Personal Accident Insurance
A very large cover for a very small premium — for anyone who earns with their hands.
A personal accident policy pays out when an accident causes death or disability. It is the most affordable protection available in India: a few hundred rupees a year can buy a cover of several lakh rupees.
It matters most for daily-wage earners, drivers, delivery riders, shopkeepers, farmers and anyone whose income stops the moment they cannot work. Paydeer retailers can issue a personal accident policy in minutes with minimum documentation.
What A Personal Accident Policy Pays
- Accidental Death: the full sum insured is paid to the nominee.
- Permanent Total Disability: full sum insured when the insured is permanently unable to work.
- Permanent Partial Disability: a fixed percentage of the sum insured for the loss of a limb, an eye or hearing.
- Temporary Total Disability: a weekly benefit while the insured is unable to work and recovering.
- Hospital Cash: a daily allowance for each day of hospitalisation after an accident.
- Education Benefit: a lump sum towards the children’s education on death of the insured, in plans that offer it.
Who Should Take This Cover
- Drivers, delivery riders and anyone who spends the day on the road.
- Daily-wage workers, factory workers and construction workers.
- Shopkeepers, farmers and self-employed people with no employer cover.
- The single earning member of any household — as a low-cost supplement to a term plan.
- Employers who want to cover their staff under a single group personal accident policy.
Personal Accident Cover Versus Health And Term Plans
A health policy pays hospital bills. A term plan pays only on death. A personal accident policy fills the gap in between — it pays a lump sum on disability, when the customer is alive but can no longer earn. That is the situation families are least prepared for.
Because the premium is so small, it is usually sold along with a health or motor policy rather than on its own, which makes it an easy add-on sale for the retailer.
F.A.Q
Frequently Asked Questions
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How much does a personal accident policy cost?
It is the cheapest cover on the portal. Depending on the occupation of the insured and the sum insured chosen, a cover of several lakh rupees is available for a few hundred rupees a year.
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Is a medical test required?
No. Personal accident policies are issued on the basis of age and occupation, without a medical examination, which is why they can be issued on the spot.
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Does it cover death by illness?
No. This policy pays only for death or disability caused by an accident. Death due to illness is covered by a life insurance or term plan.
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I already have health insurance. Do I still need this?
Yes, they do different jobs. Health insurance pays the hospital; a personal accident policy pays the family a lump sum for the loss of income when the insured is disabled and cannot work.
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Can an employer cover all workers under one policy?
Yes. A group personal accident policy covers all employees under a single contract at a lower per-person premium, and a Paydeer retailer can arrange it for shops, factories and transport businesses.
