Insurance: Health vs Medical vs Accidental — Here is why insurance agents sell them in combo

Health insurance or medical insurance plan is common among the Indian millennials, however, when it comes to pure accidental insurance plan, its takers are still very less. In fact, people hesitate taking a pure accidental plan citing an accident can lead you to hospitalisation for long which can be addressed by a health or medical plan while in case of death, they already have life insurance or term insurance. So, why to waste money on pure accidental insurance plan? Actually, the insurance agent also doesn't push for a pure accidental insurance plan. They ask a policy seeker to have a combo offer that would have combined benefit of both medical insurance, health insurance and the pure accidental insurance plan. 

When we talked to the investment experts in this regard, they said in unison that pure accidental insurance is the must and on why insurance agents are not selling a pure accidental insurance plan they said that they get very little commission in a pure accidental insurance plan as its premium is quite low. Therefore, to enhance their commission, the insurance agent prefers to sell health insurance, medical insurance and pure accidental insurance in a combo.

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Speaking on the matter SEBI registered Jitendra Solanki said, "The percentage of an insurance agent's commission in medical insurance, health insurance and pure accidental insurance is almost same. Since, a pure accidental insurance premium is very low, they prefer selling them with a medical insurance plan or with a health insurance plan or maybe with both."

On why people don't ask for a pure accidental insurance and buy them in combination from the insurance agents Kartik Jhaveri, Director — Wealth Management at Transcent Consultants said, "People think accidental insurance is not required for them as hospitalisation expenses post-accident is covered under a health or medical insurance plan while in case of severe accident leading to disability a compensation of paltry Rs 2 lakh to Rs 5 lakh won't be enough for them to survive post-accident. However, there are some exclusive benefits like monetary loss caused by accident like job loss, leave without pay or expenses on transportation during hospitalisation, etc. are all covered under an accidental plan which won't  be covered by either of the medical insurance or health insurance plan." Jhaveri said that like any other insurance a pure accidental insurance plan is a must for each and every individual and rather buying it in combo one should buy a pure accidental plan.