Personal Accident (PA) Insurance is an annual policy which provides lump-sum compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events.
Unlike life insurance (which covers any type of death), PA Insurance is completely policy dependent. It pays a benefit due to death which helps protect loved ones against the inevitable devastating loss of income that will occur if a member dies unexpectedly.
Premiums of PA insurance policies are also generally cheaper than Life Insurance, due to a more restrictive policy. Purchasing PA Insurance is a good way to protect your family and dependents, however, because it does not cover death by natural causes, if such things concern you it might be a good idea to augment it with a Life Insurance policy.
PA Insurance can either be taken for yourself or a group policy for your family. 24-hour worldwide coverage is also provided.
Where can I get a PA Insurance policy?
In Malaysia, PA Insurance products can be purchased directly from insurance companies.
How much does it cost?
The cost of a PA Insurance policy depends on several factors such as the length of coverage, compensation, additional coverage on exclusion, age (premium can rise with age), occupation (Class 3 jobs have a higher risk than Class 1 and 2), what activities you normally do, health history and number of people who benefit.
Who can apply for PA Insurance?
Most people are eligible to apply for PA Insurance. However, some details such may differ depending on the policy.
People who aren’t eligible to be covered under PA Insurance are those with high career risk i.e: the police, military and law enforcement officers, divers, pilots or crew members, aircraft testers, racing drivers, fishermen. People who fall under this category usually have their employer take a special form of PA insurance for them. The payment of compensation to the employees is at the discretion of the employer.
Insurance companies typically categorise occupations or professions into 3 main classes:
Class 1: Professions and occupations involving indoor work and of a non-hazardous nature like accountants, administrators, architects, doctors, indoor sales staff, clerks and the like.
Class 2: Professions and occupations involving indoor work with occasional manual work or involving some outdoor work like bakers, hairdressers, waiters, outdoor sales staff, electronic engineers, civil engineers and the like.
Class 3: Professions and occupations involving light manual work or the use of tools or light machinery (other than wood working machinery), like butchers (no slaughtering), fishmongers, motor mechanics, kitchen workers, hawkers and the like.
The premium payment will be priced according to the classes of occupation. Class 3 has the highest occupation accident risk, followed by Class 2 and Class 1. As such, the higher benefit coverage personal accident plans (which normally covers RM500,000 for accidental death or permanent disablement) will not cover Class 3.
Source: FreeMalaysiaToday.com
No comments:
Post a Comment