An accident is a sudden, unforeseen external event that happens against a person’s will and causes harm to health or death. A fall on ice, an injury during training, a road accident, a burn in the kitchen — these are all typical examples. Accident insurance helps you cope with the financial consequences of such events.
Which risks a policy usually includes
- Accidental death — the beneficiaries receive the full sum insured.
- Disability — the payout depends on the disability group and is usually calculated as a percentage of the sum insured.
- Injuries — fractures, dislocations, burns and other injuries are paid according to a benefit table in which each type of injury has its own percentage.
- Temporary incapacity for work — a payment for each day of treatment, if this risk is included in the contract.
- Hospitalisation — a fixed amount for each day in hospital.
How the payout is calculated
The key concept here is the benefit table. It is an annex to the contract listing injuries and the percentage of the sum insured that corresponds to each of them. The more serious the injury, the higher the percentage. So read the table carefully before buying: it can differ noticeably from one insurer to another.
What is usually not covered
Every contract has exclusions. Most often they include:
- events that occur under the influence of alcohol or drugs;
- deliberate self-harm;
- involvement in unlawful acts;
- dangerous sports, unless they are specifically listed in the contract;
- illnesses — because an illness is not an accident.
Who benefits most from such a policy
Accident insurance is relatively inexpensive and suits almost everyone. It is especially useful for people who drive a lot, do sports or have physically demanding jobs, as well as for parents of active children. You can buy the policy on its own or add it to a savings or term life policy as an additional risk.
What to do if an accident happens
First of all, seek medical help: documents from the medical facility will be the basis for the payout. Then report the event to the insurer as soon as possible and ask for the list of required documents. Keep discharge summaries, certificates and receipts. The more complete the set of documents, the faster the insurer can decide on the payout.
Tips for choosing
- Check whether the policy applies around the clock and anywhere in the world or only during working hours.
- Make sure your hobbies and sports are covered.
- Compare benefit tables, not just prices.
- Find out how soon you must report an event and which documents will be required.
A Dynasty consultant will help you compare accident insurance terms from several insurers, and you can calculate an indicative price in our calculator.