Personal Accident Insurance Explained

In Singapore, the policies for Personal Accident insurance usually cover death as a result of accidents, funding of dependants, as well as daily cash stipends amongst other accidents.

The cover depends on what you want to be covered against among other things such as a provision for emergency medical evacuation, personal liability, leisure, and sports.

Personal Accident insurance

Personal Accident insurance is intended to provide financial support to you and your family in case an accident occurs. In the unfortunate event that you pass on or left disabled permanently, your Personal Accident plan can provide financial assistance.

Your insurer will cover part of the medical expenses after the accident. There are different types of policies that can cover you in various ways. Therefore, it is essential to understand the Personal Accident cover policies that insurers offer.

Death as a result of an accident

If you have a Personal Accident cover and pass on within 12 months of the accident, your family can receive 100% of the amount insured.

However, it must be proved that the death was a result of the accident. Should the death be a natural death or from an illness or an injury that was not related to the accident, coverage is not provided.

Complete permanent disability

Similarly, if you are rendered disabled within 12 months from the date of the accident, you are entitled to compensation.

Consideration is only given if you lose both hands, eyes, feet, become deaf, or lose speech. Should any of these things happen and leave you unable to perform any job, your Personal Accident plan will provide coverage.

Partial disability

If you are partially disabled after an accident, the cover you are entitled to is reduced to a fraction of the total amount insured.

For instance, if you lose an eye during the accident, you are allowed to claim 20% of the amount insured. For a more comprehensive breakdown of your Personal Accident plan, speak to your insurance agent. Remember to ask as many questions as you need.

Temporal disability

In the case of an accident that renders you temporarily disabled and unable to work, you are eligible to receive compensation until you are fully recovered.

These benefits usually take the form of a weekly allowance. However, if you are disabled entirely and are unable to return to work, you will receive the entire lump sum as per complete, permanent disability.

Medical costs

With a Personal Accident cover, should you be hospitalised you will be able to claim your medical expenses. However, take note that the benefit is partial compared to health insurance. This is due to the fact that it does not cover all treatment types.

Medical evacuation

In the circumstance where you are involved in an accident while abroad some of the insurance policies can take care of the costs of evacuation or in case, you die they can repatriate your body back home.

Why opt for Personal Accident insurance?

Accidents occur all the time. Before deciding to purchase a Personal Accident cover, weigh your options.

Consider the risks posed by your job and work environment. Should you work in a high-risk job, a Personal Accident plan can be beneficial.

Similarly, if you consider yourself an adrenaline-junkie who enjoys high-risk sports – a Personal Accident plan is something to consider.  Alternatively, cyclists who prefer road cycling should also protect themselves with a cover.