Personal Accident Insurance: Frequently Asked Questions
The amount payable for medical expenses is always indicated on the insurance policy.
I have motor insurance, do I still need personal accident insurance?
Yes. Motor insurance covers the vehicle and passengers, the driver is not included in the policy and thus a personal accident cover for you as the driver is important.
What is Personal Accident Insurance and why should you have it?
Personal Accident Insurance or PA Insurance is an annual policy which provides compensation in the event of injuries, disability or death caused by accidental, external and visible events.
Why do I need personal accident insurance?
What would you do if you were injured and lost a limb or was injured severely? Think of how much time it would take to get better. How much time will you lose at work? If your injury resulted in death, how would it affect your loved ones?
The financial and emotional costs from accidents can be devastating. Personal Accident insurance comes in to provide a cushion or compensation in the event of such accidents.
What does Personal Accident Insurance cover?
A typical personal accident insurance policy has the following benefits:( i) Accidental death benefit- This benefit is paid to the appointed beneficiary in the event of death of the insured from an accident.
( ii) Permanent disability- If the insured is permanently disabled, they are compensated by payment of 100 % of the amount of insurance. If the insured is partially, but permanently, disabled, a portion of the insurance amount is paid out. The policy document sets out the percentage benefits payable.
( iii) Temporary disability- when the insured person is temporarily disabled and cannot work, a weekly benefit equivalent to the individual’ s weekly earnings, is paid out for a maximum of 104 weeks( 2 years).
( iv) Medical expenses- the insurance covers hospitalisation resulting from an accident. This also covers surgery and medication.
Are there exclusions in personal accident insurance?
The personal accident insurance does not apply if the insured is injured, disabled or dies under the following circumstances;
a. From intentional self-injury, suicide or attempted suicide. b. Whilst under the influence of alcohol or drugs. c. Whilst engaging in flying or air travel of any kind other than as a fare paying passenger in a regularly scheduled flight. d. Arising from the insured committing any breach of law with criminal intent e. Resulting from pregnancy or child birth f. From service in the armed forces
Will my job affect the insurance premium I will be expected to pay?
Yes. The type of work one does determines how much insurance premium one is expected to pay. Reason for this is that some occupations are more exposed to accidents than others. Insurance companies have categorized them into three classes as below; a.
Class I
This class includes accountants, doctors, architects, teachers, bankersand persons engaged in administration factors. People in this class usually pay the lowest premium. b.
Class II
This class includes builders, contractors, and engineers engaged insupervisory functions only, veterinary doctors, paid drivers, motormechanics and machine operators.
People in this class usually pay higher premiums than those in Class I c.
Class III
This class includes people working in underground mines, explosives, electrical, winter, sports mountaineering etc. Individuals in this class usually pay the highest premium as they are highly exposed to accidents.
8 September 2017