What Is Accidental Insurance Coverage – Personal accident insurance (PA) is a type of insurance that provides worldwide coverage and compensation in the event of an accident that results in disability or death. The severity of a disability can range from a temporary partial disability, such as a broken bone, to a severe disability such as blindness. A typical policy term is one year and you can usually extend this policy until you are 70 or 75 years old. In general, accident insurance can be a good option for those whose families are financially dependent on them. Below you can find out more about accident insurance – especially how much you should expect to pay and what compensation you should expect to receive.
The average cost of personal accident insurance for a regular office worker is S$381 per year. However, premiums vary depending on your job and how much coverage you need. For example, workers (eg lawyers, financial professionals) looking for an entry-level PA plan can expect to pay up to S$117 per year. On the other hand, a builder looking for as much protection as possible can expect an average of S$1,165.
What Is Accidental Insurance Coverage
Most accident insurance policies vary their premiums depending on your occupation. When you go to buy a policy, you will see occupations divided into 4 classes: Class 1, Class 2, Class 3 and Class 4.
Personal Accident Insurance
Class 1 occupations are skilled workers such as financial experts, bankers, accountants or lawyers. They pay the least in terms of monthly premiums because they usually have a lower risk of having a serious accident. Occupations belonging to category 2 are semi-skilled workers or those who work partially outside. They include salespeople, hairdressers, photographers and engineers. We found that PA premiums for Class 2 workers are, on average, 12% more expensive than for Class 1 workers. All PA plans that require you to disclose your occupation offer Class 1 and Class 2 coverage.
Class 3 and Class 4 occupations are considered high risk by most insurers and will result in the highest premiums. First, category 3 is workers exposed to hazardous conditions such as machinery. Bartenders, factory workers, paramedics and veterinarians can be considered workers in category 3. We found that Class 3 employment insurance costs 56% more than Class 2, or about S$200. Class 4 is the most expensive to insure, costing on average 52% more than Class 3 and about 154% more than Class 1. Class 4 occupations are considered unskilled or high-risk or work that involves a lot of engineering, including construction work, police work. or pilots. Few insurers will insure you if you work in a Category 4 job due to the relatively high risk of accidents in these jobs.
As is common with most insurance policies, PA insurance charges different rates depending on how much you want. For example, most plans have a basic plan, a mid-level plan, and a top-level plan. The basic policy, which provides S$50,000 to S$100,000 for accidental death and disability, will cost between S$138 and S$346, depending on the type of occupation. Alternatively, the average top plan will cost between S$650 and S$1,808. For each incremental plan level, we can expect premiums to increase approximately 100%-137%.
There are also non-work personal accident plans. These plans offer the same premium regardless of occupation and usually require you to see a financial advisor to purchase. The average cost of these plans is S$ 318. Most of these plans target specific demographics, such as middle-aged people or cyclists. These policies usually offer different amounts of coverage, with the basic plan costing about S$188 per year and the top plan costing S$465 per year.
What A Personal Accident Insurance Covers And Why Everyone Should Have One (especially When It Is Only S$98 A Year!) — The Shutterwhale
Personal accident insurance provides protection for accidental death, total and permanent disability, partial or temporary disability and medical expenses. The average sum insured for accidental death and disability is S$314,286. Looking at the individual levels, we found that the average basic PA plan will offer between S$50,000 and S$100,000 in accidental death and disability cover. Mid-tier plans offer an average of S$231,579, while top tier plans offer S$610,000. There are also some plans that offer an additional payment for total and permanent disability, with the highest amount being 300% of the sum assured.
Other various benefits that personal accident plans offer include weekly income assistance, daily inpatient cash assistance, home modification and mobility assistance. Weekly allowance provides payment for each week you are out of work due to disability. Daily hospital payments are similar to weekly income support, except that you are paid for the day you are in hospital and you do not have to work. Home modifications and mobility assistance will pay for modifications to your home or your body, such as wheelchairs, braces or handrails. You can also find funeral, care and personal liability benefits. However, we found that about half of the insurers on the market will make you pay for most of these different benefits separately. Finally, most personal accident plans also offer coverage for communicable diseases and food poisoning.
To find out the average cost of accident insurance in Singapore, we collected data from 16 different insurers and over 100 plans. We have divided the premiums according to occupation and insurance level. For example, we compared the top PA plans that insurers could offer, their mid-range plans, and their top-tier plans. From this we were able to calculate the average benefit you can expect and how much you should expect to pay for this level of cover. One thing that is important to keep in mind is that what is considered risky work actually varies from insurer to insurer. For example, we found that nursing is a Class 3 or Class 2 occupation, depending on the insurer. As this can result in a price difference of S$200, you should compare the different plans to find the one that will put your profession in the lowest tier.
Anastasia is a senior research analyst in Singapore, evaluating consumer insurance products based on quantitative and qualitative financial analysis. She has degrees in economics and international business management, and her previous work experience includes working in the capital market. Her analysis of insurance, healthcare, international affairs and personal finance has been featured on AsiaOne, Business Insider, DW, Vice, Her World, Asia Insurance Review, Australian Institute of International Affairs and others.
Human Resource Services / Accident Insurance
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We often hear about hospital insurance, life insurance and critical illness insurance. While all of these types of protection are important, there is an important addition to them: an accident plan that covers situations that the other three do not.
For example: Say you had a serious accident and fell down the stairs. What does each of your insurance plans cover?
Why You Should Get A Personal Accident Insurance
One expense that is often overlooked in car accidents is the cost of dental treatment – teeth can be lost or damaged as a result of a collision. Typical costs (as shown on Seedly) are as follows:
So even losing two or three teeth can easily exceed the $1,000 mark. A personal accident plan like SmartPA Protect+ can cover up to $10,000 in medical expenses.
Another common injury in traffic accidents is whiplash. This often requires physical therapy, which may not be covered by inpatient plans. An accident plan can cover up to $5,000 of physical therapy costs per person