February 22, 2016

Personal Accident Insurance

You can either take a Personal Accident (PA) Policy for yourself or on the life of another person, e.g. your spouse. Policy can also be issued to cover groups of individuals, e.g. a group policy on your family or a group policy taken by an employer on its employees.

What is covered in a PA policy?
The types of cover vary from insurance company to insurance company but usually includes:
– Accident death;
– Permanent total or partial disablement;
– Temporary total or partial disablement;
– Medical expenses;
– Corrective surgery;
– Hospitalisation benefits; and
– Funeral expenses.

However, your standard PA policy usually DOES NOT cover death, disability or injury due to:
– War;
– Terrorism;
– Suicide and insanity;
– Self-inflicted injury;
– AIDS;
– Provoked murder or assault;
– Childbirth, pregnancy or miscarriage;
– Dangerous sports; and
– Operating or riding a two-wheel motor vehicle, e.g. motor cycle.

What other exclusions are there in a PA policy?
You may not be able to obtain a PA policy if you are a:
– Policeman/military personnel or other law enforcement officer;
– Diver;
– Pilot or crew member;
– Aircraft tester;
– Racing driver;
– Seaman and sea fisherman; or
– Professional sports person.

Some PA policies also set the age limits on the insured. Some of the above exclusions can be covered on payment of additional premiums.

Naming a beneficiary
You need to name a person as beneficiary to receive the money to be paid under the policy. This can be made at the time when you apply for a PA policy or at any time after the policy is issued. You should also tell the person that you have named him as beneficiary of your PA policy.

Multiple Insurance
This term means you have more than one PA policy. If you do, upon your death or disablement, you or your beneficiary (as the case may be) will be paid under each policy you bought. However, for certain claims, such as medical expenses, you may claim from only one PA policy. If what you claimed is more than what is payable to you under the PA policy, you may claim the difference from the second policy and so on. However, you cannot claim more then the total amount of medical expenses that you have paid.

You must declare any other PA policy which you have bought in the proposal form. If you are buying extra PA cover from other insurance companies, you also need to tell your insurance companies (if any) about it.