Articles 146 views July 28, 2021

Individuals choose health insurance to protect their finances in a medical emergency. On the other hand, people also opt for personal accident insurance to get coverage in case of an unfortunate accident. But many are confused between both of them while choosing the suitable cover.

If you are one of those, read this post where we’ll discuss the difference between health insurance and personal accident insurance based on different aspects. First, we will understand what exactly both of them are. Approaching this way will help you understand the matter better. Let’s start without any further delay.

What Exactly is Health Insurance and Personal Accident Insurance?

A health insurance plan provides comprehensive financial coverage to individuals against several treatment expenses incurred during a medical emergency. On the other hand, as the name suggests, personal accident insurance provides coverage only in case of an accidental hospitalization, death or disability. Personal Accident Insurance is a type of add-on that you can choose with your base health insurance plan to enhance your overall coverage.

Differences Between Health Insurance and Personal Accident Insurance

Now that you have understood the basic definition of both types of insurance, let’s discuss the difference between them based on a few factors – coverage, premium amount, tax benefits, sum insured, waiting period, etc.

Scope of Coverage

One of the key differences between health and personal accident insurance plans is the coverage features that both of them provide.

Individuals can get coverage against the following expenses under a health insurance plan.

  1. Pre-and Post-hospitalization Expenses
  2. Daycare Treatment Coverage
  3. Organ Donor Expenses
  4. Domiciliary Treatment
  5. OPD Treatment Coverage
  6. Daily Cash Benefit
  7. In-patient Hospitalization
  8. Critical Illness Coverage
  9. Emergency Ambulance Charges Cover
  10. Maternity And Newborn Coverage
  11. Miscellaneous Coverage like Room Rent Charges, Blood, Oxygen, Doctor’s Fees, etc.
  12. Periodic Health Check-ups

On the other hand, personal accident insurance provides coverage according to the eventualities due to an accident. To know more, check the below table.

EventualitiesCoverages
Accidental DeathThe entire sum assured is paid to the nominee in case of death due to an accident. (The sum assured may change from one plan to another)
Permanent Total DisabilityIn case an accident results in permanent total disability (Such as loss of legs or limbs), the insured person will get a specific percentage (up to 150% ) of the sum insured.
Permanent Partial DisabilityPolicyholders will get a definite percentage of the sum insured (up to 100% ). The payout will also depend on the severity of the disability.
Temporary Total DisabilityPolicyholders will get a weekly compensation in case of a permanent total disability due to an accident.

Nature of the Insurance

As you can see from the coverage features, health insurance offers comprehensive coverage (against different medical expenses) as compared to personal accident insurance (Add-on cover) that provides coverage against expenses incurred in case of an accident only.

Option to Enhance Coverage with Add-ons

Under a health insurance plan, individuals can choose from multiple add-on covers to boost their coverage. These add-ons are maternity cover, hospital cash cover, critical illness cover, room rent waiver, etc.

On the other hand, personal accident insurance is an add-on cover itself. Apart from the accidental death and permanent disability coverage, you can get the following fixed cash benefits with this add-on.

  1. Adaptation Allowance (Lifestyle Modification Benefit)
  2. Child Education Benefit (Education Grant)
  3. Transportation Expenses
  4. Funeral Expenses
  5. Mortal Remains Expenses
  6. Hospital Daily Cash Allowance
  7. Loan Protection Cover
  8. Adventure Sports Cover
  9. Burns and Fracture Cover
  10. Medical Expenses Cover

Type of Plans

Health Insurance companies offer different types of plans from which you can choose according to your convenience. These can be group, family floater or individual health insurance plans. On the other hand, personal accident insurance is available on an individual or group basis.

Coverage Amount (Sum Insured)

The sum insured under a health insurance plan tends to be higher compared to personal accident insurance. Also, the sum insured depends on the plan option and coverage features chosen by you. You should also know that the premium amount will be higher on choosing a higher sum insured. When choosing the plan, keep your affordability in mind.

Waiting Period

An individual needs to wait for a certain period to get the comprehensive benefits of an insurance policy. This period is known as the waiting period. Health insurance plans, usually, come with a waiting period of 30 days, 2-4 years, 9 months-2 years for new illnesses, pre-existing illnesses and maternity, respectively. The duration of the waiting period can, however, differ from one policy to another.

In the case of personal accident insurance, individuals don’t need to serve any waiting period. It means you can get coverage under the plan from Day 1.

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