal accident insurance gives a lump sum, while health insurance reimburses actual expenses.
3. Is personal accident insurance tax-deductible?
No, personal accident insurance premiums are not eligible for tax deductions under Section 80D in India. However, there are specific scenarios where personal accident insurance premiums may qualify for tax deductions.
4. Should I get personal accident cover if I already have critical illness insurance?
Yes, both types of cover serve different purposes and provide broader financial protection together.
5. Is employer-provided personal accident insurance enough?
It may not be. Employer-provided cover is often limited, and it ends when you leave the job. A personal plan gives continuous protection.
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 your general physician or another certified medical professional for any questions regarding a medical condition. 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.