Remember, if you have any questions about how the process works, don't be afraid to ask. Your insurance company will explain everything to you, so you know exactly what to expect.
Personal Accident Insurance
Worried about taking time off if you get injured? Personal accident insurance could help.
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Accidents happen, and they can lead to significant recovery time. Personal accident insurance covers you if you're unable to work after an accident, meaning you're supported financially while recovering at home.
With personal accident insurance, you can claim a monthly benefit or a lump-sum payment, so you can focus on getting better, rather than worrying about paying the bills.
What is personal accident insurance?
Personal accident insurance, sometimes called personal injury insurance, is an insurance policy that promises to pay a financial benefit if you're injured in an accident.
It's designed to alleviate the financial stress that can accompany a serious accident, especially if you're out of work and facing expensive medical bills, so you can concentrate on recovery.
Compare insurance for a personal accident or injury
What's in this guide
What does personal accident insurance cover?
Standalone personal accident insurance typically covers a specific list of injuries, including the following:
- Fractures
- Dislocations
- Loss of limbs
- Burns
- Some illness
- Loss of sight
If you buy personal accident insurance as part of a wider income protection package, you may also be covered for illnesses that put you out of work, such as the following:
- Cancer
- Paralysis
- Stroke
- Demensia
- Heart attack
Remember, specific benefits will vary between insurers, so be sure to read the product disclosure statement (PDS) carefully before buying personal accident insurance.
How does personal accident insurance work?
You pay a monthly fee and, in exchange, your insurance company promises to pay a financial benefit if you ever suffer a serious injury.
If you buy standalone personal accident insurance, you'll likely get the financial benefit as a lump-sum payment upon injury. For example, you may receive $3,000 if you break your arm.
However, if you buy personal accident insurance as part of a wider income protection policy, you'll receive a monthly payment that is designed to replace a portion of your typical income while you're unable to work.
When you buy your policy, you also set a waiting period and a benefit period.
- Waiting period. This is how long you have to wait after your injury before you can begin claiming. For example, you might set a waiting period as short as two weeks or as long as three months.
- Benefit period. This is the length of time you can claim the benefit for. Usually, the maximum length you can claim monthly benefits is either two years or five years, depending on the insurer.
Types of personal accident insurance
There are several types of personal accident insurance. You can buy cover as a standalone product or as part of a larger income protection package. If you buy personal injury insurance as part of a wider policy, you may also receive a financial benefit for illness rather than just for injury.
The table below shows the four types of personal accident insurance, what's typically covered under each policy and the type of payment you'd receive if you ever had to claim.
| Type of cover | What's covered? | Payout type |
|---|---|---|
| Standalone personal accident insurance | Specific injuries due to accidents – e.g. fractures, burns and dislocations. | Lump sum |
| TPD cover | Injuries and illnesses that leave you totally and permanently disabled. | Lump sum |
| Accident-only income protection | Injuries that put you out of work temporarily. | Monthly income replacement |
| Income protection | Injuries and illnesses that put you out of work temporarily. | Monthly income replacement |
Do I need personal accident insurance?
What would happen if you were suddenly injured? Maybe you fell off your bike and broke your leg or were hit by a car while crossing the road.
Would you be out of work for a while and have to face medical expenses? Would your family fall behind on the bills or have to go into debt to cover healthcare costs? Would you need to hire someone to help around the house or pick your kids up from school?
If you answered yes to any of these questions, it might be worth considering personal accident insurance.
What isn't covered by personal accident insurance?
In certain circumstances, you may suffer an injury but will be unable to claim on your personal accident insurance. These circumstances include the following:
- If the injury was the result of drug or alcohol abuse
- If it happened while you were committing a crime or in jail
- If you injured yourself intentionally
Is personal accident insurance the same as income protection?
No. Personal accident insurance pays you a lump sum if you're ever seriously injured. You might break your arm and be able to return to work the next day, but you'd still get your benefit.
Income protection insurance pays you a monthly benefit if you're ever too sick or injured to work. For example, if you were diagnosed with cancer and had to take three months off, you'd be able to claim a portion of your typical income as your benefit.
How does age affect personal accident insurance?
- All personal accident insurance policies have minimum and maximum age requirements.
- Some insurers will reduce the value of your benefit as you get older.
