How does an accident insurance policy differ from standard health insurance?

An accident insurance policy is specifically designed to provide financial support in the event of injuries resulting from an accident. One of the key features of such a policy is that it typically offers a lump-sum payment to the insured for accidental injuries, which can help cover various expenses related to the incident. This benefit serves as a quick financial resource for individuals who may need immediate help following an accident, allowing them to address medical bills, lost income, or other costs that arise from their injury.

In contrast, standard health insurance generally covers a broader range of medical services and treatments for various health issues, not limited to accidents. It typically involves more comprehensive care, including preventive services, routine check-ups, and treatments for chronic conditions. This extended coverage comes with multiple limitations and terms, including deductibles, copayments, and service provider networks, which dictate how and when benefits can be accessed.

The other options do not accurately reflect the unique characteristics of accident insurance. It does not cover all medical services, nor does it address only employer-related injuries, as it applies to anyone who suffers an accidental injury. Lastly, while accident insurance may have certain limitations, saying it has "no coverage limitations" is misleading and does not capture the nature of how these policies