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- A Health Insurance policy
- Health Insurance with accident cover
- Health Insurance and Accidental Death Cover
- Personal Accident Insurance
- Difference between Health Insurance and Accident Insurance
- Requirement of Personal Accident Cover with Health Insurance
- Personal Accident policy covers medical expenses
- Accident and Health Insurance benefits
- Conclusion
- FAQS - FREQUENTLY ASKED QUESTIONS
Nobody can deny the significance of possessing a health insurance policy . However, it is imperative to exercise prudence and refrain from hastily procuring one. Given its vital role in financial planning and realising life goals, it is essential to make a well-informed decision.The most common question people miss when purchasing Health Insurance is - does Health Insurance cover accidents?Accident coverage is paramount, as they are unforeseeable and can lead to grave injuries, disabilities, or even fatalities. The medical treatment expenses and financial losses from accidents can significantly burden you and your family.In this article, we'll uncover topics like whether Health Insurance covers accidents and injuries, the difference between accident and Health Insurance and the benefits of accident coverage.
A Health Insurance policy
Health Insurance or medical insurance is a policy that provides financial aid for unpredictable medical expenses resulting from illness or injury. Health Insurance either reimburses the medical bills or directly pays the healthcare providers on behalf of the insured person.These policies are available in different types and offer distinct benefits. Some types include Individual mediclaim policies, family mediclaim, and senior citizen mediclaim policies.Generally, the medical treatment and pre and post-hospitalisation expenses are part of the coverage. However, insurance providers now offer more comprehensive coverage to accommodate the increasing number of health concerns and illnesses. Healthcare services now cover wider uncertainties, such as road accidents.
Health Insurance with accident cover
Does Health Insurance cover accidents? This is a question that many people aren't aware of. Health Insurance does not always come with accident cover. It depends on the type of policy and the benefits offered by the insurer.Some Health Insurance policies may include accident medical coverage as a part of their basic coverage. In contrast, others may require you to buy it as an optional rider or a standalone policy.Regular Health Insurance plans may not cover all the costs and risks of accidents. You need Personal Accident Insurance coverage to get extra protection.Additionally, many employers cover their employees with accident and Health Insurance policies. The two common picks of most employers are the Group Medical Coverage (GMC) and Group Personal Accident Policy (GPA).In case of an accident at the workplace, these policies help employers take care of the expenses they must incur due to these unfortunate incidents. GMC and GPA policies offer medical and financial coverage to insured employees, ensuring their welfare.To know more about Group Medical Coverage (GMC) and Group Personal Accident Policy (GPA) - click here .
Health Insurance and Accidental Death Cover
No Health Insurance policy covers accidental death. Therefore, in case of death due to an accident, the family will not receive any death benefits. Also, if the family members are not under the health policy, it instantly becomes invalid. This is because Health Insurance policies cover a person's health requirements and not post-death benefits. Health Policies include medical, hospitalisation, and surgical expenses during a medical emergency, planned hospitalisation, OPD consultations, and diagnostic services based on the selected plan.However, this does not imply that no other method of getting coverage against accidental death is available. A specific type of policy covers the unexpected death of the insured - a personal accident insurance policy.
Personal Accident Insurance
Most Health Insurance plans do not protect against accidental death. But you can protect yourself by buying Personal Accident Insurance. It will pay you or your family if you die or are disabled by an accident. However, natural deaths are not covered here. So, if a claim is raised for the insured's natural death, the insurance company can reject it.
Difference between Health Insurance and Accident Insurance
Accident and Health Insurance are the two options for supporting finances in a medical emergency. But nobody can use them interchangeably. They have distinct characteristics, advantages, and drawbacks. Therefore, one must go through the differences between each policy before making a purchase decision. Some of the most common accident and Health Insurance differences are:
| Feature | Health Insurance | Accident Insurance |
| Coverage | Health Insurance covers the medical expenses related to medical conditions and treatments, such as hospitalisation, surgery, medicines, tests, etc. Also, most Health Insurance does not cover medical costs associated with the impairment or death of the insured. | Accident insurance covers only the treatment costs that arise specifically from an accident. The accident medical expenses cover the injuries, fractures, burns and other ailments the policy provider lists. Additionally, in case of an unfortunate accidental death or temporary disability of the insured person, a lump sum amount is provided. |
| Nature of the plan | Health Insurance is a comprehensive plan that can be bought as an individual or a family floater policy. It can also have various add-ons, such as critical illness cover, maternity cover, etc. | Accident insurance is usually an add-on cover that can be attached to your health or motor insurance policy. Further, you can buy a personal accidental plan as a standalone policy, but it will have a limited scope of cover. |
| Premium | Factors such as age, health status, total sum insured, type of policy, etc., decide the premium of your Health Insurance policy. | In contrast, the premium for accident insurance depends on the sum insured and the extent of coverage. |
| Tax benefit | Health Insurance provides tax benefits as your premium is qualified for tax deduction under Section 80D of the Income Tax Act 1961. | Accident insurance doesn't provide tax benefits until and unless it's part of your health or motor insurance policy. |
| Claim process | Depending on the network and the insurer's terms, Health Insurance claims can be cashless or reimbursement-based. Submit bills, reports, and discharge summaries to make a claim. | The claim process for accident insurance is usually reimbursement-based. FIR, post-mortem report, disability certificate, etc., are required to claim accident insurance. |
As you can see, accident and Health Insurance have different purposes and benefits. You should consider your needs and preferences before buying either. Also read : 5 Benefits of Health Insurance That Makes It a Must Have Cover
Requirement of Personal Accident Cover with Health Insurance
Health Insurance can be a wise investment to protect you from high medical bills in a health emergency. But remember, it won't cover you if you get disabled or die from an accident.Many health policies offer the option to add on accident cover as a rider. By choosing this rider, you can protect your family from the financial burden of rising living costs in the event of your absence. It's wise to opt for this coverage because accidents happen.Additionally, if accident cover is unavailable as an add-on to the health plan, you can buy a standalone Personal Accident Policy. This plan will help pay car accident medical bills, and Health Insurance will cover other health needs, such as preventive care, chronic conditions, prescriptions, etc.
