Knowledge Centre

How Does The Personal Accident Insurance Policy Work?

Accidents can be a very harrowing experience – not just for those involved but their families and friends also. The sheer random and uncertain nature of accidents catches people by surprise, leaves them little time to react and causes severe physical injury, permanent disabilities or even death. Victims of accidents and their families are forced to deal with immense mental stress and emotional agony since their loved ones are in pain. Hospitalization, treatment and the inability to work during recovery all contribute to significant financial hardship as well.

In an effort to combat the risks and consequences involved during accidents, insurance companies have introduced specialized personal accident insurance policies. Personal accident cover kicks in during the event of an accident and will cover costs incurred due to hospitalization, treatment and ambulance expenses.

Depending on the degree of harm caused by the accident, the percentage of sum insured payable to the insured varies. Death, permanent disability and incurable mental insanity caused due to accident attract a 100% payment of sum insured amount. [A1] Please consult the brochures available online at HDFC ERGO for specific cases and eventualities.

Hospital cash benefits ensure daily allowances for every day the patient is hospitalized. This allowance is intended to supplement the lack of income during the period of hospitalization and support his/her family financially.

It is an often held misconception that health insurance and personal accident insurance policies are the same thing. Thought there is a significant overlap in coverage, the two policies differ in the following regards:

  • Accident Insurance policies will not cover cost incurred due to treatment of health conditions, diseases, critical illnesses and sickness while health insurance policies will provide coverage against these risks.

  • The quantum of sum insured offered for accident coverage is typically significantly higher for personal accident insurance as compared to health insurance policies.

  • Personal accident insurance coverage also attracts cheaper premium as compared to health insurance policies making it a viable option for those who want to just guard themselves from the risks posed by unexpected accidents.

If you are somebody who is keen on protecting yourself from the ever-looming large risk of accidents and their consequences, personal accident insurance cover is the right fit for you! HDFC ERGO offers a wide range of plans such as self-coverage, self and family coverage and self/family with dependents. The insurance experts at HDFC ERGO have always got you covered!

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the purchase.

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