Personal accident insurance and health insurance are two of the most commonly spoken about insurance products these days. Yet, the coverage that they each bring often gets policyholders confused. Many people do wonder whether need personal accident insurance if they already have health insurance, and vice versa. If you too have similar doubts, don’t worry – read on for a proper understanding of the differences in the coverage you can expect from personal accident insurance and health insurance.

Coverage from health insurance

A health insurance policy will cover you for hospitalisation costs as well as expenses incurred in pre-and post-hospitalisation for your illness. Your coverage works for an emergency illness and for planned hospitalisation. For instance, if you want to claim cashless treatment, you might need to inform your insurer and have them approve your request a few days in advance.

Your health insurance policy will generally cover you for ambulance costs, AYUSH treatment, and day care procedures too. The policy may have certain sub-limits for coverage of procedures and room rent costs. Make sure to read the fine print as the exact extent of coverage can vary between insurers.

Coverage from personal accident insurance

A personal accident insurance policy will cover you for accidental death and pay the full sum insured to the nominee appointed by you. This insurance also covers you for disabilities sustained due to accidents up to the percentage specified in the policy. Furthermore, hospitalisation expenses that arise from your accident are also usually covered.

The takeaway

Health insurance and personal accident insurance each do their own part in keeping you covered against unforeseen events. While health insurance can protect your finances during a period of illness, a personal accident insurance policy is generally depended upon for a lump sum payout if the policyholder suffers death or disability due to an accident. The main difference in the coverage lies in the fact that a personal accident insurance policy’s coverage only kicks in if you make a claim due to an accident.

Another major difference between these two insurance products lies in the aim of the coverage. Health insurance protects your finances during an illness; it won’t cover you with a payout for death or disability. On the other hand, personal accident insurance can serve as an income replacement for family members if the breadwinner policyholder tragically dies in an accident or is left disabled due to a mishap and thus, unable to earn money.

Both these insurance products can work towards ensuring you are completely covered against unexpected medical expenses, due to accidents or otherwise. It is always advisable to go a step further in staying extra secured than take a risk with lack of coverage.

A quick tip – You can always consider adding personal accident insurance as a rider on your health insurance policy.

We hope that this article has helped better your understanding of the differences between personal accident insurance and health insurance. Do make sure to speak to a professional insurance consultant to discuss your unique needs for coverage. Take care.