Understanding The Differences Between Health Insurance And Personal Accident Insurance

When buying insurance, it is crucial to choose the right type of policy. For example, some people may know about health insurance and believe it is enough for them, and not know much about what personal accident cover is. Others may think only personal accident cover is important for them or have the compulsory version of it.

What is Health Insurance?

Healthcare may not be the most affordable sector for consumers. With the cost of healthcare, including drugs, treatments, surgeries, and more, increasing year on year, it can be difficult for the average consumer to address their health concerns, and possibly even more troublesome to face health emergencies. Even if they create savings to face such instances, it may not be enough. Without dedicated savings, it may be even more difficult. Health insurance is something which can support the individual in such times by offering cover for medical expenses arising due to unplanned illness or accident related health emergencies . It helps insured to be financially prepared to deal with any such situations. When you purchase health insurance, you agree to pay an annual premium to an insurance company. In return, the insurance company agrees to cover your medical expenses, up to the sum insured limit opted .* There are a number of different health insurance policies available in India, each with its own set of benefits and features. When choosing a health insurance policy, it is important to consider your individual needs and circumstances.

What is a Personal Accident Cover?

Accidents are usually associated with vehicles or high-risk situations. However, accidents can happen to anyone. As a result, one may sustain serious damage to the physical self or worse. If one has encountered a serious accident, one may require hospitalisation to help deal with the damage and recover. If an accident results in death, it may bring grief and mourning to the family. One aspect that may go unnoticed is that the family may also face financial troubles after a death, especially if the person who passed was a primary earner. If you worry about such possibilities, especially because you work in high-risk situations, you may want to consider getting a personal accident cover. A Personal Accident insurance policy is a kind of insurance policy which is designed to provide protection against death, permanent total or partial disability arising due to any accident. If you own a vehicle, such as a car or a two-wheeler, it is possible that you may be having personal accident coverage as a part of your motor policy.* A compulsory personal accident cover is provided with a motor insurance plan if you do not have an existing personal accident plan. Even if you don’t, standalone personal accident insurance plans can be purchased. With some health insurance policies as well as some life insurance plans, some possibilities of accidents are covered. However, these inclusions may be optional, may add to your premium cost, and may not offer sufficient coverage.* With a standalone personal accident plan or one bought alongside a motor policy, you can ensure that you get the host of benefits that the policy has to offer.

Benefits of Buying a Personal Accident Insurance Policy

Bajaj Allianz General Insurance Company offers a comprehensive Personal Guard insurance policy that includes a range of features designed to provide security and peace of mind in the event of an accident. Discover the key benefits of personal accident insurance, including:

Extensive Cover:

This policy offers broad protection against various adverse conditions that may arise from accidents. This includes extensive coverage for medical expenses , rehabilitation , child education cover and other related costs.

Family Cover:

One of the features of the Personal Accident Insurance Policy is its provision for family coverage. This ensures that not only you but also your immediate family members are protected under the same policy, providing a safety net for the whole family.

Comprehensive Accidental Cover:

This policy includes a complete accidental cover, which means it not only covers death and disability but also a range of other accidental outcomes. This comprehensive approach ensures that multiple scenarios are taken into account.

Hospital Confinement Allowance:

In case of hospitalisation due to an accident, the policy provides a daily allowance. This can help cover the incidental costs of hospital stays, such as travel for family members and other daily expenses that are not typically covered by medical insurance.

Children Education Benefit:

If the insured faces a fatal accident or a disability, the policy provides an education benefit for dependent children. This feature is particularly beneficial in ensuring that the education of the children does not suffer in the wake of a family tragedy.

Cumulative Bonus:

The policy rewards no claims with a cumulative bonus, which usually involves an increase in the sum insured for every claim-free year. This can significantly increase the coverage amount without an increase in the premium.

Enhanced Sum Insured:

To address the needs of those requiring higher coverage, the policy offers options for an enhanced sum insured. This means that individuals can choose a higher cover based on their specific needs and risk exposure.

Criteria for Choosing the Best Personal Accident Insurance Policy

Explore essential criteria for selecting the best personal accident insurance policy, ensuring comprehensive coverage and financial security for unforeseen events.

Coverage

Ensure your policy covers common accidents related to your activities. If you travel abroad frequently, opt for worldwide coverage to protect yourself wherever you are.

