The scope of cover and scale of benefits differ between insurance companies and therefore before purchasing a policy you should ensure that it meets your requirements. The types of coverage normally provided under a PA policy include accidental death, corrective surgery, permanent disablement, temporary or partial disablement, hospitalization benefits, medical expenses and funeral expenses.

All these PA benefits look attractive but can also cost you high. For instance, when the basic plan offers accidental death, PTD and PPD benefit for a sum assured of 10 lakh can be secured at 1,100-1,200 per year, but TTD benefits may cost almost 50 percent more than the basic plan. More the features you add more you have to pay, it might be from 10 percent to 30 percent or more.

"Your approach to buying personal accident insurance cover should be—first buy a basic cover; if you have money go for more features, and if your budget still permits, go for a high sum assured," says Sudhir Sarnobat, CEO, medimanage.com, a health insurance advisory.