Personal Accident Insurance: Complete Guide

Accidents happen. Personal accident insurance covers death, disability, and medical expenses from accidents—separate from health insurance. Learn what ₹5L coverage actually means.

By Deep Shah, CEO, IndSure

Personal Accident Insurance

Accidents happen. Personal accident insurance covers death, disability, and medical expenses from accidents—separate from health insurance.

Coverage: death (lump sum), permanent disability (lump sum), temporary disability (income replacement), medical expenses (₹50k–₹2L). Premium: ₹500–₹2,000/year for ₹5L–₹50L cover.

Why Separate from Health Insurance?

Health insurance covers illness and accidents in hospital. Personal accident covers accident-related death and disability outside hospital too—road accidents, falls. The two complement each other.

Coverage Types

  • Death: lump sum to nominee (₹5L–₹50L)
  • Permanent disability: 100% disability pays the full sum assured; partial pays a percentage
  • Temporary disability: monthly income replacement (1–2 years)
  • Medical expenses: treatment costs from the accident

Those are the standard heads of cover. Disability percentages and exclusions differ sharply between insurers—check what YOUR policy actually says.

Frequently asked questions

Do I need personal accident if I have health insurance?

Yes. Health insurance covers hospitalization. Personal accident covers death/disability from accidents (even outside hospital). Both are complementary—get both.

What's covered in personal accident?

Accidents: Road accidents, falls, workplace accidents, drowning, fire. Excludes: Suicide, war, risky sports (unless add-on), natural death, illness.

How much coverage do I need?

5–10× annual income. ₹12L/year income → ₹60L–₹1.2cr coverage. Premium: ₹1k–₹3k/year for ₹50L coverage.