- Your premiums will likely get more expensive as you grow older.
How does pricing work with personal accident insurance?
If you buy standalone personal accident insurance, you'll typically pay a set price depending on your age. For example, you may pay $20 per month up until the age of 65. After that, your premiums may increase at a steady rate for every subsequent year.
However, if you buy an income protection policy that includes cover for illness as well as injury, your premiums will be calculated taking a range of different factors into consideration, including the following:
- Your age
- Your overall health
- Waiting periods
- Your income
- Benefit amount
How do claims work for personal accident insurance?
If you need to make a claim on your personal accident insurance, you should contact your insurer as soon as possible as each company has a slightly different claims process.
Typically, you'll be asked to supply some documents before your claim can be approved. These may include the following:
- A doctor’s note or medical statement
- An x-ray or CT confirming your injury
- Proof of ID, such as a birth certificate or driver's licence
Once you have given your insurance company the documents it needs, your claim will usually be processed and approved within a few days.
Is personal accident insurance tax deductible?
Depending on which personal accident insurance policy you buy, you may be able to claim your benefits as a tax deduction.
Personal accident insurance is tax-deductible if
- Cover is in the form of income protection insurance
Personal accident insurance is not tax-deductible if
- The policy is through superannuation
- The policy benefit is paid as a lump sum
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Ask an Expert
Hi, I’m looking at getting some work experience at a local mechanic workshop. As I am only 15 years old, can I get insurance for personal accident and liability insurance? I have been told that I am not covered under their insurance.
Thanks.
Hi Bobby,
Thank you for contacting Finder.
I’m afraid you may not be eligible for getting a personal accident insurance. As per the above article in section Is there an age limit for personal accident insurance, it shows that there are age of entry limitations from 16-18 years old depending on the type of personal accident insurance.
For liability insurance, you can try getting a quote here.
Hope this helps! 😊
Let us know if you need further assistance and we’ll be happy to help.
Kind Regards,
Mai
I am looking for insurance cover, accident only and no income protection. For a social walking group in case someone gets hurt in our activity time. Not looking for big premiums and looking for cover for about 50 people.
Hi Wendy,
Thank you for getting in touch with Finder.
On this page you’re looking at, kindly enter all details asked and a broker will get in touch to help you find the accident only insurance that suits your needs.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
His is 7 days excess fee applicable to all injuries that are suffered by contractors irrespective of cause, and the sports injuries clause 28 days excess fee? is this under PA policy nation wide?
Hi Viola,
Thank you for reaching out to finder.
The Insurance Council of Australia regulates and provides guidelines to insurance companies on acceptable policy coverage for it’s users. You may want to reach out to them if you feel that there is more to what your provider is covering for you. As well, it would also be advisable to revisit your contract with your insurance provider to check on this clause coverage as well as what policies it provides. Hope this helps!
Cheers,
Reggie
I need an accident insurance policy for $500,000. I am 74 nb.
Hi Peter,
Thanks for your comment.
You are already on the right page. To get a quote for accident insurance, kindly fill out the quote engine above and click the “Get quotes” button. Different quotes from different insurance brands will show for you to compare.
Please make sure though to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details
Regards,
Jhezelyn
I’m looking for personal accident insurance that covers me 24/7. I am a Tree Faller. So high risk.
Hi Kent,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You may refer to this page for options that may suit your needs. Simply provide the necessary information and a customized list of options will be available for you. You may then review and compare the offers available on the table.
I hope this helps.
Cheers,
Danielle
Hi i HAVE FRACTURED A BONE IN MY ANKLE AND WILL BE LAID UP FOR 6 WEEKS, I HAVE A PERSONAL ACCIDENT POLICY WITH YOU. I AM 70 YEARS OLD AND RETIRED. I WOULD LIKE TO KNOW WHAT I AM ENTITLED TO WITH MY POLICY.
Hi Paul,
Thank you for your question.
Please note that you have contacted finder.com.au, a comparison and information service and not actually an insurer.
You will need to contact the insurer you have your policy with directly about claiming.
All the best,
Zubair
do you cover heavy vehicle mechanics in a quarry
Hi Maz,
Thanks for getting in touch. finder.com.au is a comparison service and not an insurer. To speak with an adviser about your cover options, please complete the contact form above.
Cheers,
Richard