What is Accident Only Insurance?

Accident only insurance is for what it sounds like - accidents. Here's how it works.

Accident only insurance is a standalone insurance that pays benefits to the policyholder in the case of an accidental injury. Usually, these policies pay a monthly or lump sum benefit to help you pay your bills and take care of debts while you recover. Depending on the policy, accident-only insurance can protect you against:

  • Serious bodily injury
  • Death

Compare accident and illness income insurance

Note: The following policies offer accident plus illness income protection. You may be offered just accident cover if you're not eligible for illness cover.

Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
Virgin Income Protection
Cover for 1,000 job types - full-time, part-time and self-employed.

5 years
14, 28, 60, or 90 days
nib Income Protection
Receive one month's premiums free if you pay annually. T&Cs apply.

24 months
14 or 28 days
Insuranceline Rate Saver Income Protection
Get a $100 bonus gift after holding cover for 2 months. T&Cs apply. Offer ends 31 March 2020.
5 years
14, 28, 60 or 90 days
NobleOak Income Protection
Get your first month free. T&Cs apply.
2 years or to the age of 65
30 or 90 days
AAMI Income Protection
Get cover up to a maximum of $10,000 of your monthly income.
24 months
30 days
Medibank Income Protection
Get a quote and you could win a $1,000 eftpos Gift Card. Offer ends 19 January 2020. T&Cs apply.
5 years
30 or 90 days
ANZ Income Protection
Receive up to $10,000 per month if you're unable to work due to serious illness or injury.
5 years
30 or 90 days
Zurich Ezicover Income Protection
Get your first month free. T&Cs apply.
5 years
30, 60 or 90 days

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Some policies will limit payout depending upon the type of accident the policyholder incurs, and the type of employment that you engage in can impact how an accidental insurance policy pays out. It is important to compare your options when choosing an insurance policy, as the right one can provide the peace of mind that you and your family are covered in case of an accident.

What are the features of accident only insurance?

There is a wide array of Accidental Insurance policies out there on the Australian insurance market, and each one has different coverage standards. Here are some of the coverage options generally available under accident only insurance policies.

  • Worldwide cover: Most accidental insurance policies will not only cover members within Australia, but also anywhere around the world.
  • Acceptance up to age 74: You will want to look for a policy that has a maximum coverage age. Much of the policies found in Australia cover people between the ages of 18 and 74.
  • Accidental injury benefits: Accidental injury benefits allow policyholders to receive a lump sum or ongoing payment to cover injuries such as broken bones, paralysis or burns. This feature is often optional, and can be had to cover injuries that cost up to a specified amount.
  • Multiple party coverage: Policies often let you take out coverage with your partner in order to receive a discount off of the monthly premium. This provides extra coverage for another party while also saving money over the long run.
  • Accidental death coverage: Accidental insurance policies can provide your loved ones with a lump sum payment if there is an accident covered under the policy that results in death. This is a coverage feature that many providers allow their customers to opt into.

In what situations will I not be covered?

Some common exclusions to accident only insurance policies include:

  • Accidents that resulted from the policyholder being under the influence of drugs, alcohol or illegal substances
  • Suicide
  • Intentional death
  • Sports injuries
  • Injuries resulting from drag racing
  • Injuries resulting from war
  • Hostilities or civil insurrection

What benefits should I look for when comparing a policy?

In order to provide potential customers with a competitive accident only insurance policy, many providers will offer a large portfolio of standard and tailored benefits and features. Here are some common features to look out for.

  • Bedcare benefit: A series of daily payments can be made for a predetermined period of time should you find yourself confined to bed and under the care of a registered nurse as a result of an accident.
  • Flexibility to adjust level of coverage: Policyholders can increase their level of coverage by applying with their insurance provider.
  • Payment frequency: Most policies will allow payments to be made on a weekly, fortnightly, monthly or annual basis.
  • Guaranteed renewability: If you pay your premium when due, many insurers will guarantee that the policy will be renewed until a specified birthday.
  • Fix your premium payments: Another great feature to look for when deciding on a policy is the ability to have fixed premium payments that will not increase as you get older.
  • Benefit indexation: Benefit indexation means that an accident only insurance policy will increase the level of coverage each year to ensure that premiums keep up with inflation. The level of indexation is based off of the consumer price index, and may vary by policy provider.

Both the coverage options as well at the benefits and features offered with a specific accident only insurance plan must be weighed when making a decision. Coverage and benefits will vary from policy to policy, so it is a good idea to read through the product disclosure statement to gain a better understanding of what each policy has to offer.

Who is eligible to take out a policy in Australia?

Here are the general requirements to take out an accident only insurance policy:

  • Applicant must be between the ages of 18 and 74
  • You must be an Australian or New Zealand citizen
  • If not a citizen, you need to hold an Australian Permanent Residency Visa
  • At the time of application you need to be living in Australia

Is there accident only insurance for children?

Accident only children’s insurance is a type of policy that provides benefits in the event of

  • Accidental death
  • Paralysis
  • Traumatic injury
  • Sudden-onset illnesses

These policies cover children between the ages of 2 and 17, and require the child covered to be a permanent Australian Resident.

What should I know before I apply accident only insurance?

Make sure you're aware of the following before you select a policy:

  • Accidental Death is covered: Payments are made as a lump sum in the case of accidental death of the insured child.
  • Serious injury or illness that are covered: Insurance benefits are usually paid in a lump sum should the insured child suffer from a traumatic injury or paralysis, or if the insured child becomes ill with diseases such as Encephalitis or Meningitis. Blindness, deafness, loss of limbs and major head trauma resulting from an accident are occurrences that are commonly covered under an accident only children’s insurance policy.
  • Limits of coverage: Only one benefit is payable per insured child, and the benefit can usually not exceed a predetermined amount. If the child is covered under more than one guardian’s policy, the most recently commenced policy will have a reduction in benefits and premium costs.
  • Premium calculation: Premiums are oftentimes calculated at each policy anniversary and are based upon the benefit amount provided for each insured child.

Looking to Apply for Accident Only Insurance?

If you are on the market for an accident only insurance policy, you can make a secure enquiry via the form located below. It is critical that anyone looking for Accident Only Insurance is well aware of the limitations of this type of cover prior to application. It is worth taking the time to make assessment of your cover requirements to determine if there are any other forms of protective cover that may be suitable. An insurance consultant can provide excellent assistance in this process.

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