Personal Accident Insurance may sound familiar to some people, especially those who know about Life Insurance, because personal accident is an additional benefit of a Life Insurance product.
What exactly is a personal accident insurance?
Personal Accident Insurance is an insurance policy that gives protection against the risk of death, permanent disability and the cost of treatment that caused by an accident.
Protection offered include the risk of accidents that can occur anywhere start from your home, work environment or in other public places.
According to the regulatory (OJK – Otoritas Jasa Keuangan) personal accident insurance is an insurance that covers the insured from an accident within certain period.
The coverage period depends on the agreement between insurance company and the policy holder.
This insurance can be purchased by people who are 17 to 60 years old, either individually, group or companies.
Why do people need to buy Personal Accident Insurance?
- High Accident Risk Level
Risk is something that we cannot control because it occurs suddenly. Every places have their own risk start from our home environment, on your way to your regular activity and while you doing your activity.
- Relatively Cheaper Premium Prices
Personal accident insurance is one of general insurance product that have lower premium price when compared to Life Insurance product such as Unit-link. The reason for lower premium priceis because Personal Accident Claim only related to an accident not a disease nor illness.
- Complete Risk Coverage
Benefits received start from; medical expenses, disability and death protection with low premium. Personal Accident on Life Insurance product usually only cover for death and permanent disability.
- Reduce Financial Loss In The Event Of An Accident
Having a personal accident insurance for your protection give you the benefit of reducing your financial loss when an accident occurs.
Protection against financial losses due to accident in personal accident policy are:
- Coverage for medical expenses
- Replacement income when the insured could not work anymore due to an accident.
- Compensation money for the family when the accident caused death to the insured, along with funeral cost.
- Family Requires a Cost of Living Need
Protecting your family who depend on you is one of the strong reasons why Personal Accident Insurance is needed. If anything happen to you (the insured) then youra family would receive a substitute income to pay for their life expenses for period of time.
The benefits for Personal Accident Insurance:
Three condition guarantee by personal accident insurance are:
Death benefit will be paid by the insurance company if it met one of the three following:
- The insured dies within 12 months of the accident, or
- The insured is declared missing or not found fo 60 days after the accident occurred, or
- The insured dies from poisoning, because inhaling toxic gas, suffocation or drowning.
- Permanent Dissability
Insurance company will provide compensation if there is a risk of permanent disability cause by the accident as stated in the policy. Total and partial disability are the term in permanent disability, here are the differences:
- Total Permanent Disability
Disability caused by an accident so the insured experience the following:
- Loss sight of both eyes
- Loss or malfunction of both arms
- Loss or malfunction of both legs
- Loss or malfunction of one eye and one arm, one eye and one leg or one leg and one arm
- Insanity or paralysis as a result of an accident which continues until 12 months after the incident
- Partial Disability
Disability which caused by an accident as a result part of the body become dysfunctional. Partial disability should get a notice from the doctor that stated part of the insured body become permanently dysfunctional.
- Medical Expenses
Insurance company will provide compensation to replace the cost of treatment that occurs due to the accident. Every insurance company has different requirements for this type of guarantee.
Having a Personal Accident Insurance to protect you from the risk of accident and secure your family life expenses when accident occurs is a wise choice for everyone..
Protect youself and your family from life risk!