Personal Accident Insurance

What is personal accident insurance?

Personal Accident (PA) insurance pays a benefit if you suffer accidental death or disability. Unlike health insurance (which reimburses hospital bills), PA pays a fixed lump sum or income directly to you or your nominee — money your family can use however they need, regardless of medical expenses.

Accidents are sudden and unpredictable, and for a breadwinner, a serious injury can cut off income overnight. PA insurance is one of the most affordable covers available — a small annual premium secures a large sum — making it a smart, essential layer of protection for every earning person.

Benefits covered

Saral Suraksha Bima — the standard PA policy

Saral Suraksha Bima is IRDAI's standardised personal accident policy, offered by all general and health insurers since April 2021. Because it's standardised, the core features are the same across insurers, making it transparent and easy to compare.

• Mandatory covers: Accidental Death, Permanent Total Disability (PTD), Permanent Partial Disability (PPD).
• Optional add-ons: Temporary Total Disablement (TTD weekly income), accident hospitalisation, education grant.
• Cumulative bonus: sum insured increases ~5% for each claim-free year, up to a maximum of 50%.
• Affordable: high sums insured are available at a modest premium.

PA vs life vs health insurance

PA is not a substitute for life or health insurance — it fills the gap they leave, especially for disability and income loss from accidents. Ideally, you hold all three.

Group Personal Accident (for employees)

Employers can cover their workforce with a Group PA policy — an affordable, valuable benefit that pays for accidental death and disability of employees. It's often recommended that the sum insured reflect 2–5× an employee's annual salary for meaningful protection.

• Low-cost supplement to salary and other benefits.
• Covers partial disability and temporary disability that other policies may not.
• Useful for factories, transport, field staff and any workforce exposed to accident risk.

How much cover should you take?

A common guideline is a sum insured of about 10–15× your annual income, so the payout can genuinely replace lost earning power. For TTD (weekly income), eligibility is usually linked to your income. I help you choose a sum insured that truly protects your family without overpaying.

Tax benefit

The accidental death benefit paid to the nominee is generally tax-free under Section 10(10D) of the Income Tax Act. Premiums and any deductions depend on the policy type and current tax rules — confirm your specific position with a tax advisor.

How to claim — step by step

1. Intimate immediately: Inform the insurer (and me) as soon as the accident occurs.
2. FIR / medical records: File an FIR where applicable; gather medical reports and certificates.
3. Submit documents: Claim form, policy copy, FIR, medical/disability certificate, and (for death) death certificate and nominee KYC.
4. Assessment: The insurer assesses the claim against the policy's benefit table.
5. Settlement: The lump sum or weekly benefit is paid to you or your nominee.

Frequently asked questions

Related insurance & guides

Disclaimer & compliance: Binod Kumar Shukla provides insurance advisory and policy assistance for multiple insurers. Policies are issued subject to the underwriting guidelines of the respective insurance companies, and premiums are governed by the insurer and IRDAI regulations. Benefit percentages and definitions vary by policy and insurer. Tax benefits are subject to prevailing tax laws. Policy issuance and claim settlement are subject to insurer underwriting terms and IRDAI regulations. Insurance is the subject matter of solicitation. This page is for information only and does not constitute a contract of insurance.