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