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Personal Accident

Rest Easy on Restless Roads with a Personal Accident Insurance

Rest Easy on Restless Roads with a Personal Accident Insurance

Explore the large differences in Personal Accident Insurance vs Health Insurance

Mr. Mohit Sawant is a 35-year-old investment banker living in Mumbai who has a wife and two young children. Being a smart middle-class Indian, he bought a health insurance with Rs 25 lakh cover for himself and his family three years ago.

During peak traffic time one day, Mr. Sawant was returning from office on his bike. He had to go through many traffic signals to reach home. As one of them turned green and Mr. Sawant began moving forward on his bike, he did not notice that a large concrete mixer truck that had broken the signal was coming in his direction at high speed.

Other motorists tried to scream and warn Mr. Sawant, but it was too late. The accident impact caused both Mr. Sawant and his bike to fly close to 15 feet. After the accident, as he was lying on the road bleeding, Mr. Sawant’s thoughts rotated around his family and the health insurance he had bought. His last thought before fainting was, “Thank God I have insurance…”

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There are 3 likely scenarios that emerge from the above story.

Scenario 1 – All’s Well (or Is It??)

Mr. Sawant survives the accident and wakes up in a few hours in a hospital with his wife and children around his bed. The doctor informs him that he is a very lucky man and there are no major injuries. He also tells him that he will be released in 4 – 5 days once his wounds have healed properly (4 – 5 days in a hospital will generate a bill of several lakhs).

When the hospital administrators come with bills asking for money for hospitalization, room rent, X-rays, treatments that have already been done, and so on, Mr. Sawant confidently tells them that his health insurance will take care of all expenses. But when he is informed that Health Insurance does not cover expenses towards accidental injuries, he is devastated. He realizes that a single accident is going to cost him lakhs of rupees.

Moral of the story – Only Personal Accident Insurance covers expenses towards accidental injury

Scenario 2 – Broken Bones and Shattered Aspirations

Mr. Sawant survives the accident but wakes up the next day in a hospital ICU. He is informed that the accident shattered his spinal cord and he will be confined to a wheelchair for the rest of his life. He has been disabled from the waist down.

A distressed Mr. Sawant then receives a second blow when he is informed that his health insurance plan does not cover expenses towards disabilities caused due to accidents. He goes into acute depression when he realizes that this one accident is not only going to cause him a loss of lakhs but is also going to stop him from earning for his family.

Moral of the story – Only Personal Accident Insurance covers expenses towards disabilities caused due to accidents

Scenario 3 – Death and Despair

Mr. Sawant never wakes up. Once the mourning period is over, Mrs. Sawant approaches the insurance company that sold the health insurance to her husband to file a claim. She is then informed that a health plan does not cover death due to an accident.

Mr. Sawant’s wife and children are left without emotional or financial support in this very difficult time for their family.

Moral of the story – Health Insurance DOES NOT cover death due to an accident, but Personal Accident Insurance does


Accidents are completely beyond our control and completely devastating for the victim and his/her family. Here are some stats from the National Crime Records Bureau:

  • There is one death every 4 minutes due to road accidents in India
  • Close to 1,50,000 people perished in road accidents in India in FY 2016-17
  • There are more than 1,400 road accidents every day in India

These are stats from road-related accidents alone. Just imagine the numbers when we add other causes, such as workplace accidents and medical negligence.

In Mr. Sawant’s story, there was nothing that he could have done to avoid the cement mixer truck. It was not Mr. Sawant’s fault, yet he and his family had to pay the price.

To discuss personal accident insurance policies in greater depth with an expert, write to us at or call 86-559-86-559.



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