What is Personal Accident Insurance? Personal Accident Insurance in Cyprus in 2022
Personal accident insurance is a type of insurance that offers you financial compensation should you suffer an accident that leads to injury, disablement, or death. One of its main benefits is that it is applicable everywhere in the world, meaning that unlike many other types of insurances, you will be covered no matter where the accident happens.
Three types of events are covered by personal accident insurance. These include temporary disability, permanent disability, and death. In the first two events, the insured will be eligible for the compensation agreed upon under the policy. Otherwise, the nominees will be paid the entire sum.
Here’s what this article will cover:
- How does personal accident insurance work?
- Differences between PAI and health insurance
- Types of personal accident insurance
- What to consider when buying personal accident insurance
How does Personal Accident Insurance Work?
Here’s a simplified overview of how personal accident insurance usually works:
- Choose a personal accident insurance provider.
- Give all the details asked of you.
- Choose the duration of the insurance cover.
- Select the scope of the insurance cover.
- Decide on a monthly premium.
At this point, the insurer will provide you with a quote. If you are satisfied with the terms offered, sign the dotted line, and your personal accident insurance will kick-off.
Personal Accident Insurance vs. Health Insurance
Personal accident insurance and health insurance differ in key aspects, including:
- Personal accident insurance plans will not offer financial compensation to cover health conditions, critical illnesses, sickness, and diseases. In contrast, all these risks are covered under your health insurance policy.
- Personal accident insurance policies typically have cheaper premiums than health insurance policies. This makes PAI plans a viable option for anyone who wants to guard themselves against unforeseen accidents.
All in all, personal accident insurance plans usually have a narrower scope compared to health insurance policies. The former also attract potential customers with relatively cheaper premiums.
Types of Personal Accident Insurance plans
Different insurance providers offer different personal accident insurance plans. Some of these policies only cover cases of death. Others provide financial cover in the event of temporary or permanent disability. There are some that will cover all three instances.
At Pitsas Insurances, we offer four personal accident insurance plans:
Plan A: Accidental Death & Permanent Disability Insurance
This PAI plan covers death and permanent disability caused by an unforeseen accident. It doesn’t cover any conditions caused by a disease. If you sign up for this plan, you will be offered compensation in the event of mutilation, vision loss, or hearing loss caused by an accident.
Anyone aged between 18 and 64 can sign up for our accidental death and permanent disability insurance plan. The coverage will continue until the insured turns 70. We also provide the insured the option to include all their family members in the plan.
Plan B: Accidental Outpatient Medical Expenses Coverage
This PAI plan covers unexpected medical bills resulting from an accident. Our purpose behind offering this plan is to give the insurer the peace of mind that, should anything untoward happen to them, all their out-of-pocket medical bills will be taken care of.
What is more, the protection provided by this plan will not end once you are discharged from the hospital. Even after you return home and recuperate, we will continue paying your medical bills for the first 4 ½ years (52) weeks from when you suffered the accident.
Plan C: Income Protection, Surgical & Hospital Cash Benefit
This PAI plan takes care of the insured and their family. It does that by offering financial compensation as well as income protection in the event of permanent disability or death.
Our income protection, surgical, and hospital cash benefit plan also has a few add-ons. You can choose to include an ‘optional surgical benefit of up to 5.000 euros’ in this plan. Optional benefits for an exclusive nurse, diagnostic tests, and medical visits can also be added to the policy.
Plan D: Income Protection, Accident Outpatient Medical Expenses & Hospital Cash Benefit
This is by far our most comprehensive PAI plan. It is offered in three tiers: silver, gold, and platinum. All three are similar in that they cover everything from temporary disability to death. Plus, they also offer monthly benefits for up to 2 years due to absence caused by accident.
Bear in mind, though, that all three plans offer different financial covers. For instance, while the silver plan offers €42.716 in the event of death, the platinum package’s death cover is more than double. Check out our personal accident insurance plans’ page to find out more.
Factors to Consider While Buying Personal Accident Insurance
Here are the factors you must consider when buying a personal accident insurance policy:
Your PAI plan must cover all the activities in your daily life that may result in serious injury or death, whether at the workplace or home. If you are a frequent international traveler, your PAI plan must also offer overseas coverage.
Benefits to family
Draw a straight line between the benefits to the family and the merits of a PAI plan. The higher the benefits that will go to the insured’s loved ones, the better off they will be in the scenario of something untoward happening to the insured.
You need to strike the optimum balance between the premium and insurance coverage. While the premium should not be high enough to drain all your savings, it should also not be low enough to deprive you of the coverage you will need.
Regardless of which plan you are leaning towards; you will always find specific events under the policy’s ‘exclusions’ tab and you should check those carefully. If you feel that the excluded events are of importance to you, switch to another plan.
Claim settlement process
Here is where the insurance provider’s reputation comes in. Review user feedback to check how swiftly or otherwise the insurer settles claims. Needless to say, an insurer that takes months to settle claims should not be on your list.
In this article, we have hopefully covered everything when it comes to the main things you need to know about personal insurance, how it works, and how you can choose the best PAI plan for yourself and your family. Now, it is up to you to select the PAI policy that will work the best for you and your loved ones.