Personal Accident Insurance in Cyprus in 2024. Best personal accident insurance in Cyprus.
Personal accident insurance in Cyprus
Personal accident insurance is an essential product for businessmen and self-employed people.
This type of insurance can provide a steady source of income for the insured if they become temporarily or permanently unable to work.
In this guide about personal accident insurance, we will explain the types available to you in Cyprus and what they cover in detail to help you find the correct insurance.
We will also support you in finding the best personal accident insurance in Cyprus after we examine the following topics.
Table of contents
- What is personal accident insurance?
- Personal accident insurance coverages
- Temporary disability insurance in Cyprus
- Total permanent disability insurance in Cyprus (TPD Insurance)
- Permanent partial disability insurance in Cyprus (PPD Insurance)
- Accidental death insurance in Cyprus
- Personal accident insurance in Cyprus: additional coverages
- How much is personal accident insurance in Cyprus?
- Affordable personal accident insurance in Cyprus
- Personal accident insurance quotes in Cyprus
What is personal accident insurance?
Personal accident insurance is an umbrella term that includes various insurance coverages.
Specifically, personal accident insurance policies usually include the following coverages.
- Temporary Disability Insurance
- Total Permanent Disability Insurance
- Permanent Partial Disability Insurance
- Accidental Death Insurance
Personal accident insurance generally provides coverage in case the insured cannot work due to an accident. It provides coverage for the following specific set of circumstances.
- Temporarily unable to work.
- Permanently unable to work.
- He is not able to perform his job as usual until the end of his life (permanently but partially able).
- Accidental death.
Personal accident insurance coverages in Cyprus
Personal accident insurance includes various insurance coverages, as mentioned above.
We will examine the coverages for each category in-depth below.
Temporary disability insurance in Cyprus
What is a temporary disability?
Being temporarily disabled is defined as the inability to work for weeks or months at a time due to an injury.
This injury is only temporary. Therefore, the worker can return to work once they are recovered.
What is temporary disability insurance?
Temporary disability insurance is a program that compensates you for each day you cannot work due to an accident.
The amount of the compensation is defined as the percentage of your salary registered in the social security authorities of Cyprus.
For example, if you choose 60% coverage and your salary is €2,500, personal accident insurance will compensate you €1,500 monthly for each month you cannot work.
How does temporary disability insurance work in Cyprus?
This insurance refers to businessmen, self-employed, and employees who are eligible to receive a steady source of income if they are temporarily unable to work due to an accident.
It’s important to note that the social security authorities only cover employee salaries in Cyprus at 50% for sick leave.
Firstly you pick a temporary disability program.
Some programs cover temporary disability exclusively for accidents, but there are also comprehensive programs that additionally cover illnesses.
As mentioned, then you pick a percentage of coverage based on your registered salary. The amount of coverage cannot exceed 100% of your salary.
The coverage of temporary disability insurance in most cases cannot exceed 24 months. After 24 months of coverage, the disability is considered a permanent disability.
Therefore, it’s always advisable to acquire an insurance package that includes both temporary and permanent disability insurance.
It’s also important to remember that most insurance packages have waiting periods.
Most insurance companies have a waiting period of 7 or 14 days, meaning the policy will only pay 7 or 14 days after the accident date.
Total permanent disability insurance in Cyprus (TPD Insurance)
What is a total permanent disability?
Total permanent disability (TPD) is the inability to carry out regular work duties as normal.
Permanent disability indicates a physical or mental impairment that indefinitely diminishes a worker’s ability to perform the duties or normal activities that the worker performed before the accident.
For insurance purposes, total permanent disability includes by default:
- Permanent loss of vision in both eyes.
- The total loss of arms or legs (both) or one arm above the wrist and one leg above the ankle.
How does total permanent disability insurance work in Cyprus?
Firstly you pick a TPD insurance program.
Some programs cover total permanent disability exclusively for accidents, but there are also comprehensive programs that additionally cover illnesses.
Unlike temporary disability, you don’t choose a monthly compensation amount. Instead, you choose a lump sum amount that is payable if you are diagnosed with a permanent disability.
Specifically, a licensed medical committee must conclude that the insured is permanently disabled.
Within 15 - 30 days of the confirmation by the medical committee, the insurance company will pay the lump-sum amount.
For example, suppose you have chosen an amount of €150,000. If you are diagnosed with a total permanent disability, you will receive €150,000.
Note: you cannot pick an amount disproportionate to your income, i.e., you cannot request coverage of €2 million if your monthly income is €2,500.
Furthermore, the maximum coverage amount you can choose decreases with increasing age. For example, you cannot request coverage of €1,000,000 if you are older than 60, regardless of your income.
Permanent partial disability insurance in Cyprus (PPD Insurance)
What is a permanent partial disability?
Permanent partial disability (PPD) is defined as a permanent disability that is only partial.
A worker has a PPD if they are injured at work and recover enough to return to work but still have a permanent impairment.
A permanent impairment makes it impossible to work at their full capacity.
For example, if a doctor (surgeon) loses vision in both eyes, this is considered a total permanent disability (TPD).
