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Personal Accident Cover or Health Insurance

19 May 2022, 3:40 PM

Both life and health are unpredictable, anyone can face an unfortunate event. In today’s hectic world, health is taking a toll and this hectic schedule has led us towards a reckless environment where bad health and accidents are on a rise. This increasing number of deteriorated health conditions and accidents have increased the need for securing the financial needs of the family. 

We all want to safeguard our families in times of distress no matter what the situation is. Safeguarding the family financially is one of our prime motives. Understanding this need, many avail health insurance policies that take care of financial needs in times of medical emergencies. 

Additionally, many of the leading health insurance companies are offering personal accident cover to meet the financial expenses in times of the unfortunate event. However, a personal accident cover is different from a health insurance cover. Both of these tools are designed to satisfy different needs. Let us understand both these tools in detail.

What is a Health Insurance Plan vs Personal Accident Cover Policy?

Prima-facie both types of insurance may seem similar, however, their definitions state that they are completely different.

A health insurance policy is insurance coverage designed to cover the cost of medical expenses arising due to disease or illness. The medical expenses covered by a health insurance plan includes the cost of hospitalisation, cost of diagnostic tests, cost of medicines, doctor fees, etc. On the other hand, a Personal Accident Cover policy is more focused insurance coverage in which compensation is offered to the beneficiaries in the event of disability or death caused to the insured due to an accident. 

Now that we know the basic differentiation, let us understand in detail the other differentiating factors between Health Insurance Policy and Personal Accident Cover Policy below:

  • Medical Cover
    A health insurance policy is designed to offer coverage for any type of medical expense arising out of illness, disease, accident, or any other medical condition. While a personal accident cover policy offers coverage of medical expenses arising out of accidental injuries. The scope of medical cover is wider for a health insurance policy.
  • Pre-hospitalisation and Post-hospitalisation Costs
    Pre-hospitalisation expenses refer to the medical expenses arising before the insured is hospitalised while the post-hospitalisation expense covers medical expenses arising after the discharge of insured from the hospital. A health insurance policy is designed to cover pre-hospitalisation, post-hospitalisation, and hospitalisation expenses. While on the other hand a personal accident cover policy is designed to cover only the expenses incurred for treating accidental injuries.
  • Disability Coverage
    Disability is unpredictable damage which can affect the financial well-being of a person. A personal accident cover policy offers coverage for disabilities that occurred due to accidents. However, a health insurance policy does not provide specific coverage for disabilities caused due to accidents.
  • Death Cover
    Health insurance is typically not designed to cover against sudden death, this is because death cover is usually offered by life insurance. A personal accident policy covers death caused due to accidents and offers 100% sum assured to the nominee.
  • Premium
    A health insurance plan is a comprehensive insurance cover offering holistic coverage for illness, diseases and accidents. Therefore, the premium amount of a health insurance policy is higher. While a Personal Accident Cover policy is cheaper as it covers medical expenses arising out of an accident.


We must keep in mind that both these policies offer different benefits. They both are designed to serve a different purpose. So, you  must evaluate your financial needs and goals to decide which one to opt. You can buy both insurance covers to make your financial planning robust and full-proof. Both these plans are beneficial as they cover for unforeseen medical emergencies.

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