The Lowdown on Personal Accident Insurance

The Lowdown on Personal Accident Insurance

Personal accident insurance and cover may seem a luxurious extra for many. However, this annual policy can come in handy. Cover for injury, disability or death is granted in the event of accidental, violent or external events. However, bear in mind: it is quite different from both health and life insurance.

injured man personal accident insurance

Personal accident cover is available in many forms. Individuals can use it to cover themselves. In addition, family or group personal accident insurance is available.

What this policy covers you for can vary depending on who you sign up with.

And for the most part, it covers you 24 hours a day, worldwide.

Buying Personal Accident Insurance – Things you should know

When buying personal accident insurance, you should be aware of a few things. Below we’ve listed the most important points.

  • Scale of Benefits: This refers to the amount of compensation you receive. Compensation is due when the insured is injured, disabled or loses a limb. Compensation is calculated based on the loss suffered. For example: losing an index finger can be 10% of the sum insured. This of course depends on your contract.
  • Beneficiary: The general advice is that you should choose a ‘beneficiary’. This beneficiary must be aware of the policies you’ve taken out. Typically, a beneficiary receives compensation should you die.
  • Multiple Coverage: You can take out multiple PA insurance policies. Should you be injured, become disabled (or die), you and your beneficiary will receive compensation from each policy.

With PA cover, you should also be aware of coverage and exclusions. For example…

People in “high risk” jobs are often excluded from personal accident insurance policies.

What are these professions? Examples include those working in the military, policy, pilots (and crew members), race car drivers, professional sportspersons and aircraft testers.

In addition, there may be a range of age limits. This depends on policy.

Exclusions

Exclusions are also included in many personal accident insurance plans. The following events and occurrences often do not warrant compensation from a PA plan. These can include…

  • Suicide, mental instability, self-inflicted injury.
  • War, terrorism, provoked murder/assault.
  • Anything that occurs under the influence of alcohol/drugs.
  • Anything stemming from pregnancy or childbirth.
  • Dangerous sports.

Other things to be aware of

For the most part, personal accident insurance plans are designed to protect you everywhere, all the time. However, this may not always be the case. It is up to you to determine where you’ll be covered. For example, your policy may stipulate that you are not covered abroad. Or, you will receive basic worldwide coverage. However, there may be a list of exclusions.

If you are a frequent traveller, always make sure your policy covers you. If you have questions, don’t be afraid to ask. And remember: this is best done before you sign your contract!

Personal Accident Insurance on Car Cover: Avoiding the Confusion

If you own a car, your current personal accident insurance may not cover you. It could be that your current policy considers driving to be a “high risk” endeavour. However, there is good news. Many comprehensive car policies include personal accident cover. At least, many insurers don’t mind providing if you pay an extra premium.

Note: Maybe you already have this and know it. Still, make sure to double check your policy. You may not be covered to the level you need.

Personal accident cover comes in many shapes and sizes. Some policies are only designed for specific situations. Others are a load broader. In all cases, it is best to speak to your provider and understand exactly what you get for the premium you currently pay.