Personal Accident Insurance In Australia

Information verified correct on September 26th, 2016

Understanding Personal Accident Insurance

Personal accident insurance is a type of insurance that individuals in Australia can opt for. With this type of insurance in place, you can rest assured that you will be covered in case you end up with a serious injury resulting from an accident. While different insurance providers may have differing definitions as to what they consider a serious injury, some examples of the same are injuries that may result in blindness, deafness, paralysis, as well as those that are serious enough to leave you unable to work.

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Details Features
Income Protection
Income Protection
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed.
  • Monthly benefit up to $10,000
  • Cover for applicants up to age 60
  • 30 day cooling-off period
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Income Protection
Income Protection
Receive up to 75% of your income each month to a maximum of $25,000 if you can't work due to serious illness or injury.
  • Monthly benefit up to $25,000
  • Available for applicants up to 59 years old
  • 21 day cooling off period
Go to site More info
Being involved in a serious accident often comes with serious consequences. Firstly, you may have to bear severe pain and may need to undergo various surgeries to rehabilitate yourself completely after the accident. Secondly, and sometimes more devastatingly, you may have to face unimagined financial hardships in case your medical costs are too high and you do not have the money to cover the expenses fully. And if your injuries are so serious that you will be out of commission for an extended period of time, then you may even be looking at a considerable loss of income during the time you are unable to work. Fortunately, you do have the option of purchasing personal accident insurance to protect you from such situations.

What Does Personal Accident Insurance in Australia Cover?

In Australia, personal accident insurance policies typically provide the following types of cover:

  • Medical and rehabilitation expenses: Personal accident insurance policies typically pay out a lump sum in case of serious accidents. This lump sum payment can be used to pay your medical bills, including doctor charges. In addition to that, if you have any recurring medical expenses in the form of rehabilitation or physical therapy costs, then these too can be covered by the insurance
  • Loss of income: If you are involved in such a serious accident that you cannot work for some time, then the loss of income can be covered through personal accident insurance. Most insurers will cover you for as much as 75% of your regular income, so that you do not have to suffer financially in case of an accident. While you can opt for a lesser cover, 75% of your income is usually the highest that you can get. Also, depending on the insurance policy and its terms, you may also have the option of choosing the number of years for which this benefit will be paid out. The premium for the insurance cover will depend on the level of cover that you choose as well as the period of payment of the associated benefits
  • Accidental death: Personal accident insurance also covers you for accidental death. If you are involved in an accident that results in your death, then your beneficiaries or your estate will be paid the death benefits specified in your policy.

In order to file a valid claim through personal accident insurance, it is necessary that the injuries you are claiming must be sustained as a direct result of an accident. Your insurance benefits will not kick in if you contract a serious illness that is not resultant of an accident, regardless of whether you are able to continue working or not. Also, if the injuries sustained are self inflicted, then too they will not be covered under personal accident insurance. This includes attempted suicides as well as any other types of self inflicted injuries.

Comparing personal accident insurance plans

Finding the right personal accident insurance plan entails looking at a number of different factors and considerations, which is why you need to make sure you take the time to compare a variety of different plans and providers. This is something that you will be able to do quickly and easily online, so the Internet is a great tool to help you find the right personal accident insurance plan for your needs and budget. Some of the benefits of going online to find the right personal accident insurance plan include:

  • You get to benefit from total ease and convenience, as you can browse providers and plans from the comfort and privacy of your own home
  • You can compare personal accident insurance plans at a time that suits you rather than during insurance company opening hours
  • You will find you have access to a wide range of deals and providers, so you can increase your chances of finding the right plan at an affordable price
  • You will find some special deals on cover online, including internet only exclusive deals, which can help to increase affordability
  • You can compare plans and providers at a glance when you go online, saving you a lot of time and inconvenience

What to look for when searching for the best personal accident insurance for you

In order to find the right personal accident insurance cover for your needs, it is important that you look at a cross section of factors when you are comparing plans, as this will help to ensure you not only get cover at the right price but that you also get cover that is well suited to your requirements. Some of the factors that you should look at when you compare plans include:

  • How much you will pay for your cover: You need to check the cost of different personal accident insurance plans so that you can determine whether the plan falls within your budget
  • How much coverage you get: You should always check the level of coverage you get with different plans to ensure that you will be adequately covered in terms of finances if you fall victim to an accident
  • What is covered under the plan: You need to check what you are covered for under any plan you are considering so that you know what you are getting for your money in terms of protection
  • Any exclusions: You should familiarise yourself with any exclusions or restrictions so you know what is not covered under the plan

An important thing to remember is that personal accident insurance is not the same as life insurance or even accidental death insurance. Life insurance will usually pay out money to your beneficiaries in case of death, whereas accidental death insurance pays out money only if an accident results in a death. Therefore, if you want to be covered for serious injuries that are caused due to an accident and you wish to receive the benefits that can help you to get back on your feet, you should opt for personal accident insurance.

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