Updated on 23 Dec 2025
Accidents can take place anytime and anywhere — on the road, at work, or even at home. Besides the emotional and physical toll, it can add a great financial stress on you, especially when the hospital bills keep piling up. The accident's financial burden begins to weigh on you, causing stress and anxiety. This is where personal accident insurance can come in handy.
A personal accident insurance policy provides financial protection in case of accidental death, disability or injury. It helps cover medical expenses, loss of income and gives peace of mind to you and your family during unexpected situations.
This blog explains what personal accident insurance is and why you need it.
Benefits of a personal accident insurance policy
A personal accident insurance policy provides great benefits to individuals and families in case of an accident. Some key benefits include:
Easy claim process
The claim process for a personal accident insurance policy is straightforward and hassle-free. Most insurance companies offer 24/7 customer support and fast claim settlements, ensuring you receive your payout when you need it the most.
Affordable premiums
Personal accident insurance policies come with affordable premiums that make them accessible to everyone.
Comprehensive coverage
Such policies offer comprehensive coverage against a wide range of accidents, including road accidents, accidents at work and mishaps at home. They also cover accidental death and disability, ensuring you and your family remain protected in a worst-case scenario.
Financial support
In case of an accident, a personal accident insurance policy offers a lump sum payout that can help cover various expenses. This includes rehabilitation costs, medical bills and loss of income due to permanent or temporary disability. This financial support can help you concentrate on your recovery instead of worrying about financial woes.
Worldwide coverage
These policies offer worldwide coverage, meaning that policyholders are protected regardless of their location.
What is the coverage in a personal accident insurance policy?
A personal accident insurance policy provides financial support to the insured and their family in case of accidental injury, disability, or death.
While the coverage may differ across insurers, some common benefits include:
- Accidental death benefit: In case of the death of an insured individual due to an accident, the nominee gets the full sum insured.
- Permanent total disability: In case the accident causes total or permanent disability, a lump sum payout is made.
- Permanent partial disability: If an accident leads to partial but permanent disability, like loss of one limb, compensation is provided.
- Temporary total disability: In case an insured individual is unable to work due to an accident, weekly compensation is provided.
- Medical expenses: Some insurers also provide reimbursement for hospitalisation and treatment costs.
- Additional coverages: Depending on your insurance plan, some insurers also offer add-ons like education grants for children, transportation of mortal remains or coverage for broken bones and burns.
This is an indicative list. Please read the policy wording for the complete list of inclusions/exclusions.
How is the premium calculated for a personal accident insurance policy?
The premium calculation for a personal accident insurance policy differs from a regular health insurance policy. It focuses more on lifestyle and occupational risks.
Some key factors include:
- Sum insured: Higher coverage means you need to pay a higher premium.
- Age of the insured individual: The premium keeps rising slightly with age.
- Occupational risk: Businesses or jobs that involve physical work, travel or hazardous environments, like construction, driving or mining, usually have higher premiums.
- Type of coverage: The premiums for basic accidental health are cheaper than the comprehensive individual health insurance plans that often include disability, hospitalisation or income protection.
- Add-on benefits: Depending on the plan, add-ons may include education grants for children, transportation of mortal remains, or coverage for burns and fractures.
Conclusion
A personal accident insurance policy gives you and your family peace of mind and support during life’s unexpected challenging moments. This coverage gives you protection against medical expenses, temporary or permanent disability, and financial security for your loved ones.
If you're ready to secure your future from uncertain medical situations, let us help you compare personal accident insurance plans and understand premium options by filling out the form on this page.
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.