What is personal accident insurance
What is personal accident insurance

Livewell: Health Insurance & Wellness Blogs | Max Bupa

What is personal accident insurance

Max Bupa

23 September 2020

India is among the busiest countries in terms of road traffic. This, coupled with a significant bit of erratic driving and a general disregard for traffic rules, makes our country one of the top contenders for the maximum road accidents suffered. A quick look through the most recent report on the road accidents by the Ministry of Road Transport and Highways shows that in 2018, India witnessed over 4.6 lakh road accidents and over 1.5 lakh accidental deaths. A look-back at the data for the previous years shows similar numbers.

With Indian roads being so unsafe, it’s only natural that individuals will want to protect themselves from the repercussions of such an unfortunate incident. Accidents can leave people with permanent disabilities. Or, they could lead to death. In either case, the financial burden involved for the family of the victim can be very steep.

Here’s where personal accident insurance can prove to be of great help.

What is a Personal Accident Insurance Plan?


A personal accident insurance policy is a kind of insurance that can protect you from the financial repercussions and burden associated with accidental death or disability. In case of death or disability following an accident, personal accident insurance ensures that you or your survivors, as the case may be, receive financial assistance in the form or payouts or reimbursements for the medical costs associated with treatments for the victim. Broadly speaking, a personal accident insurance plan offers protective coverage against the following circumstances or incidents related to an accident:

●       Death

●       Permanent total disability

●       Permanent partial disability

●       Temporary total disability

●       Temporary partial disability


Why is Personal Accident Insurance is important?


When you think of insurance, the two most common kinds that come to mind are life insurance and health insurance plans. These kinds of insurance both cover a wide variety of insurable incidents, but accidental disability is kind of a grey area. It can be easy to overlook a clause in any of the regular health insurance plans or life insurance plans that excludes accidental death and/or disability.

But when you invest in a personal accident insurance policy, you can rest assured that the plan you purchase exclusively covers any unfortunate events following an accident. This can be the protective cover that you and your family need to get through the tough times that follow an unexpected mishap like this one. In case the primary breadwinner of a family passes away on account of an accident, the surviving members may not have an alternate source of income to rely on. This may also be the case if the primary breadwinner suffers from any disability that may impair their ability to continue earning income.


How does a Personal Accident Plan protect against these incidents?


The exact kind of coverage varies from one plan to another. Broadly speaking, however, these policies pay out a lump sum to the beneficiaries in the event of the death or permanent total disability of the policyholder. But in case of permanent partial disability, personal accident insurance may entitle the policyholder to receive a percentage of the sum assured, depending on how severe the disability is. With regard to temporary total disability, personal accident insurance typically provides periodic compensation. And in case of permanent partial disability and temporary total disability, the policy may usually be renewable.

Keep in mind though, that these terms and conditions depend entirely on the policy that you purchase. Do read the details thoroughly to see how the policy you intend to purchase treats each of the potential outcomes of an accident and select the one that benefits you optimally.



Given how accidents are quite common in our country, it is a smart financial move to purchase personal accident insurance. There are many insurance service providers who offer this kind of insurance plan, so make sure you use an online comparison tool to identify the plan that’s best for your specific requirements.


Trending Now

Cashless Health Insurance

Cashless hospitalization is an important factor, which you need to consider when purchasing health insurance. Medical insurance is important for all individuals, noting the rising costs of medical care. In addition, today medical treatment costs have reached the highest of all times, and are expected to increase further. Diseases and ailments, as well as accidents, can strike anyone at any given point of time. It may emotionally and financially devastate a patient's family. Although coverage cannot be made for emotional damages, financial losses can be covered by a health insurance policy.

What is mediclaim
What is mediclaim?

This article explains the definition, meaning & characteristics of Mediclaim policy in India. If you want to buy Mediclaim, then read this article first to get all the details about it.