There are a variety of Personal accident insurance policies available in Singapore. However the terms of these policies vary a lot as compared to other insurance policies. In contrast to a basic life insurance, a personal accident policy does not cover death due to natural causes. Generally, personal accident policies do not cover people who could be argued to be ignorant and those who willfully expose themselves to danger. However, the amount of coverage is generally higher than other general policies as its area of coverage is stricter.
Important considerations while picking a personal accident policy
If you have specific need then careful comparison would be required of available polices to give you value for your money. This would require you to examine several factors and compare different plans. Here’s a list of things that could be important for you in making your choices:
- Coverage. Is the policy coverage adequate for yours and your family’s needs? You should to understand the scope of the coverage and what types of coverage the plan includes. For instance, you may wish for a policy that gives you hospitalisation benefits and covers medical expenses. You may also consider the compensation for loss of pay due to accident or compensation for temporary or permanent disability due to accidents.
- Exclusions. Exclusion clauses on personal accident covers are need to be read and understood carefully. Failure to understand these policies brings up unwanted disputes and can also lead to rejection of claims. Different insurance companies have different sets of exclusions. Generally, the policy exclusions includes a list of several circumstances that your policy does not cover. For instance, most personal accident insurance excludes coverage for diseases, self-inflicted injuries, and other illegal activities. Some plans have much reduced coverage if the accident is caused by a “risky” activity. You should understand the restrictions of each plan, so that its easier for you to make your decision based on what is more important.
- Benefits. In order to find the right personal accident plan, you need to know the total sum of compensation the insurance company would pay you. Note that each type of accident or injury may have different compensation amount attached to it. Benefit plans also vary by insurance companies. Some companies offer 100% of the sum insured on certain injuries, while 50% to 25% on “risky” activities. Sum insured means the maximum amount an insurance company will pay in compensation in the event of an accident.
- Beneficiaries. In the event of your demise, your next of kin nominated as beneficiary will receive the compensation from your insurance cover. It is important to nominate someone and to make sure that they are aware of this. Without a nomination, it would take a longer process for the company to compensate. This happens because there will be a need to obtain the grant of probate or letters of administration from the court to manage the policy money.
These are some of the important factors that you should consider prior to taking out a personal accident insurance cover. To learn more about types of insurance, check out some of our insurance articles.
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