Sum Insured

Choose a sum insured that matches potential medical expenses, considering factors like age and health. Adequate coverage ensures you won't face out-of-pocket costs beyond the policy's limit.

Premium

Look for a policy offering maximum coverage for a reasonable premium. Avoid the cheapest plans, as they may lack adequate protection. Balance affordable health insurance plans with comprehensive coverage.

Inclusions

Understand what scenarios the policy covers. Ensure it includes the most probable accident scenarios relevant to your lifestyle for necessary protection.

Exclusions

Review policy exclusions to understand what’s not covered. Some exclusions can be included by paying a higher premium. Ensure likely accident scenarios are not excluded.

Type of Policy

Personal accident insurance mostly comes as individual sum insured cover. However dependents can be covered under one policy, offering convenience and comprehensive protection.

Compensation to Family

Ensure the policy provides substantial compensation to your family in case of your permanent disability or death, securing their financial future.

Insurer’s Reputation

Research the insurer’s reputation. Look for companies like Bajaj Allianz General Insurance Company with a claim settlement ratio of 99.04%. A reputable insurer ensures prompt and effective service.

Exit Age

Choose a policy with a high exit age for continued coverage into old age, as the risk of accidents and related expenses increases with age.

Network Hospitals

Ensure your insurer has a broad and accessible network of hospitals for cashless treatment. This facilitates hassle-free hospitalisation and smooth claims processing.

Differences Between Health Insurance and Personal Accident Insurance

Here is a look at some of the primary differences between a health insurance plan and a personal accident cover.

Coverage*

A personal accident cover is a specific type of policy and covers only accidental injury. The coverage is limited to either medical treatments or hospitalisations after an accident, accidental permanent disability, or accidental death. On the other hand, a health insurance plan covers a range of ailments and conditions and is not limited to hospitalisations resulting from accidents.

Premiums

Since the scope of health insurance plans is wider as compared to personal accident plans, the premiums may also be slightly higher. You can use a health insurance premium calculator to understand the price you may have to pay to get the desired policy. The premiums depend on various factors, such as the type of policy chosen, your age, medical history, and more.*

Waiting period

Health policies come with a waiting period. This is a period that starts when you buy the policy and ends when you are allowed to make claims. Usually, personal accident plans do not have a waiting period. You may be able to make claims soon after you get the policy. However, it is best to check for any applicable waiting period when you make the policy purchase.*^

Claims Payout

A Health insurance product will mostly indemnify you upto the expense incurred, while in a Personal accident policy a lumpsum benefit is usually paid in case of a covered event . ^Claims are subject to terms and conditions set forth under health insurance policy. You need not make a choice between personal accident cover and a health insurance plan. It is ideal to assess your needs and make the choice you deem suitable. For some people, it may be best to choose both these plans. Health insurance as well as personal accident cover may help you protect your loved ones against financial stress.*

FAQs

What are the major differences between life insurance and health insurance?

Life insurance provides a lump sum to beneficiaries upon the policyholder's death, while health insurance covers medical expenses from illnesses or injuries.

What is a personal accident insurance policy?

A personal accident insurance policy offers financial coverage for accidental injuries, disability, or death, supporting medical expenses and income loss due to accidents.

What is covered under personal accident?

Personal accident insurance covers accidental death, permanent or temporary disability, and medical expenses from accidents. Some policies also cover hospitalisation costs and daily allowances.

Which health insurance is best in the market?

The best health insurance varies based on individual needs. Consider coverage, premium, network hospitals, and claim settlement ratio when comparing policies.

What is the maximum coverage of health insurance?

The maximum coverage depends on the policy, ranging from a few lakhs to several crores. Choose a sum insured that matches your potential medical expenses.

What is the benefit of personal accident insurance?

Personal accident insurance provides financial protection against accidental injuries, disability, and death, covering medical expenses and income loss, ensuring peace of mind.

What is covered by a personal accident insurance policy?

A personal accident insurance policy covers accidental death, disability, medical expenses from accidents, hospitalisation costs, and daily allowances.

What is personal accident cover in vehicle insurance?

Personal accident cover in vehicle insurance protects the policyholder against accidental injuries or death while driving, covering medical expenses and compensation for disability or death. How do I claim personal accident cover? Notify your insurer immediately after an accident. Submit necessary documents like medical reports and claim forms. Follow the insurer’s process for claim submission and settlement.   *Standard T&C apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.