Personal Accident Health Insurance in India (2025)
The ultimate knowledge source about the advantages, cover and price of personal accident insurance in India along with the best plans. Prepare your financial future; protect yourself against any unfortunate event.
Personal accident insurance policy is an important financial cushion in a world that is full of uncertainties, bearing in mind that accidents can occur at any time. Although usually sacrificed in favour of a life or health insurance, personal accident policy gives a special and important safety net to a person and his or her family. This one-stop 2025 guide will help you understand all that you need to know about personal accident insurance in India: what are its far-reaching advantages and coverage possibilities, how expensive it is, who is eligible to buy it, and how to choose the most suitable one to your needs.
What is the Personal Accident Insurance?
Personal accident insurance is a document that delivers the compensation of money in case of the death, disability or damage after the accident. Whereas a normal health insurance policy is one that is used to cover the hospitalization costs as result of either the illness or injury a personal accident policy can pay in a lump sum or will replace the income in the event of the accidental death or disablement. It will help reduce the financial burden an accident has on the insured and his dependants.
Why is Personal Accident Insurance More than Ever in 2025?
The hustle and bustle nature of the life of 2025, and its growing mobility will mean that personal accident insurance has become a non option in terms of building the sound financial plan of individuals. As road accidents have been on the increase, there has been and continues to be a rise in the culture of adventure sports as well as simple risks that we take in our day to day commutes, hence the likelihood of getting into an accident has become a sad reality. It is a security cushion as this insurance helps your family avoid the next big disaster in that, an accident does not turn into a financial disaster.
Comparison of Leading Personal Accident Insurance Plans in India (2025)
| Feature | HDFC ERGO Personal Accident Insurance | Niva Bupa Personal Accident Plan | Bajaj Allianz Personal Guard | Tata AIG Accident Guard Plus | ICICI Lombard Secure Mind |
|---|---|---|---|---|---|
| Sum Insured (₹) | Up to ₹1 Crore | Up to ₹10 Crore | Up to ₹25 Lakhs | Up to ₹1 Crore | Up to ₹1 Crore |
| Accidental Death Cover | 100% of Sum Insured | 100% of Sum Insured | 100% of Sum Insured | 100% of Sum Insured | 100% of Sum Insured |
| Permanent Total Disability (PTD) | Up to 125% of Sum Insured | Up to 125% of Sum Insured | 100% of Sum Insured | Up to 100% of Sum Insured | Up to 150% of Sum Insured |
| Permanent Partial Disability (PPD) | As per policy schedule | As per policy schedule | As per policy schedule | As per policy schedule | As per policy schedule |
| Temporary Total Disability (TTD) | 1% of Sum Insured per week (up to 100 weeks) | 1% of Sum Insured per week (up to 100 weeks) | 1% of Sum Insured per week (up to 100 weeks) | 1% of Sum Insured per week (up to 100 weeks) | 1% of Sum Insured per week (up to 104 weeks) |
| Accidental Hospitalization | Covered (as an add-on) | Covered (as an add-on) | Covered | Covered | Covered |
| Child’s Education Benefit | Yes (up to a specified limit) | Yes (up to a specified limit) | Yes (up to a specified limit) | Yes (up to a specified limit) | Yes (up to a specified limit) |
| Claim Settlement Ratio (2023-24) | 99.6% (General Insurance) | 90.8% (Health Insurance) | 98.9% (General Insurance) | 99.0% (General Insurance) | 98.7% (General Insurance) |
| Key Add-ons | Hospital cash, broken bones benefit, air ambulance cover | Adventure sports cover, loan protector, fracture benefit | Ambulance charges, funeral expenses, lifestyle modification benefit | Repatriation of mortal remains, disappearance cover, coma benefit | Psychological support benefit, disappearance cover, emergency medical evacuation |
Disclaimer: The Claim Settlement Ratios mentioned are for the general/health insurance category of the respective companies as per the latest available IRDAI reports and may not be specific to Personal Accident plans. Policy features
The strong advantages of personal accident policy
By purchasing the personal accident insurance policy, a holder of the policy will enjoy numerous benefits long after the insurance money is long spent. Take a more detailed view of the most important advantages:
Financial Stability of Your Family: In unfortunate eventuality, in case you meet a sudden premature death, the policy amount is paid to your nominee in full, stabilizing the financial condition of your family.
