Best Accidental Insurance Policy in India-How to choose them?

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Recently one reader of this blog raised an interesting question. He asked me, what is the necessary when we have health insurance and any hospitalization due to accident also be covered under health insurance? Looks great but in reality health insurance and accidental insurance are two different products meant for different requirement. So let us discuss about this today.

These days there is huge buzz about buying term plans online.  At the same time few go ahead and buy health insurance too (even if employer providing them). But there is less knowledge spreading about accidental insurance which is most cheapest than the other two mentioned products.

What is Accidental Insurance Policy?

These policies are like health insurance policies which means it will be yearly contract between you and insurance company.  Unlike Term Insurance where insurance companies offer maximum around 20 times of your yearly income, here in accidental insurance it actually depends on company to company and also your profession matter utmost here. If your profession is more prone to accident, then insurance companies may offer less sum insured or may raise premium.  Also one more interesting point that differs from life and health insurance is, here your premium is not fixed on your age, but the profession you are into. So these policies will come into picture when you met with any accident. Accident in the sense sudden, unforeseen or unexpected.

Usually your profession is divided to different categories to arrive at premium.

Level 1- Administrative/managing functions, accountants, doctors, lawyers, architects, teachers or software engineers etc.

Level 2-Manual labour, garage mechanic, machine operator, paid drivers, cash carrying employee, builder, contractor, veterinary doctor etc.

Level 3-Workers in underground mines, electric installations with high tension supply, circus performers mountaineers, professional river rafters etc.

So any effect to your body due to accident is covered in such policies.  But such accident must not be suicide, self injury or war etc. Below are the benefits covered under accidental health insurance policies.

DeathIf death occurs due to accident then full sum assured will be payable to nominee. Do remember that in case of life insurance your nominee will receive equal to sum assured in case of death due to natural or accidental. But in case of accidental insurance your nominee will receive sum assured only in case of accidental death but not normal death.

Along with this sum assured payment, in few policies you will receive children education bonus which is around Rs.5,000 per child (maximum 2 children) or 10% of sum assured whichever is lower.

Permanent Total Disablement-Due accident if insured disabled for life then you will receive equal to sum assured or in few products around 115% to 120% of sum assured. Example of such accidents are like loss of both hands or legs, loss of one hand and one leg, loss of limb (hand/foot) and an eye, loss of sight of both eyes, loss of speech and hearing of both ears etc.

Permanent Partial Disablement-As name itself suggests, if someone met with permanent partial disability but not like permanent disability as said above then insurance companies will pay you some % of sum assured depending on the case. Usually definition of permanent partial disability changes from insurer to insurer. Hence the % of payout will also differ.

Temporary Total Disablement-In some cases you met with accident with minor injuries where your doctor may suggest for few days or week bed rest to recover fully. In such situation insurance companies will usually pay some % of sum assured as benefit. Again this definition changes from company to company. 

Other than above said features, you will also find some interesting offers from insurers like family discounts, cumulative bonus for each claim free year, medical expenses or hospital confinement allowance. Few companies offer this policy to non earning persons also.

Tax Benefit of buying Accidental Insurance Policy– There is no tax benefit under current income tax law to claim for deduction. But I have not got a clear ruling whether the claim received from such policies will be exempt from tax like life insurance. Let me find the real rules on the same and will update.

Below I tried to find out and do some comparison of available accidental insurance plans in India. List is not exhaustive and few options I am unable to find. Hence I am sharing with you whatever I found. For detailed features and quotes I suggest you to contact individual insurance company. Below premiums are for Level 1 professionals.

Best Accidental Insurance Policy


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116 Responses

  1. Is it more cost effective to get standalone personal accident insurance or include it as a rider while purchasing life insurance policy?

      1. Thanks for your prompt response. I was looking into some of the policies available & was surprised to find that only Apollo Munich & Religare give policy of 50L SI. The cost quoted by Religare for individual policy is very much higher than the cost quoted by Apollo for a Self+Spouse+Child policy. Is there a catch here that I am missing or Apollo is ahead of the competition?

