Personal Accident Insurance (FAQ)
Accidents are a part of life and may happen at any time, but they may also leave you unable to work and provide for your loved ones. A Personal Accident Insurance policy may help you get back on your feet.
1.How is an accident defined?
An accident can be any sudden, unintended external event which might cause an individual bodily harm and lead to a temporary or permanent physical disability or death.
2.What is Personal Accident Insurance?
Personal Accident Insurance provides compensation in the unfortunate event of an either fatal accident or one that disables you permanently or temporarily. In the case of a less severe injury that leaves you unable to work for a few weeks, for example, you may be paid weekly until you are able to return to work. Some types of work - e.g. carpentry, building or hairdressing - may also not be an option if you sustain certain injuries, so personal insurance can help fund the costs of retraining for a new kind of occupation. Should the accident cause death, the amount is payable to whoever you define as your beneficiary.
3.Why should I get Personal Accident insurance if I have Life or Health Insurance?
A health insurance policy provides compensation in case of illness and any expenses that might arise because of it. Life insurance offers a death benefit to the person/people you name as your beneficiaries once you pass away. A Personal Accident insurance, however, guards you against financial loss that could arise due to the accidental permanent total disability or accidental death of an earning family member, thus securing the future of any dependents.
4.Do I need to buy individual policies for each family member or can one policy cover my entire family?
There are family packages available under a Personal Accident policy, whereby the proposer, spouse and dependent children can all be covered under a single policy.
5.What is Permanent Total Disablement, Permanent Partial Disablement and Temporary Disablement?
If an accident causes permanent total disablement, that means it is irrecoverable and completely prevents the insured person from engaging in any kind of gainful employment (e.g. paralysis, loss of two limbs, etc.) In this case, most insurance companies pay compensation that corresponds to 100% of the sum insured.
If the accident causes permanent partial disablement, it is also an injury that cannot be healed (e.g. loss of a limb or an eye) and may also prevent the insured from engaging in their line of work. Here, the compensation paid by the insurance company may start from 5% of the sum insured and go up to 100%, depending on the disability.
A temporary disablement is an injury that may be total or partial, but only for a temporary time period, during which the insured cannot entirely and continuously perform every task pertaining to their occupation. In this case, the amount of compensation is determined by the company who may pay a percentage of the sum insured or a maximum amount on a weekly basis.
6.Do premiums change according to my occupation?
Yes. Each occupation has its own unique set of risks, but as certain occupations are definitely more dangerous than others, this will be taken into account when calculating the cost of a policy.
7.What is excluded in a Personal Accident policy?
Common exclusions include injuries incurred after engaging in dangerous sports, while under the influence of alcohol or drugs, intentional self-injury or attempted suicide, resulting directly or indirectly from pregnancy or childbirth, as well as injuries sustained during war hostilities.
For any further questions regarding Personal Accident Insurance, do not hesitate to contact us by email at [email protected]