Guard against Disability: In cases whereby an accident causes disability whether temporary or permanent and in the process your earning capability is impaired, the policy entails a regular income to meet your expenses.
Broad Disability Coverage: It covers many forms of disability, which include:
Permanent total disability (PTD): When a permanent disability makes you unable to go to work, a large amount (usually 100% or more) of the amount you were insured gets paid.
Permanent Partial Mental Injury (PPD): In case of one limb (or an eye or other permanent partial disablements) you receive a predetermined percentage of the amount of insurance.
Temporary Total Disability (TTD): To counter temporary inability to work after an accident, the policy will provide a weekly or monthly payment so that you do not lose income in the meantime as you are recovering.
Hospitalization and Costs of Medical Cover: Most of the policies will also cover the costs of the medical expenses that are incurred out of an occurrence of the incident, such as the hospitalization costs, the ambulance costs and even the outpatient treatment costs.
Child Education and Marriage Benefit: There are plans where there are other benefits that give such education or a fund to educate or marry dependent children in case the insured person has a temporary accident or permanent total disability or die.
Low Premiums: The premium of personal accident insurance is relatively affordable as compared to other type of insurances hence, it is a cheap and easy means to insure your financial future.
International Coverage: The other advantage of most personal accident insurance policies is that they provide international coverage which implies that you are covered against accidents anywhere you are in the world.
No Medical Examination Required: You do not usually have to carry a medical examination in case of buying a personal accident insurance.
Tax Savings: The amount of premium that one pays towards a personal accident insurance policy is allowable as tax deductions according to the Section 80D of the Income Tax Act, 1961.
The coverage (What is Covered and What is Not)
Personal accident insurance policy offers a broad coverage. This is a rundown of the common inclusions and exclusions:
What Is Covered Normally:
| Coverage Type | Description |
|---|---|
| Accidental Death | In the event that the insured is killed as a result of an accident, the nominated person gets a lump sum of money. |
| Permanent Total Disability | A large portion of the amount insured (usually full 100 per cent and above) will be paid in the event that the insured person becomes permanently totally disabled such as by loss of both limbs or sight. |
| Permanent Partial Disability | Permanent partial disability such as loss of one limb or one eye is compensated by a percent of the sum insured. |
| Temporary Total Disability | A monthly or weekly compensation is paid to the loss of income between the time of temporary disability. |
| The reimbursement of medical expenses. | Cover expense, under hospitalization and other medical expenses that result because of the accident. |
| Ambulance Charges | Refunds the amount used in ferrying the insured to the hospital. |
| Kid Education Grant | Pays a lump sum in case of the death or the permanent total disability of the policy owner with the purpose of providing the education of the dependent children of the insured. |
| Funeral Expenses | Covering the cost of holding the funeral of the insured when he or she dies in an accident. |
| Burns and Broken Bones | Other policies may include payments in lump sum when there are fractures and burns due to an accident. |
What Common Exclusions Cover (What is Not Covered):
- Natural death or injury and/or illness or disease.
- Suicidal attempts, attempted suicide, or self injury.
- Physical harm caused by accidents during consumption of alcohol or drugs.
- Involvement in risky profession or sports (sports activities; unless they have an add-on).
- It also covers injuries that inflicted during the involvement of any illegal act or criminal activity.
- Death or harm in the course of delivering a child or child birth.
- Incidents related to war and terrorism (though certain policies can provide it as an addition).
How is the Personal Accident Insurance Calculated Premium?
The price of personal accident insurance policy is calculated with a number of variables:
Sum Insured: The more the amount of sum insurance you take, the more premium percentage you will pay.