  2. Sir waiting for updated accident insurance list (and its importance for mech/elect/chem engg.) of this year because could not find bharti axa personal accident on their please describe in post “The difference between personal accident rider vs seperate personal accident policy” differences because riders are very cheap compared to separate policy…and this need to renew after 3 years as i know from max bupa website.

    1. Dear Maunish,
      Bharati Axa definitely offering the product. Please check with them. When you buy as a rider, then the benefits are limited and proportional to sum assured you opted in Life Insurance, which is not the case with standalone accidental insurance.

  3. I have mentioned that i will smoke and drink alcohol in term plan. After conducting the all medical tests they have issued the term policy from aditya birla. my existing policy is one year old. this i am looking to change to split the same SI as two 50 lakh plans. One is from Max online term plan and Aegon term plan, to have spousal cover.
    In my existing plan of aditya all medical reacords are OK. now i will try to switch before 2 months of renewal i will go ahead if i didnt get the policy i will continue with my existing plan only.
    If in vcase of death due to smoke/Drinking, If doctor mention the same in reports is my nominee will get the claim? even i have disclosed to the insurer?

  4. Dear Sir,

    My salary is 14 lakh CTC per Anum

    1. I am 38 years old, my spouse is 29 years,My kid is 3.5 years old.Currently i am having 5 lakh Helath plan from appolo munich( Optima restore) other than corporate plan. including No claim Bonus 7.5 lakh
    2. 1crore term plan from Aditya birla ( ) 30 lakhs accidental death rider.
    3. Having Individual Critical Illness plans for my wife and my self from Max bupa ( 1O lakh SI)
    3. Seperate health plan for mother from Cigna TTK 4.5 lakh SI and Cancer care policy for my kid from Future genrali.
    4. Planing to take one more health plan with 5 or 10 lakh SI.
    5. Interested to take Personnel accident policy, Which is better one
    Mine is admin job so obviuosly premium will be less. Kindly advise me weather taking for family is better or individual is better, For kid it will cover or not?
    looking for the all following features in accidental care plan
    • No requirement of medical tests and documentation
    • Substantial cover for lower premium
    • Worldwide coverage
    • Can be bought by individual or by family
    • Easy and certified claim process
    • 24×7 support service
    • Legal and Funeral expenses
    • Child education benefit
    • Double indemnity for death/ disability while traveling in public transport
    • Accidental death
    • Permanent total/ partial disability
    • Accidental dismemberment
    • Medical expenses/ hospitalization charges
    • Child education support
    • Life support benefit
    • Burns, broken bones and Ambulance
    • Daily allowance
    In case of not able to attend duty due to accident/ Financial benefit
    Out patient benefits.

    I would like to request you to suggest me which is better to use during the hospital admission due to any accident not only road accident, weather health cashless card is better or Accidental policy better.
    If i use health cashless card can i get all the above benefits from accidental plan including medical expenses,treatment charges…etc
    how much accidental plan SI taking is better as per my portfolio. kindly suggest taking individual is better or family is better. What about the kid? how can i ensure his coverage?

    Plss give me proper reply and advise me the best accidental plan.

  5. Do you have any positive or negative opinion about Oriental or iffcko if I may ask

    2) Will definately check with insurance company but wanted to know if you would suggest 25 lakh policy or something like a 15 lakh ?

  6. Hello Basu,

    Wonderful article on personal Accident . Need your expert suggestion on choosing the “right” personal accident policy

    1) I have been suggested Oriental & Iffcko Tokio Personal Accident Insurance. In the above blogpost ( 2014) there is no mention of these two companies . Right now would be recommend these options or not ?

    2) My father is 61 years and currently having an annual salary of around 8 lakhs . Should he buy a policy of 25 lakhs or lesser ( considering his income will be reducing further in the coming years – semi retirement )

    1. Varun-1) If the products available and suitable to your budget and feature, then why not go with them NOW also?
      2) Yes, but hard to say which company offers. You have to check the respective insurance company and buy it.

  7. Hello Basavraj,

    I just bought 5 lakhs sum assured health insurance which i plan to stay invested in for near future by paying regular premium. i also have 1.3 crore Term insurance (from 2 separate insurers)
    My question is if i buy a personal accident plan ,does it make sense to have add on of:
    a) Accidental Hospitalization Expenses Cover
    b) Accidental Hospital Daily Allowance

    if it is already covered in health insurance ?


