Attention! This is what you need to understand. Car insurance coverage does not cover your injury, permanent disability, or death as a result of the tragedy of a road accident. Read this article to learn how car insurance coverage differs from personal accident coverage.
Car insurance only covers third party bodily injury and death
The car insurance only compensates in the event of:
- Accidental car fire or theft (except for third-party policy)
- Car damage to your car or the third party (comprehensive policy)
- Third-party bodily injury or death (all policy types)
Despite purchasing a comprehensive insurance policy, it does not cover permanent disability or death as a result of a road accident.
Therefore, what is your initiative to enable you (as the first party) to get covered in the event of bodily injury in a road accident?
The answer is by getting personal accident coverage.
What is Personal Accident Insurance?
The purpose of this insurance is to give monetary compensation to you in the event of:
- Injury
- Permanent disability
- Death resulting from accidents
How can you get personal accident insurance?
There are two ways to purchase it:
Purchase personal accident protection products
Similar to life and medical insurance, you can purchase personal accident insurance.
The policy compensates you in the event of permanent disability or death resulting from accidents.
Purchase additional coverage for a personal accident in comprehensive policy
Car owners have an option to purchase additional coverage for a personal accident when renewing insurance in comprehensive plan. The premium for this additional coverage usually will vary across insurers.
There are insurance companies that provide the coverage for free in the comprehensive policy. Examples are Liberty and Takaful Malaysia.
How much is the additional coverage for the personal accident?
As mentioned above, the premium for additional coverage will vary among insurance providers. Generally, the premium for this add-ons cover is up to RM100. However, it depends on the amount of coverage.
For example, MSIG gives an option to the policyholder to get coverage for a driver with an additional premium of RM60 only.
You may refer to your preferred insurer or agent to learn more about the premium for confirmation.
Can motorcyclists purchase personal accident coverage too?
Yes, personal accident coverage is also offered to motorcycle owners.
To your knowledge, motorcyclists are highly recommended to purchase this additional coverage. They are more at risk of being involved in road accidents.
The premium for motorcycle owners is lower too. It usually only costs RM20 for a total cover of RM5,000.
Do you need personal accident cover if you already have a medical card?
Let’s refer to the below visual to see the differences:
Does a personal accident insurance claim affect your NCD rate?
No. Your NCD entitlement will not be affected by the following factors:
- You make a claim as a result of an accident that befell you
- Personal accident claims are from third parties
Can you add additional coverage for personal accident with other insurers?
To your knowledge, you can’t purchase the additional coverages from other insurers. You can only add additional coverages in the comprehensive with your current insurers.
Although other insurers offer higher coverage in amount, you have no option but to get it from your insurer. Therefore, please compare across insurance companies to evaluate the benefits.
Example: Your company’s name is A. If you purchase comprehensive insurance from company A, the add-on covers must be from company A too.
Ways to claim personal accident coverage
You can claim through the company’s branch where you renew your insurance.
In addition, you will need to provide the necessary documents required by the insurer.
- Copy of police report
- Copy of personal accident insurance certificate
- Receipt or hospital’s bills
- Copy of death certificate (if the compensation involves death)
- Copy of your statement account/heir
Do you need to get personal accident insurance?
We absolutely recommend you to get it!
Accordingly, personal accident coverage is necessary in the event of an accident. It protects you from financial burdens if something happens to you in the accident.
If you have a limited budget to get personal accident products, you can save by adding them to your policy plan.
Several insurance providers offer additional personal accident coverage for free to the comprehensive policyholder. Therefore, you may choose the best one for yourself and the vehicle.
Value your life by adequate coverage
Your insurance premium will soar after you purchase the additional personal accident coverage. However, it is better rather than having to cover the deadly cost yourself in the future.
In brief, make sure your vehicle gets protected adequately to avoid financial strains in the future. Compare across insurers first to get the best coverage.
You can do it conveniently using Bjak!
Bjak is one of Malaysia’s biggest insurance comparison sites, offering 15 insurance brands. Get free car insurance quotes at Bjak and renew your insurance and road tax in just 5 minutes.
