Which of the following best describes personal accident insurance?

Personal accident insurance primarily focuses on providing financial benefits to the insured or their beneficiaries in the event of accidental injuries or death. The essence of this type of insurance lies in offering a predetermined lump sum payment for specific types of injuries or disabilities that may result from accidents. This can include a range of scenarios such as loss of limbs, paralysis, or even accidental death.

This coverage is crucial for those who may face significant financial burdens due to the inability to work or the costs of rehabilitation following an accident. It is a focused form of insurance that addresses the risks associated with accidents rather than broader health concerns or income loss, which may not be adequately covered under personal accident policies.

In contrast, the other options misrepresent the nature of personal accident insurance. For instance, while loss of income is a concern after an accident, this insurance specifically does not cover ongoing income loss; it is more concerned with fixed monetary benefits for defined injuries. Similarly, comprehensive health insurance or life insurance with accident riders encompasses a wider array of coverage that extends beyond the defined scope of personal accident insurance, which is distinctly targeted at the effects of accidents specifically.