Occupation: The occupation you have is also important. People, who work in high-risk professions (e.g., construction workers, miners), will be required to pay a larger premium as it would be compared to the representatives of low-risk ones (e.g., office workers).
Age: Though age is one of the ones, the difference is normally minimal compared to when it applies to health or life insurance.
Policy Period: Longer period of holding a policy may at times imply a reduction in the annual policy.
Add-on Covers: Additional benefits and riders You will have to pay more when you choose to add them to this insurance.
Eligibility Criteria of Personal Accident Insurance
In India, the criteria to buy personal accident insurance is widely simple:
Age: Adults are mostly expected to be between 18-65 years old to access the facility. Certain policies can be higher on the maximum entry age. Family floater plans can also be availed of children and their age varies, but it is mostly at 5 years of age.
Nationality: The policy is open to the citizens of India who live in India. Non- Resident Indians (NRIs) may also fall under some of the policies.
No Pre-existing Condition Declaration: In most cases, one is usually not required to undergo a medical examination and a statement on pre-existing conditions.
The Way to select the Best Personal Accident Insurance Program in 2025
There are many insurance companies in the market and choosing the correct personal accident policy may not be easy. Some of the fundamental aspects to consider in order to make a right decision include:
Check Your Requirements: Considering your lifestyle, profession and financial dependents would be sufficient to calculate what amount of insurance you should take. One guideline is usually to get a cover of at least 100 times your monthly income.
Compare Coverage and Benefits: Seek a policy that covers various incidences like when one is to die or becomes permanently totally disabled; the death and permanent total disability sum insured should be high as well as benefits such as temporary total disability, reimbursement of medical expenses, education grant on child.
Consider the Sub-limits: Know the existence of sub-limits on individual benefits, including weekly payment benefits of disability on a temporary basis or coverage of ambulance charges.
Read the policy Exclusions: Know what will not be covered in the policy to avoid any surprises when it is time to file the claim.
Con- Add on Covers: Seek riders that would add to your cover, e.g., a waiver of premium, adventure sport cover or a loan protector.
Claim Settlement Ratio of the Insurer: When an insurer has a high claim settlement ratio it means that it is trustworthy and settles its claims effectively.
Customer Service and Reviews: Read online reviews and ratings to get an idea of how the insurer is viewed with the regard to the provision of customer service and processing of claims.
How to file a Claim: A Stepwise Guide
Easy claim is important in case of an accident which hopefully would never occur. There is a general idea of steps as follows:
Intimate the Insurer: As soon as possible inform the insurance company about the accident, either through their helpline number or online portal or official site.
Complete Claim Form: Filling the claim form in a correct manner and attaching other documents, send the claim form.
Offer Required Documents: This should comprise of a copy of the FIR (First Information Report) of road accident, medical reports, disability certificate (where relevant) and death certificate (Where death occurs).
Claim Processing: The insurance company will check the documents and will process the claim according to the term and conditions of the policy.
Claim Settlement: After getting green flagged, the amount of the claim will be released to either the insured of the nominee.
In Conclusion: Your Pro-active Step to Financial Safety
Personal accident insurance policy is a mandatory prevention to any accidental contingencies that a person cannot go without to secure his/her financial future. Because of the progressively faster lifestyle, its significance is inestimable in 2025. With knowledge about the benefits, coverage and selection of a plan that is most suitable based on your needs, you can make sure that you and your loved ones are safe against the financial consequences of a bad happening. Make a responsible move now and ensure a sound sleep with a well-rounded personal accident insurance cover.
The methods that i have used: I conducted research about the personal accident insurance in India 2025 by using “personal accident insurance in India 2025” search criteria on benefits, coverage, cost, eligibility, best plans, claims process and exclusions. Next, I combined this information into a complete guide dividing it into coherent parts and tables with no confusion. To conclude the writing I also included a wrap-up of the information to underline the essence of such insurance.