      1. hi Basavraj,

        Thanks for the reply ! what exactly is meant by accidental insurance features not covered by health insurance plans ?
        my health insurance states the below:

        The Policy covers Reasonable and Customary Charges
        incurred towards medical treatment taken during the Policy
        Period for an Illness, Accident or condition described below
        if this is contracted or sustained by an Insured Person during
        the Policy Period and subject always to the Sum Insured, any
        subsidiary limit specified in the Product Benefits Table,e
        medical treatment.

        i was just talking about if health insurance states it covers expense of accident, why should we buy “Accidental hospitalization expense cover” ? is it not the same ?

        Thanks Again !


        1. just to add on top. i am buying PA cover and not neglecting it, it’s just the add on part i am confused about add on part of hospitalization cover in PA, which i think i am already getting in my health insurance. hope i made myself clear 🙂

        2. Rohan-They are clearly stating that they cover HOSPITALISATION expenses due to the accident, but what if you bedridden due to the accident and not hospitalized?? There comes the accidental insurance which may be you based on the disability %.

          1. thanks a lot Basavraj !

            Considering my total 1.3 crores Life cover and 5 lakhs (private) + 4 lakh (company) healthcare.. what should be my ideal accident cover ?
            i was thinking of 25 lakhs (also have Pradhan mantri accident insurance of 2 lakhs) ,is it optimal or shall i increase to 50 lakh. also i liked Star health accident care among all the others after exhaustive comparison.

            Let me know your thoughts about the same !


  8. Dear sir,
    1. In column of Bharti Axa you have mentioned cumulative bonus as 5% per claim free year. what is the meaning of that?
    Also children education bonus 10,000 means??? Please explain
    2. If possible, please tell claim settlement ratio of Bharti Axa & Max Bupa
    3. Recently i have purchased term insurance plan iProtect smart & I want to buy accidental insurance with total & permanent disability.
    u have not mentioned appollo munich in the list. Why??

    Please reply

    1. Sachin-1) Let us assume there are no claims in particular year, then 5% of sum insured will be added to next year sum assured.
      2) You may check IRDA Annual Report.
      3) There is no specific reason. It was the old post. May be missed it updating later.

  9. This information is based on 2014 ?
    Do we have any updates for 2016 ?
    May be some companies would have improved the overall benefits to compete with others?

    Kindly advise

  10. What is the Best accidental insurance plan if you were to invest among those available in market
    I already have term insurnace cover from ICICI and Medical insurance through National Health

    I want to go for an standalone accidental isnurance and hence require your judgement to shortlist the best accidental insurance as per your experience or feedback at present 2016 Nov

  11. hi i want to take accidental insurance policy for my DAD who is a farmer by profession with income around 1 lac per year.. but no evidence available for income..can i take policy for him

  12. Hi Sir,

    I need your advice regarding two personal accident policies.

    I have applied for Apollo Munich by directly going to their office in Hyderabad and paid the amount. They are providing 10 times of Annual Income. As my Annual income is 6.4 L, I applied for 50 Lakhs.

    In the afternoon, I called Max Bupa for another 25 Lakhs Personal Accident policy as they are providing Maximum 12 times of Annual Income, which comes around 75 Lakhs. I thought, as I have taken 50 Lakhs policy from Apollo Munich, I am only eligible for another 25 Lakhs only. But the customer care of Max Bupa told me that I can take any number of policies from Individual companies and said I can take even 50 or 75 Lakhs from them. I was in a hurry to get the policy as I thought being uninsured is a risk. As I did not had any reference number of Apollo Munich policy and also as customer care said that it is not required to mention other policy details, I have applied for 50 Lakhs policy with Max Bupa as well.

    I received the policy from Max Bupa on the next day but still Apollo Munich haven’t issued policy. So, I e-mailed them stating that I have received Max Bupa policy and to update it in proposal form. I received call from the person from Apollo who taken my proposal form and he says that claim is based on the human value and if I claim with Max Bupa for 50 Lakhs then I may not be eligible with Apollo and if I claim with Apollo for 50 Lakhs then I can only claim for 25 Lakhs as per their “12 times” condition. Is this true.?

