Insurance · Accident-only cover

Personal Accident Insurance

Pays a lump sum or income replacement if you die or are permanently/temporarily disabled by an accident — NOT illness. ₹25L cover costs just ₹500-2,000/year (10-15× cheaper than term life). Often missed because health insurance covers hospitalisation but NOT income loss / permanent-disability lump sum. Mandatory if you ride a 2-wheeler, drive long-distance, or work in physical occupation.

Who needs this

Two-wheeler riders (highest accident-risk demographic in India), commercial vehicle drivers, construction/industrial workers, frequent road travellers, sole earners. Skip if you already have ₹50L+ term cover AND robust health cover with critical illness rider.

Key decisions

Q1
How much sum insured?
Minimum 5× annual income (covers ~5 years of family income loss). For ₹10L salary: ₹50L PA cover. Premium typically ₹1,000-3,000/year — among the cheapest cover-per-rupee in Indian insurance.
Q2
Standalone or rider?
Standalone: highest payout, broadest coverage, ₹500-2K premium. Rider on term plan: cheapest (₹100-300 add-on) but capped at term sum insured. Rider on health plan: usually inferior, skip.
Q3
What's covered exactly?
Accidental death (100% sum insured), permanent total disability (100%), permanent partial (% based on body part), temporary total disability (weekly income replacement, typically 1% of SI/week up to 100 weeks). Education benefit for children + transport-of-mortal-remains often included.
Q4
What's NOT covered?
Illness/disease (use health insurance), self-inflicted injury, drug/alcohol abuse, war + nuclear, hazardous sports unless rider added, pre-existing disabilities. Aviation other than as fare-paying passenger usually excluded.

Top insurers ranked by claim settlement

Personal Accident Insurance — Claim Settlement Ratio

Source: IRDAI Annual Report 2024-25 · published values

HDFC Ergobest
95.35%
Tata AIG
90.00%
Bajaj Allianz
89.86%
New India Assurance
87.00%
ICICI Lombard
85.26%

HDFC Ergo:Optima Personal Accident — covers 1,000+ disability scenarios.
Bajaj Allianz:Premium Personal Guard — high SI to ₹2 Cr, low premium.
Tata AIG:Accident Guard — broad coverage, education + funeral expense.
ICICI Lombard:Personal Protect — bundled with health/motor for discount.
New India Assurance:Janata Personal Accident — public sector, ultra-low premium.

IRDAI rules + scheme specifics

Permanent disability scale: industry-standard percentage-based (loss of vision = 50%, single limb = 50%, etc.).
Temporary disability: weekly benefit up to 100 weeks (about 2 years) typical maximum.
Group PA cover under employer is supplementary — keep individual plan.
Section 45 of Insurance Act: insurer cannot reject claim after 3 years if disclosed.
Cumulative bonus: 5-10% sum insured increment per claim-free year, up to 50%.