Personal Accident Cover in India: Why It’s the Missing Policy
Last verified: June 2026. Insurance terms, waiting periods and rules vary by insurer and change — read the policy wording and confirm current terms before buying. General information, not financial advice.
A personal accident (PA) cover pays a lump sum if an accident causes death or disability — protecting your family’s income from a risk life and health insurance don’t fully address. It’s cheap and widely overlooked.
What it covers
- Accidental death: a lump sum (the full sum insured) to your nominee.
- Permanent total disability: typically the full sum insured.
- Permanent partial disability: a percentage based on the injury.
- Temporary total disability: a weekly benefit while you can’t work (in many plans).
Why it matters
Life insurance pays only on death; health insurance pays hospital bills. Neither replaces the lost income when an accident leaves you disabled and unable to work. PA cover fills exactly that gap — and a large cover costs surprisingly little.
Standalone vs rider vs government scheme
- Standalone PA policy: the most comprehensive, with high sums insured and disability benefits.
- Rider on a term/health plan: convenient but often limited.
- PMSBY: ₹2 lakh accident cover for ₹20/year — a cheap base, but the sum is small.
How much to take
A common guideline is a sum insured of around 10–15× your annual income, similar to term cover, so your family can absorb a long loss of earnings.
Worked example: how much cover?
A common rule is about 100 times your monthly income. A person earning ₹60,000 a month would aim for ₹50–60 lakh of accidental death and permanent disability cover. A standalone policy of this size often costs ₹3,000–₹6,000 a year, far cheaper than equivalent term cover, because it pays only for accidents.
What to check
- Temporary total disability benefit (weekly income replacement).
- Cover for partial permanent disability, with the percentage table.
- Worldwide cover and exclusions such as adventure sports.
The government’s PMSBY scheme gives ₹2 lakh of accident cover for ₹20 a year — a good add-on but too small on its own. See PMJJBY and PMSBY.
Reviewed October 2026. Card and product terms change — confirm current details with the provider.
FAQs
Is personal accident cover a substitute for term insurance?
No — it pays only for accidents. Term insurance covers death from any cause.
What does personal accident insurance cover?
Accidental death and disability (permanent total/partial and often temporary), as a lump sum or weekly benefit.
Isn’t this covered by life and health insurance?
Not fully — life pays on death, health pays bills; PA cover replaces income lost to accidental disability.
How much PA cover do I need?
Often around 10–15× annual income, like term cover.