    I have read some where that in respect of benefit policies like the Personal Accident policy, where a fixed compensation is paid, no matter what the actual loss is, one may obtain more than one policy.

    As it is advised to have PA Sum Assured equal to life cover or more and as no company is providing above 12 times of Annual Income, we are supposed to take multiple PA Policies.

    I think that Apollo person is wrong but not sure. I was in hurry to take the policy to provide protection for family. Need your valuable advice in this regard please.

      1. Thanks a lot for the clarification sir. Is it necessary to inform the other insurance company about the existing policies in case of Personal Accident insurance. I know it is a must in case of Life Insurance policy and it better to inform in PA as well but I have applied for both policies on the same day but received policy document (soft-copy) on different dates.

          1. Thanks a lot for quick response and clarification sir.

            Sir, during online application for Max Bupa, only 2-3 questions were asked and payment done. But in the policy document, there are more than 10 questions which mentioned as NO. There very few discrepancies. When I asked Customer Care, they said that “those questions are applicable only for Critical Care policy and you may ignore”. I assume that they correct but I am concerned about anything in written and incorrect information. There is no reply from Email support even after 2 days regarding this.

            Sorry for troubling you with so many questions. Pls clarify sir.

            1. Raghav-If while filling the questionnaire online, more questions not asked to you then why you have to worry? It is as per your knowledge you answered. Wait for their reply. If you have reference number (auto reply to your email), then call customer care with that particular number and enquire when you can accept the reply.

  13. Hy, I Am Male, 34 , employee. I want a accident and medical cover policy with low premium up to 65 years. My annual income is Rs 6 Lakhs.

  14. Hi Basavaraj,
    Myself Suraj Rai, my age is 26. I am a Senior Ops executive in card manufacturing firm. My spouse is 28 years old and we are having 7 months baby boy. My Father-government employee- age is 55 and My mother’s age is 53. I have purchased a 2 bedroom flat in Virar Mumbai for real estate purpose recently. It will act as a investment as well. My spouse is also earning member. My current take home salary is 32, 000 while wife earns 13, 000. So net take home earning is 45000. After a year EMI will start which will be 44500 . I have approx 144500 Rs in savings account. My primary concern is tax saving as well as insurance cover with investment another target.

    1. Can I claim tax benefit on my present Pre_Emi payment?

    I have decided to take One Term Insurance Policy, one Accidental Insurance Policy.

    2. Can you please Suggest me one pure life insurance term policy and one accidental and disability cover with good support?
    I have already taken MaxBuppa Family first silver plan with 18,00,000 Rs coverage. EMI stands at 15,872 Rs. Please note I have taken home loan of 36 lakhs. For this I have taken 35,00,000 lakhs home loan insurance from ICICI Lombard using one time payment mode. It will be valid for ten years till 15 May 2026. Further I have taken life cover against home loan of approx Rs 35 Laks from Bharati Axa Life Loan Secure and Bharati life group accidental death rider of Rs approx 35 Lakhs. Policy started this August only with one time payment amount of 102000 Rs approx. Further I have taken LIC new Jeevan anand with profits. Policy started in this August only with total 35 years with basic sum assured of 8,00,000 and return of 40,00,000 minimum against EMI of 24,000_maximum.
    3. Any specific suggestion for lon term investment?

    Please note as I am young and more eagerness to take risk for growth. Further most of my life long impact decisions I have taken in last six months only. Please review same and advice if somewhere course correction is required.

    Suraj Rai

  15. Hi Mr Basu,
    I am looking for a life insurance which provides monthly compensation apart from life cover. Till now I have only found HDFC which provides rider for the same, policy premium is approx. Rs 6850 for 34 years with for lump sum amount of Rs 50,00,000. and monthly income of Rs 50,000 per month for a period of 10 years if you are disabled. (they have defined the conditions of disability). My question is, are there any other similar policies of other companies focussing on monthly compensation after accident apart from your lump sum amount i.e life cover respite your monthly income due to disability ?

