Personal Accident Insurance
A very large cover for a very small premium — for anyone who earns with their hands.
- No medical test
- Cover works 24×7, anywhere
- Pays on disability, not only on death
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.
01What 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.
02How The Disability Payout Is Worked Out
Death is straightforward — the nominee gets the full sum insured. Disability is settled on a scale printed in the policy, and it is worth showing that table to the customer at the counter.
- Permanent total disability — loss of both hands, both feet, or the sight of both eyes: 100% of the sum insured.
- Permanent partial disability — loss of one limb, one eye, or hearing in both ears: a fixed percentage of the sum insured, as listed in the schedule.
- Temporary total disability — a weekly benefit, usually 1% of the sum insured per week up to a stated ceiling, while the insured is unable to work at all.
Because occupation decides the risk, the premium is set by risk class: an office worker pays the least, a driver or a machine operator pays more, and a few very high-risk trades may need a specialised plan.
03Who 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.
04Personal 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.
05Group Cover For Shops, Factories And Transport Businesses
A group personal accident policy covers every employee under one contract, at a lower per-person premium than individual policies. For an owner it does two things at once: it looks after the staff, and it protects the business from having to pay a compensation award out of its own pocket.
- One policy, one renewal date and one premium for the whole team.
- Names can be added or removed during the year as staff change.
- Ideal for shops, small factories, transport fleets, security agencies and delivery teams.
- The premium is a business expense for the employer.
✓What the policy covers
- Accidental death — the full sum insured goes to the nominee.
- Permanent total disability that stops the insured from working at all.
- Permanent partial disability, paid as a percentage of the sum insured.
- Temporary total disability, paid as a weekly benefit during recovery.
- Hospital cash for each day of hospitalisation after an accident.
- Ambulance charges and, in some plans, the cost of an artificial limb.
- Children’s education benefit and funeral expenses, where the plan includes them.
- Accidents at work, at home, on the road and while travelling — the cover runs 24 hours a day.
✕What it does not cover
- Death or disability caused by illness — only accidents are covered.
- Suicide, attempted suicide and any self-inflicted injury.
- An accident while under the influence of alcohol or drugs.
- Injury during a criminal act committed by the insured.
- Adventure sports, racing and other hazardous activities, unless declared and accepted.
- Pregnancy, childbirth and any related complication.
- A disability that already existed before the policy started.
- War, invasion and nuclear risks.
On this page
Documents to bring
- Aadhaar card and PAN card of the insured
- Age proof
- Details of the occupation and the nature of the work
- Name, relationship and date of birth of the nominee
- Passport-size photograph
- Bank details, for the claim payout
Paydeer retailers
Issue Personal Accident Insurance from your own counter and earn on every policy and every renewal.
Become a partnerHow the policy is issued at a Paydeer outlet
Four steps from the counter to the policy PDF in the customer’s hand.
Take the basic details
Name, age, occupation and the nominee. Occupation is the one field that decides the premium, so it must be recorded accurately.
Fix the sum insured
About ten times the annual income is the sensible figure. The retailer can also add hospital cash and a weekly disability benefit.
Pay the premium
No medical test and no waiting period. Payment goes through the Paydeer wallet or is collected from the customer.
Policy is issued on the spot
The PDF is delivered within minutes and the cover generally starts the same day or the next day, as stated in the schedule.
Sell Personal Accident Insurance from your own shop
Compare plans from multiple insurers, issue the policy in minutes and earn a commission on every sale and every renewal — from the same Paydeer portal you already use for recharge, AEPS and bill payments.
Questions customers ask
The doubts that come up most often about Personal Accident Insurance, answered the way a retailer would explain them across the counter.
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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.
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My vehicle policy already gives ₹15 lakh accident cover. Is that enough?
That compulsory cover applies only to the owner-driver, and only while using the insured vehicle. A personal accident policy covers the customer everywhere — at work, at home, as a pedestrian or as a passenger.
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Is the cover valid outside India?
Most personal accident policies issued in India provide worldwide cover for the accident itself, while the claim is settled in India in rupees. The exact geographical scope is printed in the policy schedule.
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What does the family need to file a claim?
Intimation to the insurer as soon as possible, the FIR or police report, the medical or post-mortem report, the disability certificate from a government doctor for a disability claim, and the nominee’s identity and bank details.
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Can a housewife or a student take this policy?
Yes. Both are low-risk occupations and the premium is at the lowest end of the scale. The sum insured for a non-earning member is normally capped by the insurer, often at the level of the earning member’s cover.
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