Nevertheless, if he loses his vision in one eye, then this is considered a permanent partial disability (PPD). Therefore, he can work until the end of his career but not at his full capacity.
How does permanent partial disability insurance work in Cyprus?
Permanent partial disability is always sold as part of permanent disability insurance.
Suppose you choose a total permanent disability lump-sum compensation amount of €300,000. As discussed, you will receive the whole amount of €300,000 for total permanent disability insurance.
For example, you will receive the full amount if you lose one leg because this is considered a total permanent disability.
Nevertheless, you will not receive the full lump sum amount for permanent partial disability insurance.
In this case, insurance companies use tables defining the compensation percentage for each type of permanent partial disability.
For example, the insurance company will pay you 50% of the lump sum amount if you lose vision in one eye, i.e., €150,000 (i.e., 50% on €300,000).
Another example is the insurance company will pay you 5% of the lump sum amount if you cut one finger off (i.e., 5% on €300,000 = €15,000).
This also depends on your profession.
For example, a professional musician is considered to have a total permanent disability if he loses one of his fingers and will thus be compensated with the whole lump-sum amount of €300,000.
Accidental death insurance in Cyprus
What is accidental death insurance?
Accidental death insurance is a category of life insurance that only pays out a lump-sum benefit to the insured’s family when the insured is in a covered accident that causes death.
Life insurance pays out for death by an accident or disease. In contrast, accidental death insurance compensates your family only if your death was caused by an accident.
How does accidental death insurance work in Cyprus?
First, you must pick a lump-sum amount that you want your family to receive in case of your death. The lump-sum amount should be proportional to your income.
The benefit is paid provided the loss of life.
It must be proven that the loss of life occurred within 365 days from the day of the accident (i.e., it should be proven that the death was caused by accident and not another cause).
If you are over 50 years old or have a pre-existing or past condition, you might need medical exams.
Accidental death and dismemberment (AD&D Insurance)
Accidental death insurance is typically sold with dismemberment insurance.
Dismemberment insurance encompasses:
- Total permanent disability
- Permanent partial disability
Personal accident insurance in Cyprus: additional coverages
These additional coverages are usually attached to a Personal Accident Insurance policy.
Surgical cash benefit in Cyprus
Suppose you are hospitalised due to an injury or illness as an in-patient, and you undergo surgery. In that case, an insurance company will undertake to pay your selected lump-sum amount regardless of the type of insurance.
For example, suppose the lump sum is €5,000. Every time you have an operation, you will be paid €5,000 regardless of whether you have health insurance.
Hospital cash benefit in Cyprus
If you are hospitalised due to an injury or illness as an in-patient, our company undertakes to pay a monthly benefit for a period of up to 24 months for each month you are hospitalised.
For example, suppose the amount is €1,000. In case you have to spend time in the hospital, in addition to the temporary disability insurance benefit, we will pay an additional €1,000 for each month you stay there.
This benefit might have waiting periods.
How much is personal accident insurance in Cyprus?
The following factors define the cost of personal accident insurance.
- Limit of coverage (either the lump-sum amount or the monthly amount of compensation).
- Age of the individual. The higher the age, the higher the cost of the insurance.
- Gender. Men usually have a higher mortality rate and pay higher premiums.
- Weight. According to the BMI ratio, being obese/overweight creates increased premiums.
- Smoking and alcohol. Premiums increase if you regularly drink alcohol and smoke.
- Medical history. Pre-existing conditions might increase premiums if the insurer provides those terms.
- Family or individual plan. Family plans are always cheaper per person than individual plans.
- The creditworthiness and the reputation of the insurance provider. Plans of international insurance companies in Cyprus are more expensive than those of local providers.
Affordable personal accident insurance in Cyprus
There is little difference between the cost of personal accident insurance plans between local insurance providers, as the competition between insurance companies in Cyprus is fierce.
For cheap personal accident insurance, you will find that local insurance companies are more affordable by default. Particularly, their plans might be 15% cheaper than those of international companies.
Nevertheless, if the premiums are significantly different, this means that the terms are different.
As always, read the full terms before you choose an insurance policy.
Best medical insurance in Cyprus
As discussed in this guide, the best personal accident insurance is subjective. Your needs will shape your insurance policy.
Through our many years of experience in the medical insurance sector, we have created affordable products to suit every individual’s needs, targets, and budget constraints.
Our insurance plans offer you the following benefits:
- Quick settlement of claims.
- Cover from only €25 per month.
- No medical questions.
- Plans are fully tax exempted. Businessmen can use the expenses as operating expenses for their companies.
With 35 years of insurance expertise, and US & UK underwriters, we offer you lower premiums than you would get by going directly to the insurance providers.
Communicate with one of our insurance specialists today. We will help you find the best medical insurance.
Personal accident insurance quotes in Cyprus
Pitsas Insurances is Cyprus’s largest expatriate insurance company and one of the largest personal accident insurance providers.
Follow this link to learn more about our personal accident insurance plans.
To receive free quotations from local and international providers, see here.
Pitsas Insurances Team