Personal Accident policy covers medical expenses
A Personal Accident Policy provides coverage in case of injuries/illness specific to an accident. However, it does not cover medical expenses like hospitalisation, surgeries, or regular doctor visits. It's essential to understand your policy's limitations and consider purchasing additional coverage if you need more comprehensive protection.
Accident and Health Insurance benefits
The most significant benefit of having an accident and Health Insurance policy is the peace of mind you will have. As medical urgency and road accidents are sudden and unforeseen, both policies prepare you and your family to deal with such difficult situations.Further, an accident and Health Insurance policy and coverage can provide various benefits-
- Financial protection
- Medical coverage
- Lump sum payout
- Daily cash allowance
- Education fund
- Tax benefit
- Cumulative bonus
- Cashless hospitalisation
Conclusion
Life is full of surprises. You never know what will happen next. Accidents can hurt you, your property, or your life. That’s why you need personal accident insurance. It protects you from the financial impact of accidents. It doesn’t matter how old you are, what you do, or how healthy you are. Personal accident insurance is for everyone. It helps you live a peaceful life. Also read : What is The Convalescence Benefit in Health Insurance?
FAQS - FREQUENTLY ASKED QUESTIONS
Can I buy a Health Insurance and personal accident insurance policy together ?
You can buy multiple accident and Health Insurance policies. You can get them from the same insurer or different ones. But you can only claim for the same expense once. You can't get paid twice or more by various insurance companies.
What are the types of Personal Accident Policies ?
Personal Accident Insurance Policies are of two main types:
1. Individual Accident Insurance: It covers accident medical bills if you lose sight, limbs, or life due to an accident.
2. Group Accident Insurance: Offered by employers to their employees at a lower rate. But it has fewer features and is very basic.
Can people with genetic disorders buy Health Insurance Policies ?
According to the Delhi High Court, excluding genetic disorders from insurance policies is illegal and discriminatory. People with genetic disorders are entitled to medical insurance and cannot be denied coverage or benefits based on their condition.
Is Group Medical Coverage free of cost ?
Group Medical Coverage (GMC) is free as the employer pays the premium on your behalf. It covers your health needs and expenses. Because of the COVID-19 pandemic, it is now compulsory for all employees in India. This insurance helps you financially, so you don’t have to pay out of your pocket in a health emergency. It can also cover pre-existing diseases, critical illnesses, maternity expenses, etc., depending on the type of policy and the insurer's terms.
What types of accidents are covered under a Personal Accident Policy ?
Personal Accident Policy covers you for any mishaps that happen due to road, rail and air accidents, collisions, fire, explosion, and others. It pays you or your family if you die or get disabled by an accident. It also helps you cope with the loss of income if you can't work because of your disability.
Does the Personal Accident Policy cover accidents outside India ?
Typically, Personal Accident Policies provide comprehensive coverage for the injuries incurred from an accident, even outside India. So, whether you travel for business, leisure or relaxation, if any unexpected situation arises, rest assured your policy will cover medical bills for accidents. Further, the claim process is straightforward and efficient in an emergency. However, check the territory clause of the policy you plan to purchase. It will make you aware of the specific geographies covered under the policy.
Should I rely on GMC provided by the company or take my cover separately ?
One of the benefits of a group insurance plan is that it can cover you for pre-existing diseases from the very first day, implying that you don’t have to worry about any waiting periods for certain illnesses. Furthermore, the GMC claim process is smoother and faster. Nevertheless, a major drawback of GMC is that you will lose coverage once you resign from the company. That is why everyone advises choosing GMC and purchasing separate personal health coverage. It is an extra expense, but having your insurance means flexibility and security in the long run.
What is the maximum limit for personal accident insurance ?
According to the IRDAI, the regulatory body for insurance in India, you can choose the sum insured for your Health Insurance policy from a wide range. The lowest sum insured available is ₹ 2.5 lakhs, and the highest limit is ₹ 1 crore. However, when deciding the sum insured, you should also consider factors such as age, health condition, family history, lifestyle, and inflation.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
