Personal accident insurance and health insurance offers different features and coverages. Health insurance covers a wide range of situations, while personal accident insurance is meant for accidental and disablement. If you want to know what each covers and if you need both, read on.
What Is Personal Accident Insurance?
Personal accident insurance policy can help provide financial protection when an accident results in or disablement. This could include a road accident, a fall, or other covered events.
In cases of or permanent partial disablement, the claim payout is based on the type and nature of disablement as mentioned in the policy wordings. If an accident results in death, the nominee receives the claim. The focus is on mitigating the financial impact of an accident on the insured person and their family.
What Is Health (Medical) Insurance?
Health (Medical) insurance is the broader shield. It covers you across a much wider range of medical situations, including hospitalisation from accidental emergencies, , diagnostic tests, pre- and post-hospitalisation expenses, and sometimes even day-care procedures.
Whether it’s a planned knee surgery or a diagnosis, health insurance is built to handle it. Many policies today also offer critical illness add on, maternity cover, and OPD benefits, making them quite comprehensive.
Accident Insurance Vs Health Insurance: Key Differences
Let’s take a closer look at how personal accident insurance and health insurance compare:
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Parameter
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Personal Accident Insurance
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Health Insurance
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What it covers
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Accidental death and disabilities due to accidents
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Illness, surgery, hospitalisation (including due to accidents)
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Death benefit
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Yes, in case of accidental death
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No
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Illness coverage
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No
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Yes
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Tax benefits
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subject to opting of old tax regime
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The difference between health insurance and accident insurance really comes down the coverage of these policies. Health insurance is an indemnity cover, meaning it helps pay for the medical expenses incurred. Personal accident insurance, on the other hand, is a benefit cover that can provide a predefined lump-sum payout in case of accidental death or disablement due to accident.
Imagine someone is diagnosed with appendicitis and needs surgery. Personal accident insurance would not cover the treatment because the condition is not linked to an accident. Health insurance, however, could help cover the hospitalisation and surgery costs.
Now consider a different situation. A person is injured in a road accident and suffers a permanent disablement. Health insurance may help pay for medical treatment and hospital bills. Personal accident insurance, on the other hand, may provide an additional benefit for the disability.
Can You Have Both Accident and Health Insurance?
Yes, you can have both. Health insurance and personal accident insurance are designed to work together, not replace each other.
Health insurance mainly pays for medical costs from illnesses, injuries, surgeries, and hospital stays. Personal accident insurance focuses on the financial impact due to accidental Depending on the policy, it may pay benefits for accidental death, permanent total disablement, permanent partial disablement, or temporary total disablement.
This is where having both the policies can be helpful if an accident leads to hospitalisation, health insurance can help cover the treatment costs, while personal accident insurance may provide a lump-sum benefit based on the nature and severity of the injury.
Conclusion
The difference between personal accident insurance and health insurance is all about knowing the coverage of the policies. Health insurance covers your health broadly. Personal accident insurance specifically covers the financial impact in case of accidental death or disablement. You can’t replace one with the other.
FAQs
1. Which insurance is more important to buy first?
There is no size fit all answer for this. While health insurance covers a wide range of covered health events, personal accident cover provides coverage for accidental death and disablement
2. What does personal accident insurance include?
It usually covers accidental death, and temporary total disability.
3. Is accident insurance enough on its own?
This depends on the coverage you are seeking. Personal accident insurance covers accidental death and disablement. It does offer coverage in case of health related medical events.
Disclaimer: The content is for informational, awareness and education purpose only.