What Does Personal Accident Insurance Cover?Accidental Death: 100% of sum insured paid to nominee.Permanent Total Disability: 100% payout (loss of both limbs, both eyes, etc.).Permanent Partial Disability: Percentage payout based on disability level (e.g., loss of one eye = 50%).Temporary Total Disability: Weekly benefit (1% of SI per week) for recovery period.Medical Expenses: Some plans cover accident-related hospital bills (separate from health insurance).PA Insurance vs Life Insurance vs Health InsuranceFeaturePersonal AccidentTerm Life InsuranceHealth InsuranceCovers deathAccident onlyAny cause✗Covers disability✓ (accident)✗✗Covers hospitalizationSome plans✗✓Premium (₹50L cover)₹1,000-2,000/yr₹8,000-12,000/yr₹6,000-10,000/yrClaim triggerAccident eventDeathHospitalization⚠ Important: PA insurance does NOT replace term life insurance. Term insurance covers death from any cause (illness, accident, natural). PA only covers accidents. You need both.Who Needs Personal Accident Insurance?

Everyone, but especially: (a) Sole breadwinners — disability can stop your income permanently, (b) Two-wheeler riders — highest accident risk in India, (c) Self-employed professionals — no employer-provided cover, (d) Frequent travelers — road and air travel increases exposure, (e) People with home loans — EMI doesn't stop if you're disabled.

How Much Cover Do You Need?

Calculate: Annual Income × Remaining Working Years. A 30-year-old earning ₹10 Lakh/year with 30 working years remaining needs at least ₹50 Lakh PA cover. This ensures income replacement during total disability.

Exclusions to Watch ForSelf-inflicted injuries or suicide attemptsAccidents under influence of alcohol or drugsWar, terrorism, and nuclear eventsPre-existing physical disabilitiesParticipation in hazardous sports (unless covered by rider)Accidents while committing a crimeFrequently Asked QuestionsIs PA insurance mandatory for two-wheeler owners?

Yes! IRDAI mandates a ₹15 Lakh personal accident cover for owner-drivers of two-wheelers and four-wheelers. This is included in your motor insurance policy, but standalone PA insurance provides higher coverage.

Can I claim both PA and health insurance for the same accident?

Yes. PA insurance pays a lump sum regardless of medical bills. Health insurance reimburses hospital expenses. Both are independent — you can claim from both simultaneously.

Personal Accident Insurance: ₹50 Lakh Cover for Just ₹1,000/Year

By Admin • Feb 23, 2026 • 📖 4 min read • ✅ Updated Feb 24, 2026

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Admin

Insurance & financial content specialist at PolicyBaazar. Helping Indians make informed insurance decisions with expert analysis and unbiased reviews.

📅 Published: Feb 23, 2026 🔄 Updated: Feb 24, 2026 📖 810 words ⏱️ 4 min read

Personal Accident Insurance: ₹50 Lakh Cover for Just ₹1,000/Year

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