Coverage Type
Event-Based
Premium
Low Cost
Payout
Lump Sum
Understanding the practical, everyday protection layers that complement your hospital and income planning. Personal accident insurance provides financial compensation for accidental injuries, while general insurance protects your assets and covers specific events.
01 / The Basics
Event-based protection that activates when the unexpected happens.
Personal accident insurance provides financial compensation when you experience an accidental injury. Unlike health insurance which covers illness, accident plans are triggered by specific events - sudden, external, and unforeseen incidents.
This type of coverage is designed to complement (not replace) your medical insurance, providing additional financial support during recovery from accidents.
Key distinction: Accident plans pay based on what happened to you, not based on medical bills incurred. This makes them simpler and faster to claim.
02 / Coverage Details
Comprehensive protection against accident-related financial impact.
Lump sum payout to beneficiaries if death occurs from accident
Full payout for severe, permanent disabilities from accidents
Proportional payout for loss of limbs, fingers, vision, hearing
Fixed payouts based on severity of bone fractures and burns
Reimbursement for outpatient treatment from accidents
Cash payout for each week unable to work due to accident
03 / Understanding the Difference
Different plans protect against different types of events.
Event-Based
Trigger
Accidental injury only
Payout
Fixed lump sum
Claims
Simple, fast
Premium
Very affordable
Best for: Extra layer of accident protection
Expense-Based
Trigger
Any hospitalisation
Payout
Reimburses actual bills
Claims
Bill-based
Premium
Moderate
Best for: Medical bills coverage
Diagnosis-Based
Trigger
Specific illness diagnosis
Payout
Lump sum
Claims
Upon diagnosis
Premium
Higher
Best for: Serious illness financial buffer
Example: You slip and fracture your leg, requiring surgery and 3 weeks off work.
Personal Accident
Pays fixed fracture benefit + weekly income
Hospital Plan
Covers surgery & hospital bills
Critical Illness
Does not apply (not CI condition)
04 / Is It For You?
Accidents don't discriminate by job type or lifestyle.
Extra protection layer beyond employer coverage. Income support during recovery.
No employer coverage. Income stops when you stop. Critical safety net.
Active supervision increases accident exposure. Cover the whole family.
Higher fall risk. Often includes fracture benefits relevant to elderly.
Active lifestyle, sports activities. Affordable coverage for young adults.
Sports, cycling, hiking. Higher exposure to accidental injuries.
Reality check: Most accidents happen in everyday situations - at home, commuting, or during routine activities. It's not just for "risky" professions.
05 / The Big Picture
Protection against financial loss from specific events - beyond life and health.
General insurance (also called non-life insurance) protects you from financial losses related to your assets, liabilities, and specific events. Unlike life insurance which pays upon death, general insurance compensates for damage, loss, or liability.
These policies are typically annual contracts that you renew each year, with premiums based on the risk profile of what you're insuring.
Mandatory in Singapore
Optional but Recommended
06 / The Big Picture
Different layers of protection for different types of risk.
General Insurance (Property, Liability, Travel)
Protects assets and covers specific situational risks
Life Insurance
Provides for dependents if you pass away
Income Protection (Disability Income)
Replaces income if you cannot work
Accident Plan + Critical Illness
Lump sum support for accidents and serious diagnosis
Hospital & Medical Insurance
Foundation layer - covers treatment costs
Each layer addresses different risks. Accident plans sit between medical and income protection.
Consider these factors (no fixed formula):
Income Level
Higher income = larger potential loss
Dependents
Family relying on you?
Lifestyle
Activity level and exposure
Existing Coverage
What gaps remain?
07 / Clearing Up Confusion
What many people believe vs what actually happens.
Common belief
"I work in an office. I don't need accident coverage."
Reality
Most accidents happen during commuting, at home, or during daily activities - not at work. Office workers are not immune.
Common belief
"My hospital insurance already covers accidents."
Reality
Hospital plans cover medical bills only. Accident plans provide additional lump sum payouts, income replacement, and benefits hospital plans don't offer.
Common belief
"Accident insurance is only for people in risky jobs."
Reality
Falls at home, traffic accidents, sports injuries - these affect everyone regardless of occupation. Risk is everywhere.
Common belief
"I have so many insurance policies already. I don't need more."
Reality
Different policies cover different risks. Having multiple doesn't mean you're over-insured - it means you have comprehensive coverage. Review for gaps and overlaps.
Understanding how accident and general insurance fit your life helps ensure you're neither over-insured nor leaving critical gaps in your protection.
Coverage needs depend on individual lifestyle and risk exposure.
Event-based protection for injuries
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