Personal Accident Insurance

How does personal accident insurance work?

There are a few types of personal accident insurance. How and when you are paid varies between these types of cover:

How does each type of personal accident cover compare?

Workplace accidental injury and disease claims in Australia

_{Source: Key Work Health and Safety Statistics, Australia 2014}Learn more about workplace injuries and statistics in Australia

What type of accidents can I get cover for?

A sample policy could cover these types of injuries.

_{The table above is for illustrative purposes only and is not indicative of all policies available on the market.}

Is personal accident insurance right for me?

Consider taking out personal accident insurance if:

• You don't have the savings or the means to pay your living expenses / immediate debts without your income
• You are self employed or employed on a casual or contract basis
• You want to protect your finances

Reconsider your need for cover if:

What are the benefits of taking out personal accident cover?

Here are some of the perks you can get from taking out a personal accident policy:

• Tax deductible premiums. The premiums you pay on income protection accident cover can be claimed as a deduction leading to a bigger return at tax time.
• Flexible benefit payments. Depending on the type of cover you choose, you can choose to receive a successful claim as a lump sum payout to help with upfront medical expenses, or get your benefit monthly to assist to help with living expenses.
• Total and permanent disability benefit. Most policies will include a benefit payout for total and permanent disability, where you are not able to return to work at all because of an accident. For example, if you were to lose a vital sense like sight or the use of a hand or foot, you would be eligible for this benefit. This extends to accidents resulting in paraplegia or quadriplegia.
• Hospital reimbursement. Your policy can include cash benefits for each night spent in hospital.
• Extra payouts. Some policies offer double or triple benefits if your accident is sustained while you're travelling, or for disappearance or exposure.
• Associated accident costs. Accidents can entail a bunch of extra costs, so personal accident policies may provide a payout to assist with fees for counselling, rehabilitation, damage to clothing or personal property, and even the cost of specialist transport required to get you to hospital.

What additional features can my personal accident cover include?

Depending on the insurer, you may have access to additional features, such as:

• Automatic renewal. Once your policy is approved, your insurer guarantees the renewal of your policy at the end of each contract period, or up to some stated maximum – often two years. This can save you needing to constantly renew it yourself.
• Business expenses cover. This feature can mean your insurer will pay your weekly business expenses as they occur, or a set amount of business expenses stipulated in your policy agreement.
• Work and leisure cover. Some policies will only cover you for accidents which occur at work. This lets you stay covered no matter where you are.
• Transport insurance. This option extends cover to vehicle accidents, including injuries sustained behind the wheel, in the passenger seat, on public transport or even when you're struck by a vehicle while walking.
• Volunteer work. With this, you can get insured for accidents which occur during your volunteer hours.

When am I not covered?

Personal accident insurance does not generally cover:

• Injuries which have been self inflicted as the result of a suicide attempt
• Dental injuries
• Illnesses (on standalone personal accident insurance cover)

How do I make sure I'm covered when I make a claim?

To make sure you don't get a surprise denial when you need it most, we've detailed the most common reasons for rejection and what you can do to avoid them:

1. A specific injury or illness isn't covered. Most policies have a defined list of inclusions and exceptions. Know what is and isn't covered when signing up.
2. Non-disclosure. You need to be upfront about pre-existing medical conditions and injuries as well as what your occupations are when applying, or an insurer may reject your claim down the line.
3. Workplace compensation. If you're entitled to separate workers compensation from an incident, some policies won't pay out. Make sure you understand whether your workplace provides separate cover beforehand.

Who might consider personal accident insurance?

Personal accident insurance can benefit a wider range of Australians than you might expect. Some examples include:

Volunteers

Benefits are not restricted to paid work, and volunteer workers can get access to personal accident insurance in case they are unable to perform their duties. In this instance, the organisation they volunteer for is covered if they lose one of their volunteers for a period of time.

Self-employed workers

In addition, family day carers and other self-employed workers who don't usually have access to sick leave or other workplace injury compensation can receive benefits they would otherwise lack, such as:

Trades

Working a trade? Personal accident insurance for those in trade industries can provide financial protection should you fall ill, be injured or even pass away (for some policies). Depending on how risky your trade is, you may find it difficult to apply for income protection cover, so secure your income with accident insurance, instead.

Athletes, professional and extreme sports players

Losing a star player during championship season can spell the end. As a result, many professional athletes are insured against injury by their team or sports club. If you're not quite at that level just yet but you still rely on your body to earn your keep, consider personal accident insurance for sports players. There's a range of policies no matter your chosen field – a professional dancer, for example, might get cover for broken bones and soft tissue injury for up to 52 weeks.

Is there an age limit for personal accident insurance?

This depends on the type of personal accident insurance that you have:

^{Note: Exact age limits will vary between each insurer.}

What's the difference between personal accident insurance and income protection different?

• Personal accident insurance. Will usually only pay a lump sum of cash after an accident where you have suffered an injury.
• Income protection insurance. Will pay an on-going benefit while you are off from work after an accident. Income protection insurance generally also includes benefits for sickness. Therefore, personal accident insurance is generally classified as a policy which pays a cash sum, and income protection insurance generally pays monthly benefits.

Do I need life insurance and personal accident cover?

While some personal accident insurance policies may provide cover in the event of death, it's important to consider that there are some notable differences from life insurance. These include:

Which is right for me?

There is no one "right" policy, however as a general rule of thumb:

• Life insurance is for adequate protection to cover your family financially in the event of your death
• Accident insurance is to cover you in the event of an injury

Personal accident vs health insurance

Health insurance covers a range of costs associated with accident and illness. Health insurance will often cover hospital costs and may have added benefits of cutting down on hospital waiting lists, getting priority for private rooms and choice of specialists. Additionally, health insurance can cover ambulance fees and can be tailored to cover a wide range of illness and accidents.

What expenses does personal accident insurance cover?

On the other hand, personal accident insurance provides financial security for the loss of earnings you may incur following treatment due to being unable to work while you recover. The benefits include:

• Lump-sum payment or installments. If the personal accident cover is an income protection policy you'll be paid out in installments. Alternatively, you'll receive a single payout.
• Payment can be used for all treatments. You can use the cover for a range of treatments for injuries that may not be covered by your health insurance.
• Payment can be used to replace income. As you'll be out of work, you can sustain your income until you find your feet.
• Payment can also be used however you like. You can use the payment for additional medical expenses like rehab, or even non-medical uses such as taking a holiday.

Health insurance can become expensive if you tailor your plan to include more coverage options.