Buy the government’s ₹20-a-year cover first. Then buy a standalone accident policy. In that order. Accident cover is the only product that pays you when a crash ends your ability to earn but does not kill you. Term insurance pays on death. Health cover pays the hospital. Neither one replaces thirty years of lost pay.
You will notice there is no “top 5 policies” table below. That is on purpose. We say why further down.
Which route to accident cover should you take first?
We rank the routes, not the brands. That is the choice a reader really faces. Most people should end up holding two or three of these at once.
| Route | What it costs | What it pays | Key condition | Who it suits |
|---|---|---|---|---|
| 1. PMSBY (government scheme) | ₹20 a year | ₹2,00,000 on accidental death or permanent total disability; ₹1,00,000 on partial disability | Ages 18 to 70, bank account, auto-debit, cover runs 1 June to 31 May | Everybody, without exception |
| 2. Standalone individual policy | Priced on your job risk class and sum insured | Death, permanent total, permanent partial and temporary total disablement | The cover follows you between jobs | Anyone whose household lives on their pay |
| 3. Employer group cover | Usually free to you | Set by the employer, often a multiple of salary | Ends the day you leave the job | A useful top-up, never the whole plan |
| 4. Rider on a term policy | A small addition to the term premium | Usually death and permanent disability only | The sum is often capped against the base cover | People already buying term insurance |
| 5. Free cover on a credit card | Nothing extra | Varies widely by card | Often tied to paying for the ticket with that card | Treat as a bonus, never as cover |
Why start with a ₹20 government scheme?
The Pradhan Mantri Suraksha Bima Yojana costs ₹20 a year. The bank debits it from your account. It pays ₹2,00,000 if an accident kills you or leaves you fully disabled. It pays ₹1,00,000 for partial disability. You need a bank account and an age between 18 and 70. Cover runs from 1 June to 31 May.
Two lakh rupees will not carry a household for long. But the price is twenty rupees. There is no case against holding it. There is a strong case for it, which comes next.
Can you claim from more than one accident policy?
Yes. This is the most useful thing to know here. The IRDAI master circular on health cover is blunt about benefit-based policies. When the insured event happens, “the policyholders can claim from all Insurers under all policies”.
Accident policies are benefit-based. They pay a fixed sum on a defined event. They do not pay back a bill. So PMSBY, your work cover and your own policy do not cancel out. Each one pays in full.
Health cover works the other way. There, the firms share one bill between them. Under section 2(6C) of the Insurance Act, 1938, accident cover sits inside health business. So the health circular applies to it.
Why the disability payout matters more than the death payout
Nearly every accident policy leads with the death benefit. That is its least useful part. If you hold term insurance, your death is covered already, and for far more.
Now think about the other case. You survive, but you can never work again. Your pay stops. Your care costs rise and stay high. Your health cover pays for treatment. Then the policy year ends and it pays nothing towards rent or school fees. Term insurance pays nothing at all, because you are alive.
That case is worse than death, in money terms. Nothing else you own covers it. So size the cover against your future pay, not against the price. A fair floor is to match your term cover. Most people set that at ten to fifteen times yearly income.
Check the two middle categories as well. Partial cover pays a set share of the sum insured against a scale. Loss of a hand, an eye, a thumb: each has a listed percentage. Temporary cover pays you weekly while you cannot work at all. That weekly payout is what quietly saves a self-employed household.
Why there is no ranking of the best accident policies here
Because we cannot build one honestly. A ranked table needs three things. Price for the same risk. The partial disability scale. And claim outcomes for this one line of business.
IRDAI publishes claim data by insurer. It does not break it out for accident cover by product. Premiums also swing with your job risk class. Two people get different quotes for the same policy. A table built on less than that would be invented. An invented ranking on a disability product is worse than none. Our page on the claim settlement ratio explains what insurer-level data can and cannot tell you.
What we can give you is the order to compare in. First the partial disability scale. Then the weekly payout and its cap. Then the exclusion list. Price last.
What to read in the wording before you buy
Every accident policy carries exclusions. They differ between firms. Ask about injury while drunk. Ask about self-inflicted injury, risky sports, war, and any disability you already have. Get each answer from the wording, not from a call centre.
Check your job risk class too. Firms band jobs by risk. The band sets your price, and sometimes the cover on offer. If your work changed after you bought the policy, tell them.
Three IRDAI rules are worth knowing. You get a 30-day free look period once the policy document reaches you. Read it properly, and cancel if it is wrong. After 60 months of unbroken cover, no claim can be refused for non-disclosure, except where fraud is proved. And if the ombudsman rules for you, the firm must comply in 30 days or pay you ₹5,000 a day. See our guide to IRDAI rules and grievance redressal.
Frequently asked questions
Do I need accident cover if I already have term and health insurance?
Yes, if you earn. Term insurance pays only on death. Health cover pays only the medical bill, and only within the policy year. Neither replaces the pay you lose when an accident ends your working life. That gap is why the product exists.
Is PMSBY enough on its own?
No. It pays ₹2,00,000 on accidental death or full disability. For a one-income household that covers a few months, not a lifetime. Take it because it costs ₹20 a year. Then buy real cover on top.
Can I claim from two accident policies for the same accident?
Yes. The IRDAI master circular says that for benefit-based policies, you can claim from all insurers under all policies. Accident cover is benefit-based. PMSBY, your work cover and your own policy each pay their full sum.
How much accident cover should I take?
Enough to replace your pay for the years you had left to work. Matching your term insurance sum is a sound start. For most people that is ten to fifteen times yearly income. Then check the weekly payout is large enough to cover your monthly bills.
Is accident cover the same as an accidental death rider?
No, and the gap is expensive. A rider on a term policy pays only if you die. A full accident policy also pays on permanent and temporary disability. Check which one your rider really is before you lean on it.
Sources
- Department of Financial Services, Ministry of Finance, Pradhan Mantri Suraksha Bima Yojana — ₹20 annual premium, ages 18 to 70, ₹2 lakh on death or permanent total disability, ₹1 lakh on partial disability, cover year 1 June to 31 May. Primary source.
- IRDAI, Master Circular on Health Insurance Business, ref IRDAI/HLT/CIR/PRO/84/5/2024, dated 29 May 2024 — benefit-based policies may be claimed from all insurers; 30-day free look period; 60-month moratorium; ombudsman award compliance within 30 days or ₹5,000 a day. Primary source.
- Insurance Act, 1938, section 2(6C) — places personal accident and travel cover inside health insurance business.
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