Personal Accident Insurance: Everything You Need to Know

Personal Accident Insurance: Everything You Need to Know

Accidents usually don’t come announced, and it’s something that everyone might experience in their lifetime. Whilst negligence, and several other factors contribute to the causes of accidents, nobody can truly tell precisely when an accident will occur. However, what matters most is how you plan to mitigate it’s financial and emotional effect if you ever experience one. In this article we will look at personal accident insurance, how it works, what it covers, its exclusions and valuable benefits to policyholders.

What is Personal Accident Insurance?

Personal accident insurance is an insurance plan that safeguards individuals and families against financial loss arising from injuries, disabilities, or death caused by accidents. It is quite different from health insurance and life insurance.

How Does It Work?

Generally, personal accident insurance reimburses you for funds spent treating yourself during an accident. This means you get a cash payment to cover your medical expenses up to the sum insured in the policy. In the case of a minor accident leading to injuries, fractures, and dislocations, the insurance company pays the medical bill. Whilst in the case of a major accident that leads to death and permanent disability, the insurer compensates you or your dependents financially, following which the policy contract is terminated.

What Does Personal Accident Insurance Cover?

While personal accident coverage may vary based on the insurance policy and insurance company, it typically covers the following perils. Let’s take a look at some.

1. Medical Expenses: 

Costs incurred for treatment of injuries resulting from accidents.

2. Disability Benefits: 

Compensation for permanent or temporary disability caused by an accident, which may include loss of limbs, sight, or hearing.

3. Accidental Death Benefits: 

Lump-sum payment to the insured’s beneficiaries in the event of the insured’s death due to an accident.

4. Hospitalization Benefits: 

Reimbursement for hospitalization expenses resulting from accidents, such as room charges, surgery fees, and ambulance services.

Who Should Get Personal Accident Insurance?

Basically, everyone should opt for personal accident insurance whether at home, in the workplace, or during travels. However, the following persons should endeavor to subscribe to the policy. Such as:

  • Individuals involved in dangerous occupations like builders, contractors & engineers, and site suppliers.
  • Sole breadwinner of a family.
  • Traders who travel the highways for business activity.
  • Actors and production crew members who risk their lives on movie set.
  • Haulage and commercial transport drivers.
  • Individuals who commute to work every day.
  • Individuals who work in hazardous facilities.
Are there Exclusions in this Type of Insurance Cover?

Personal accident insurance has exclusions just like other insurance policies and they include:

  • Pre-existing conditions: These are Injuries or disabilities that existed before the policy was purchased.
  • Self-inflicted injuries: Injuries intentionally caused by the insured.
  • War or acts of terrorism: Injuries sustained during war, civil unrest, or acts of terrorism.
  • Injuries while under drug or substance influence: Accidents that occur while the insured is under the influence of alcohol or illegal drugs.
  • Participation in risky activities: Injuries sustained while participating in certain high-risk activities, such as extreme sports or hazardous occupations not covered by the policy.
  • Aviation-related accidents: Injuries sustained while flying as a pilot or crew member, or participating in aerial activities not covered by the policy.
  • Mental or psychological injuries: Injuries that are solely mental or psychological in nature, unless specifically covered by the policy.
  • Illness or disease: Coverage typically applies only to accidental injuries, not illnesses or diseases.
Benefits of Personal Accident Insurance

There are exciting benefits that policyholders can derive from personal accident insurance. The following are some of them.

1. Financial Protection:

Personal accident insurance provides a financial safety net by offering lump sum payments or regular benefits in the event of accidental death, disability, or injury. This can help cover medical expenses, replace lost income, and support the insured and their family during a challenging time.

2. Peace of Mind:

Knowing that you have personal accident insurance in place can provide peace of mind for you and your loved ones. It offers a sense of security knowing that you are financially protected in case of an accident.

3. No Medical Examination Required:

In many cases, personal accident insurance does not require a medical examination to qualify for coverage. This makes it easier for individuals to obtain the insurance and ensures quick access to benefits when needed.

4. Supplemental Coverage:

Personal accident insurance can complement other insurance policies you may have, such as health insurance or life insurance. It provides additional protection specifically for accidents and can fill any gaps in coverage from other policies.


Personal accident insurance is the perfect policy for unforeseen accidents. It helps with a security net for unplanned medical expenses, allowing you to get back on track after a difficult period. Rather than wait for accidents to happen and heap financial burden on you and your family, consider purchasing a personal accident insurance plan today from a reputable insurance company and get peace of mind.

To learn more about our Personal Accident Insurance offerings:

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Read: Guide to Annuity: Meaning, Benefits and Types

Do I need Personal Accident Insurance When I Have Health Insurance?

Yes, you do. Whilst health insurance provides coverage for medical expenses resulting from illness or injury, personal accident insurance serves a different purpose entirely. Imagine, you were injured in an accident and unable to work, personal accident insurance can provide financial support to cover living expenses, medical bills, and other costs not covered by health insurance.

How Soon Should I Inform My Insurer of an Accident?

As soon as possible or after the occurrence of the accident. Prompt notification allows your insurer to process your claim efficiently as this helps prevent any potential complications or delays in the claims process.

Does Personal Accident Policy Pay Compensation to the Dependent Family in the Event of Death?

Yes, many personal accident insurance policies provide compensation to the dependent family if the policyholder’s dies from an accident. The compensation is from the sum insured and paid to the designated beneficiary named by the policyholder. 

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