What Does Personal Accident Insurance Cover?

What Does Personal Accident Insurance Cover?

Most people know what insurance is. Yet, many don’t know what personal accident insurance is. In case you don’t know it already, it is a type of insurance that gives a financial support to the insured individual and their family when the insured individual suffers from injury, disability or death due to an accident. The question is, what does it cover?

Accidental Death

Accidental death is covered in personal accident insurance. The death here does not have to happen in an instant. Rather, it can happen within a given time frame, such as 12 months, after the accident happen. When an insured individual is dead, the insurance company will give compensation to their family.



When an insured individual had an accident and is disabled as a result, they will get compensation from the insurance company. As with accidental death, it does not have to happen in an instant. There is a given time frame, such as 12 months, after the accident happen. An insured individual can only claim compensation if the disablement prevents them from getting a job or engaging in any business.

The following are the disablements that prevent an individual from getting a job or engaging in any business: loss of both limbs, loss of sight from both eyes, loss of a limb and a sight from an eye, and loss of hearing and speech. If an insured individual has any of these disablements, they will receive compensation from the insurance company.

Some insurance policies also include injuries that result in permanent bedridden, total paralysis, incurable insanity as well as injuries that result in the inability to do three or more activities of daily living. The activities of daily living generally defined as eating, dressing, toileting, mobility, transferring, and washing.

Total or Partial Temporary Disablement

Temporary disablement is also covered, regardless whether it is total or partial. When an insured individual suffers from temporal disablement due to an accident, they will receive weekly benefits from the insurance company. These benefits can last up to 2 years. The amount of these weekly benefits are much less than the compensation for permanent total disability.


Medical Expenses

The insurance covers medical expenses in a given time frame, such as 12 months, that is necessary and still within a reasonable amount. When an individual needs medical care to treat their injuries after an accident, they can claim this coverage on a reimbursement basis. The maximum amount of expenses that are covered depends on the stated insured limit.

Hospital Cash

An insured individual can claim hospital cash only if they are hospitalized due to accidents. Other medical reasons, however, are not covered. The insured individual will then receive a daily benefit paid by the insurance company. How much the benefit depends on the plan and it is usually limited to a certain time frame.

These are what personal accident insurance covers. Accidents happen every day. It can happen to anyone including you. This is why having this type of insurance is always a good idea. In case you have an accident at least your beneficiary will receive a financial support. So, you may want to consider having one, if you haven’t already.

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