  16. Hi Basavraj

    First of all thanks for such a nice article and replies to all those queries. Good job. I am 35 years, banker, with monthly income 1 L plus. I want to take a Personal Accident Insurance for myself and wife (around 25-50 L). Point is: I want a policy which covers TERRORISM as well as the insurance company having good track record for claims payout. Cost of policy doesn’t matter. I have checked with Bajaj, Tata and SBI – They don’t cover TERRORISM related deaths/accidents in Personal Accident Insurance policies.
    Can you please suggest me some other alternatives as per my requirement?

    Thanks in advance

        1. Sir,

          Future Generali & ICICI Lombard both says they cover Terrorism in website but the Policy Wordings are different.

          FG “War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, commotion unrest, rebellion, revolution, insurrection, military or usurped power or confiscation or nationalization or requisition of or damage or under the order of any government or public authority”.

          ICICI “Nuclear, Chemical, Biological Terrorism Exclusion Clause: This Policy shall not extend to cover death, disablement (whether of a permanent nature or of a temporary nature), Injury, disease, illness, Hospitalization of Insured Person resulting directly or indirectly arising out of, contributed to or caused by, or resulting from or in connection with any act of Nuclear, Chemical, Biological Terrorism (as defined below) regardless of any other cause or event contributing concurrently or in any other sequence to the loss.”

          This is for your info only.

  17. Hello Sir,

    My monthly income is around 80K and worked under IT sector. In my family my spouse, 2 kids (8 and 3 yrs. old)
    I am looking for purchasing insurances for my self and for my family.

    Currently insurance we have as follows,
    1. Self term insurance Max life online, = 50L from
    2. Religear Care medical insurance with LT top up = 10 L
    3. Wife’s Medical from Orental = 4 L

    Please suggest insurance for me and my family like Accidental (Me), Critical Care, Life etc.

    Thanks in advance,

      1. Hi Basavaraj,

        I completely agree with you that I need more life insurance and other.

        Please suggest so that I would think and purchase.


          1. Thanks for sharing your inputs.

            Could you please suggest me with which company should I go for Life Ins. cover. & also I opted for PA with Apollo Munich – Premium plan of 50Lac.

            Please suggest.


  18. hi…
    last year i encountered with SBI Accidental insurance,which needs renewal every year. here by paying 1000 rs/anum and getting insurance of 20 lakh. Is it worth to take or should i go for some other plan. pls guide.


    1. hi
      this is SBI Personal Accident Insurance.
      i have some more queries

      1)Should i go for lumpsum SA or incremental income in case of term insurance.
      2)If on comparing pure term insurance+general accidental insurance,it comes out to be more than term insurance with accidental rider then what should i opt.
      3)if accidental insurances can be taken annual renewal bases like above SBI one.
      If you have some good accidental insurance references then please provide.

      1. Atul-1) Incremental. 2) If you feel that no additional benefit of going for separate accidental insurance from general insurer, then you can buy it as rider. But I am sure that you missed something and wrongly pointing that standalone accidental insurance not offer you additional features. 3) I am not sure of what you are talking.

        1. hi….
          SBI Personal Accident Insurance is giving accidental insurance of 20lac for Rs. 1000 premium per annum…but it requires renewal every it worth to consider. Pls guide.

          1. Atul-Suggest you to go for incremental sum assured set at around 7% inflation rate. If you buy the non-incremental term insurance, then you have to review your insurance once in a 5 years and buy the additional cover.

            1. Sir,
              I have short listed two companies for term plan
              Aegon life
              ICICI prudential life
              out of two which would u suggest.

              one more query
              in ICICI for 1 crore Additional accidental Death cover they are charging 5 to 6000 additional premium but for same SA ,I am not finding any other general insurance company (accidental Death)
              Pls guide.

  19. Hi Basu,

    Is it good to purchase Personal Accident insurance with medical expenses (hospitalization + medicine) covered as I am already having a separate Health insurance.


      1. Hi Basu,

        Thanks for your replay. Yes its a normal feature in Apollo. But in Bajaj Allianz they have given it as optional.


