Did you renew your car insurance without fail every year? However, did you know that your car insurance does not cover your injury, disability, or death?
Car insurance only covers injuries & third party’s death
Car insurance only pays compensation in the following events:
- Theft or fire of your vehicle (all policies except for the third party policy)
- Damage to your vehicle or the third party’s vehicle (comprehensive policy)
- Third party injury or death (all policies)
Despite purchasing a comprehensive insurance policy, your car insurance will not cover you in case of death or permanent disability caused by an accident.
Therefore, here is a question to ponder.
Q: What is your other optional coverage to protect you in the event of disabilities?
A: You can purchase personal accident (PA) coverage to protect yourself in this situation.
What is personal accident insurance?
Personal Accident insurance or PA insurance is an annual policy that provides compensation in case of:
- Injuries
- Permanent disabilities, or
- Death caused solely by accidental events
How can you get this insurance?
The followings are examples of ways to purchase this insurance.
Purchase personal accident protection insurance products
Similar to medical and life insurance, you can purchase personal accident protection insurance products for yourself.
This insurance product allows you to receive compensation if you are injured, diagnosed with a permanent disability, or pass away in an accident.
Purchase additional personal accident coverage in comprehensive policy
You may opt to purchase this coverage when renewing your comprehensive policy. At most, the premium will vary across insurers.
Some insurers provide this coverage for free for their comprehensive policyholders. Examples are Liberty insurance dan Takaful Malaysia.
How much does additional personal accident coverage cost?
The premium will vary with each insurance provider. The premium amount is usually dependent on the amount of the coverage, between RM60 to RM100.
For example, MSIG offers the coverage for an additional RM60.
Does personal accident coverage also cover motorcyclists?
Yes, personal accident insurance includes protection for motorcyclists as well.
We recommend motorcyclists purchase this additional as they are more exposed to danger on the road. The premium for motorcyclists is lower. It is usually only around RM10 – RM20 for total protection worth RM5,000.
Should you purchase personal accident insurance if you already have a medical card?
What are the differences between these two coverages?
Do claims for personal accident insurance affect NCD?
NCD rates will not be affected if a personal accident insurance claim is made under your vehicle insurance unless due to these two factors:
- You file a claim from an accident which caused by you
- The insurance claim is made by the third party
Can you add personal accident insurance from another insurer instead of your existing insurer?
To your knowledge, you can only purchase this coverage through a comprehensive policy from the existing insurer.
Example: You have purchased comprehensive insurance from MSIG. Therefore, you can only get personal accident insurance from MSIG.
What if the amount of coverage is higher compared to another insurer? You have no choice but to accept the amount of coverage set by your insurance company. Thus, we recommend you do thorough research by comparing multiple insurance brands before purchasing.
How to claim?
You can file an insurance claim from your insurer during insurance renewal. You need to prepare and submit the following documents in order to claim:
- Copy of the police report
- Copy of PA insurance certificate
- Receipt or hospital/clinic bill
- Copy of death certificate (if compensation involves death)
- A copy of your account statement/ heirs
Should you purchase personal accident coverage?
Yes, we recommend you purchase it for extra safety!
Personal accident insurance is necessary to protect yourself in case of any emergency. It guarantees financial assistance should you face any difficulties following an accident.
If you are tight on a budget, you can add on the coverage under your existing comprehensive policy. Do some research first to survey for the best price in the market. Please note that some insurers offer this additional coverage for free!
Priotise your life
Your insurance premium may be slightly expensive after purchasing the additional personal accident coverage. However, the amount is no match if you have to bear the actual cost from your pocket!
Therefore, ensure to get sufficient coverage for your vehicle. You may start by comparing across insurers. Simply use Bjak, Malaysia’s number 1 leading platform to compare insurance brands. Get free quotes at Bjak and renew car insurance and road tax online in just 5 minutes.
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