Is personal accident insurance necessary?

Hi Anon,

Personal accident is an additional and enhanced coverage, as most policies have certain limitations and do not extend their coverages to accident related claims.

Like if you go into an A & E after an accident and are not hospitalised you won't be able to make any claim with your current plans. This is just a very simple example, but there are added benefits for a personal accident plan. Some insurers cover insect bites and HFM under personal accident as well, so you have that coverage once you have an accident plan.

A personal accident plan forms part of the Accident & Health component for an insurance portfolio. While the premium is usually a sunk cost when no claims are made, it has certainly proved to be useful when you have an injury and requires outpatient treatment only.

For example, it could be a sprain that requires TCM treatment. However, you need to obtain MC for work and your workplace only recognises MC from a GP. Consequently, you need to seek medical advice from both a GP and TCM. For this purpose, a good personal accident plan will reimburse such costs to this end.

Having mentioned that, different personal accident plans may have different scope of coverage, alongside with its terms for compensation. Therefore, speak with your agent to find out more.

Personally, I feel that a personal accident plan is necessary for my portfolio. This is especially because of my recent injury which results in me having to work with only one hand for a couple of months now. And I'm glad that the plan pays me a decent amount of money every week to help me cover some cost.

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