        1. there is one thing though, PA’ MEB will cover those expenses when hospitalization was not required, whereas mediclaim specifically needs 24hr in hospital.

  20. Hi Basu,

    can u pls help us understand more abt accidental benefit riders

    can u claim ADB in LIC if death occurs by natural death or terrorists attack or murder?? maybe inclusions/exclusions


  21. Hi Basavaraj,

    Thanks for your informative articles. I am 36 years old working in IT field, staying with wife and a 6-year old daughter. As per my study, I have shortlisted Apollo Munich and Bajaj for Personal Accident insurance.

    Which of these two is better, from features and company reliability perspective? Some difference in premium does not matter much. If both are good, which one do you personally suggest, based on your experience? Or is there any better company offering better policy/features? Thanks in advance.

    Best Regards,
    Ravi A.

        1. typo – I meant 25lac. So if u need more than that, then Apollo will offer. In Apollo too, Premium plan will be reqd if u need more than 50lac.

  22. Hi Sir,

    I am 23 year old IT professional (Network Eng.) and would like to buy a personal Accident insurance policy where medical expenses (hospitalization + medicine) also covered. In a month 5-7 days i am working on field (Clint Location).

  23. Hi,

    Is acidental Insurance policy based on Salary ? My uncle is working as a Driver and his annual salary is 200000.How much max sum insured we can get ? And is there anyway insurance companies will decline plans for DRIVERS?

    1. Jegan-It is more than on profession. If risky profession then they may issue lesser insurance. You have to discuss with individual insurers of your choice to know how much they offer you. I can’t say in that.

      1. Thanks,

        Can you explain about the Maximum coverage Limit for TERM insurance and Personnel Accident insurance?

        For term insurance,for a salaried person of 2 lak per annum with 45 age,whats the max sum assured can get ? Is there any thumb rule like 10 times of salary ?

        1. Jegan-For term ideally insurance companies offer around 20-25 times of your income (but again it depends on your health and age). Accidental insurance depends your age and profession. Check the same with respective insurer.

  24. Dear Sir,

    1. My age is 29 Years, please suggest what is the best Policy Term for Term Plan according to my age.
    2. I had gone through your valuable posts, it is advised that you should buy Term Plan and Accidental Permanent Total Disability riders separately. But sir the if we try to buy separately the maximum SA is 15 Lac and the Policy term is less than 20 Years. But in case of SBI Smart Shield you can buy it as rider for 30 Years. Please suggest can we go with SBI Smart Shield.
    3. According the my research by reading posts of scholars like you, i had came to a conclusion that LIC, ICICI Pru, HDFC and SBI Life is safe to insure with….Am i right……see my problem is i want to buy a term plan with Accidental Permanent total disability rider which is only offered by SBI Smart Life……Sir i want your suggest is it ok to buy From SBI LIFE….Thanks

    Thanks a lot in advance….

    1. V Singh-1) Ideal insurance term must be up to your working age.
      2) I don’t know which accidental policy restrict the sum assured and term. Because there are many products which offers more than what you said. Can you name specifically?
      3) Yes, company choice is best. But I still insist you to separate accidental insurance.

      1. accidental policy: ICICI Lombard, SBI Individual Accidental etc. Please sir can you tell me accidental policy which offers SA upto 30Lac and Policy term upto 30 Years….

        Thanks a lot sir for your kind reply…..

  25. dear sir,I indrajeet singh wants to know your suggestion that i have just applied for term plan 50 lakhs from maxlife and in medical column i didnot showed my mother as dibetes because her sugar level is at very initial level i.e 90/140-100/150 .does it requires to mention sometimes she uses 1/2 pills of antisugar as prescribed by the doctor . pl suggest me whether i should inform the max life about that or not. also tell whether the company i chosed is ok or not. thanks

      1. thanks sir for your advice, i have informed them. sir i have also forgotten to mention my present insuranaces cover but i have send them message by email. is it sufficent from my side.

  26. Hi Basu,

    I am 34 year old IT professional and would like to buy a personal Accident insurance policy. Please let me know the best PA policy available with highest claim rate. (Both Public + Private insurance).


