Personal Accident Insurance: What’s Covered and What’s Not

Today, we’re going to look at the popular topic of personal accident insurance. Let’s start with a helpful definition…

Personal accident insurance is a policy that provides a financial benefit in the unfortunate event of an injury, disability or death due to an accident. The accident must be an external, clearly visible event of a violent nature that is not intentional.

Personal accident insurance can be purchased for an individual, a family, or a group, such as when bought by a company for their employees.

What is covered:

Typically, personal accident insurance offered in Malaysia provides 24-hour coverage anywhere in the world. However, the amount of coverage and the terms and conditions can differ between insurance companies, so it’s important to compare them before choosing the best one for your needs.

Here are some common things covered under a personal accident insurance plan:

  • Death caused by accident
  • Total permanent disability caused by accident
  • Total or partial temporary disability caused by accident
  • Medical expenses caused by accident
  • Surgery expenses caused by accident
  • Hospital expenses caused by accident
  • Funeral expenses

Double benefits:

It’s possible to have more than one personal accident insurance plan and you can make multiple claims based on the coverage amount of each plan. However, for certain claims like medical expenses, where the claim is paid based on repayment, you can only make one claim using the receipt amount.

Who and what is not covered:

People who work in the following occupations, which are considered more risky, are not eligible for personal accident insurance:

  • Army personnel, police, fireman or any operations related to military or armed occupations
  • Diver
  • Pilot and cabin crew
  • Aircraft examiner
  • Professional sports
  • Sailor and fisherman
  • Any occupation that involves drilling, timber, underground work, manufacturing or handling of explosives emitting gas

In addition, personal accident insurance plans do not offer coverage under certain conditions called “general exclusions”. These include:

  • Risk of war
  • Suicide, attempted suicide and insanity
  • Injury caused intentionally
  • Under the influence of alcohol, drugs or narcotics
  • AIDS/HIV or venereal diseases
  • Murder or planned violence
  • Child birth, pregnancy or miscarriage or any related complications
  • Involvement in criminal activities that are against the law
  • Dangerous sports
  • Natural caused disease

Once again, each personal accident insurance plan can have different exclusions, so check the terms and conditions thoroughly.

When you’re finally ready to apply for personal accident insurance, remember to do the following:

  • Read and understand the “Important notice” on the form
  • Answer all the questions accurately
  • Sign your completed form

At EZTakaful, there are no health questions or health exams necessary for our personal accident insurance plans. They’re very simple! Moreover, our plans are 100% Syariah compliant and provide comprehensive coverage from as low as RM 10 a month.

Click here for more info on EZTakaful plans

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