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Personal Accident & General Insurance

Protection Beyond Hospital

Personal Accident & General Insurance

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

What accident insurance really covers

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.

What defines an "accident"?

External - caused by something outside your body
Sudden - happens quickly, not gradually
Violent - involves force or impact
Unforeseen - not anticipated or planned

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

What accident plans typically cover

Comprehensive protection against accident-related financial impact.

Accidental Death

Lump sum payout to beneficiaries if death occurs from accident

Total Permanent Disability

Full payout for severe, permanent disabilities from accidents

Partial Disability

Proportional payout for loss of limbs, fingers, vision, hearing

Fractures & Burns

Fixed payouts based on severity of bone fractures and burns

Medical Expenses

Reimbursement for outpatient treatment from accidents

Weekly Income Benefit

Cash payout for each week unable to work due to accident

Additional benefits often included

Daily hospital cash Mobility aids & wheelchairs Home modifications TCM treatment Rehabilitation expenses Infectious diseases (dengue, HFMD) Food poisoning Funeral expenses

What accident plans do NOT cover

Illness or disease (heart attack, stroke, cancer)
Pre-existing medical conditions
Self-inflicted injuries
High-risk activities (unless specifically covered)
Injuries under influence of alcohol/drugs
War, terrorism, nuclear events

03 / Understanding the Difference

Accident vs illness coverage

Different plans protect against different types of events.

Personal Accident

Event-Based

Trigger

Accidental injury only

Payout

Fixed lump sum

Claims

Simple, fast

Premium

Very affordable

Best for: Extra layer of accident protection

Hospital / Medical

Expense-Based

Trigger

Any hospitalisation

Payout

Reimburses actual bills

Claims

Bill-based

Premium

Moderate

Best for: Medical bills coverage

Critical Illness

Diagnosis-Based

Trigger

Specific illness diagnosis

Payout

Lump sum

Claims

Upon diagnosis

Premium

Higher

Best for: Serious illness financial buffer

How they work together

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?

Who accident plans are especially useful for

Accidents don't discriminate by job type or lifestyle.

👨‍💼

Working Adults

Extra protection layer beyond employer coverage. Income support during recovery.

💼

Self-Employed / Gig Workers

No employer coverage. Income stops when you stop. Critical safety net.

👨‍👩‍👧

Parents with Young Children

Active supervision increases accident exposure. Cover the whole family.

👴

Seniors

Higher fall risk. Often includes fracture benefits relevant to elderly.

🎓

Students

Active lifestyle, sports activities. Affordable coverage for young adults.

🚴

Active Lifestyle

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

What is general insurance?

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.

Life vs General Insurance

Duration Annual (renew yearly)
Covers Assets, events, liability
Payout Based on loss/damage
Examples Motor, home, travel

General Insurance Categories

Personal Protection

🛡️ Personal Accident
✈️ Travel Insurance

Property Protection

🏠 Home Insurance
🔨 Renovation Insurance
🏢 Landlord Insurance

Vehicle Protection

🚗 Motor Insurance Mandatory
🏍️ Motorcycle Insurance

Liability Protection

👥 Personal Liability
👩‍🍳 Maid Insurance Mandatory

Specialised Covers

🐕 Pet Insurance
📱 Gadget Insurance
💍 Event Insurance

Business / Professional

💼 Business Insurance
⚖️ Professional Indemnity
🏗️ Work Injury Compensation

Mandatory vs Optional Coverage

Mandatory in Singapore

Motor Insurance - required to drive on roads
Maid Insurance - required for foreign domestic workers
Fire Insurance - required for HDB mortgages

Optional but Recommended

Personal Accident - affordable, broad protection
Home Contents - protects your belongings
Travel Insurance - essential for overseas trips

06 / The Big Picture

How this fits into your protection strategy

Different layers of protection for different types of risk.

Protection Layering Framework

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.

Using Savings (Self-Insurance)

Depletes emergency fund meant for other goals
Opportunity cost - that money could be invested
Major accident could wipe out years of savings
No income replacement during recovery

Using Accident Insurance

Preserves savings for intended purposes
Small annual premium transfers large risk
Fixed payout regardless of actual expenses
Weekly income benefit during recovery

How much coverage is appropriate?

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

Common misconceptions

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.

Common planning mistakes to avoid

! Overlapping coverages without understanding what each does
! Ignoring exclusions until claim time
! Under-insuring high-frequency, low-cost risks
! Relying only on hospital plans for all protection

Review your everyday protection coverage

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.

Get a quote for specific coverage

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How This Fits Your Plan