Difference Between Health Insurance and Personal Accident Insurance


21 Jul 2023

Read about the Difference Between Health Insurance and Personal Accident Insurance. Check out the health insurance policy from Kotak General Insurance.

There are a bunch of insurance plans out in the market, which can be a bit overwhelming for some. And it is important that you pick the right type of insurance for your portfolio. It will help you secure your future and offer you adequate coverage should you ever need it. One such category of insurance is a health plan. And buying a health insurance plan is a necessity these days, given the ever-increasing costs of medical care.

If you are looking to buy a health insurance plan, the chances are high that you will come across a personal accident insurance policy as well. Though they might seem a bit similar to some, they cater to different needs and requirements. Understanding the difference between both plans can help you decide which plan would work best for you.

The following table will help you understand the plans a bit more closely.


Health Insurance Plan

Personal Accident Cover

Need For The Plan

A health plan offers financial assistance in times of medical treatment or hospitalisation. It covers various expenses related to medical attention.

The plan offers financial assistance only when the insured is admitted to a hospital due to an accident that results in injuries, disability of any form or even the death of the insured.

Type of Plan

Indemnity Plan.

Fixed Benefit Plan.

Standard Coverage

The plan usually covers expenses related to hospitalisation, ambulance expenses, daycare procedures, and any kind of surgery, among other benefits.
If you choose a comprehensive plan, you can opt for add-ons to further enhance the coverage of the plan.

A personal accident insurance policy pays a lumpsum amount to the insured or their family members in the event of hospitalisation due to an accident.

Death Benefits

Health insurance plans do not offer death benefits for the insured.

If the insured loses his or her life due to an accident, the plan pays the sum insured to the nominees of the policy.

Pre and Post-Hospitalisation Expenses

Health usually plan covers expenses that a patient incurs before a patient is admitted to the hospital.
Similarly, the plan also covers expenses that the insured might be subject to for additional home care or other medical expenses after they are discharged from the hospital.

The plan only offers hospitalisation expenses that are related to the accident. Since it is accident-related, pre and post-hospitalisation expenses are not covered.

Disability Benefits

Health insurance plans do not usually cover disability. Especially if it occurs due to an accident.

If the insured is disabled in any form due to an accident, the policy will compensate for the same.

Tax Benefits

The premiums that you pay are tax deductible under Section 80D and are also applicable to your dependent parents.

The premiums that you pay towards the policy do not offer any type of tax benefits.


All the major differences between a health insurance plan and a personal accident insurance plan, are mentioned above. And it should help you make the decision, as far as picking the right policy is concerned.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.