People tend to associate the word accident more often that not, in terms of a vehicle collision. That is far from true, as you could be sipping on a cup of “Joe” at the coffee house and the waiter going around pouring refills may accidentally drop the entire hot pot of coffee on you, causing you injury.
There is no way to prevent an accident from happening. That is why its called an accident, it happens completely without intent and puts you under unfortunate circumstances.
What is Personal Accident Insurance?
In the simplest form, personal accident policy covers you should an accident befall you. The policy covers against injuries, disabilities and death, and in some cases it also provides you with worldwide 24 hours coverage.
Here are some scenarios that could help expand the common accident stereotype and how a personal accident policy could help.
When Will it Cover You?
Coverage and compensation should normally be paid out to the insured or beneficiary as long as it does not fall under the list of exclusions. If you fell into a manhole while you were intoxicated, the insurance company has the authority to not pay your claims. Despite the scenario being an accident, being under the influence could void the claim.
Remember there was a time not too long ago where escalator accidents were rampant? There were children who were severely injured and it also was the cause of death for some people. It is something very unpredictable and is extremely difficult to prepare for. Should someone experience such a horrendous ordeal of injury or death, the personal accident insurance would provide compensation to the nominated beneficiary.
No doubt that scenario is a little far fetched, and most people won't be able to relate to such incidents. How about walking in to a restaurant or cafe which has just mopped their floor. Without realising, you walk in and slip on the wet floor while accidentally executing some fantastic break dance moves that no one has ever seen before. Your ego won't be compensated, however your physical injuries can be.
Is it Practical?
A personal accident insurance could be considered limited as it only protects you from accidental harm. Should you have a heart attack in your sleep, you will not receive any compensation. Having said that, the premiums on personal accident policies are significantly lower as compared to medical insurance.
If you are one of the many Malaysians who takes public transport on a regular basis and lives on a budget, most personal accident policies also give you double the coverage should the accident arise while travelling on public transport.
We know how medical insurance is very important to us especially with all the rising cost of living. If you can't afford a medical insurance policy, you could always opt for a personal accident coverage first so you have some form of protection in case of an accident and add on extra coverage as your financial standing improves.
If you would like to know more about personal accident policies check out our previous article on our website.
Do you think you would opt for a personal accident policy or just risk it? Tell us in the comments below.