  27. I read lot of on accidental insurance plans and companies but no one suggest new india insurance company plans. can you give details about new india insurance company plans because it govt. owned company and provides benefit in low premium.

  28. Hi,
    I am looking for an accidental policy where Temporary Total Disablement is also covered. But major companies like MaxBupa, HDFC Ergo, Bharti Axa etc, don’t give this. Please suggest.



    1. I have checked National Insurance and Apollo Munich, both offering it. Apollo Munich offering medical expenses also.
      Basu, please advise if any other offering it.

  29. Hi Basavaraj,
    This is Hari Babu, My age is 25. I am a Software Professional. I am decided to take One Term Insurance Policy, one Accidental Insurance Policy, and one Health Insurance Policy for me as well as for my parents also.

    My Father age is 48 and My mother’s age is 40.

    Can you please Suggest me Which on is good in Term Insurance Policy either LIC or SBI ?
    And, Can you please suggest me Which Health Insurance Policies are good according to Claim Settlement Ratio’s?

    Thanks & Regards,

  30. You have not compared nationalized insurance companies. Is their track record not good?

    What is the best policy if I was to take for covering 28 Lakhs home loan – for 8 years in my mind – if death occur during pendency of hoam loan?

    Thanks in advance

    1. Neeraj-There is no differentiation between private and nationalized. I just did based on product features. Home loan insurance is separate part. Don’t compare that with accident. To cover your home loan, I suggest you to buy term insurance.

  31. Bassunivash,
    I went through details. and I was speaking to IDBI bank Insurance agent. And he told me that IDBI has removed the both riders for ‘Partial disabilities’ and ‘Total Disabilities’. The reason given was.. there were many claimsn coming under this category, and Banks rejecting and lastly ending up in court for settlement.

    So I do agree to point of Vihsal on understanding the Granular details of each company. But I do not know, where do get these informations and what has been your experience.

  32. Dear Basu,

    Thanks for the great article. You could make the article more exhaustive by covering the following:

    1. How wide are the definitions of ‘Partial disabilities’ and ‘Total Disabilities’ whether permanent or temporary as covered by these insurers.

    2. What is the scale of their operations.

    3. Analysis of data related to claim settlement of Accident policies.

    Point 1 would require going through policy wordings, whereas point 2 and 3 can be gleaned from IRDA website. Every insurer files an annual report regarding data for each type of policies offered by them.


    1. Vishal-Thanks for your finds and my answers are as below.
      1) It is very difficult to go through individual company definition of what is the meaning of Partial Disabilities and Total Disabilities. It involves few medical terminologies and definition varies company to company. Hence hard to generalize the things.
      2) Let us a big company rejects your claim due to some issues which are totally wrong to you. Then scale of business matters? But I agree that we can build the faith with their business scale.
      3) I already posted claim settlement ratios of Life and Health. In future I will try to do it for Accidental Insurance too.

      Let me try to fetch data from IRDA regarding your point nos 2 and 3. Thanks for your suggestion 🙂

      1. Thanks for quick reply. My thoughts are:

        1. Definitions are actually very important. An insurer can easily design very narrow definitions to limit the scope of the policy and still make it look attractive by way of lower premiums. Though, their settlement ratio might suffer if they mis-sell. Many insurers already have limited definition of partial disabilities. An example, Wording the policy to allow compensating for loss of ‘index’ finger instead of loss of ‘any’ finger. Then, in latter case, your claim will stand rejected.

        2. Scale of operation puts the claim ratios in perspective. I would be far more comfortable with 95% settlement in 14000 cases compared to 98% settlement in 45 cases. It also indicates the experience of the company in claim handling. It is like comparing consistency of mutual funds.

        Do you find these points relevant?

        1. Vishal- 1) I agree, but what I am pointing here is, it is difficult to sum up all companies definition here. It is overview of definition but not exhaustive.
          2) But do you feel claim settlement data will give you the real picture?? I doubt, until and unless we get detailed report from IRDA.

  33. Hi BasuNivesh,

    I need your assistance in choosing the best medical insurance for my parents. There age are as below:
    Father: 65
    Mother: 50

    Could you please guide me in choosing best insurance plan.

    Thanks in advance!


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