What is personal accident policy?
Personal accident policy provides financial protection to policyholders against any tragic events or accidents that cause injury / death. It provides cover for injuries, disability or death caused solely by violence or physical force, accident, external or visible means. The policy operates 24 hours a day, 7 days a week and is a worldwide cover. This means that any individual who purchases a personal accident policy from Ghana is covered against any accident that occurs outside the country. For example, a traveler can claim under his personal accident policy for injury sustained in USA when on vacation.
What is the eligibility criteria for the personal accident insurance policy?
Any individual who is between the ages of 18 to 65 years is eligible to purchase personal accident insurance policy. The maximum age limits for most insurers in Ghana range from 65 to 70 years. Individuals who are older than 70 years can still get personal accident insurance cover from insurers at a higher premium and other strict policy conditions.
Types of personal accident policy
- Group Personal Accident Policy:
Group personal accident is a personal accident policy undertaken by business owners or employers to cover their employees against any bodily injury / death sustained by their employees in the course of their employment. This policy can be undertaken by all types of businesses no matter the size. Examples of businesses that can take the group personal accident policy are mining firms, manufacturing companies, driver unions, construction companies, educational institutions, hospitals and any other organization that employs people.
- Individual Personal Accident Policy:
As the name suggests, personal accident policy is undertaken by individuals against any accidental injury / death in the course of their daily activities. There is no discrimination with regards to the kind of individual who can take this policy once he / she meets the age limit.
What does personal accident policy covers?
- Death
Death is covered only through accidents. The limit of cover is paid to the next of kin or the family members of the deceased.
- Permanent disability
Disablement which permanently prevents the Injured Person from engaging in his usual occupation and is without expectation of recovery. E.g. total blindness, loss of arms or both legs, paralysis, total deafness and total loss of speech.
- Temporal disability
Disablement which prevents the injured party from engaging in his normal occupation in the interim. E.g. Broken leg or arms. A weekly benefit for a specified maximum period is payable to the injured person.
- Medical Expense
Provides cover for medical expenses incurred by the injured person or workman up to the required limit.
What are the key exclusions under personal accident policy?
- War and any warlike situations.
- Terrorism.
- Active service in the Armed Forces.
- Suicide or intentional self-inflicted injury.
- Medical or surgical treatment except where such treatment is rendered necessary by bodily injury.
- Sickness or disease not directly resulting from Bodily Injury.
- Engaging in professional sport.
- Under the influence of intoxicants or drugs
- Insured’s willful exposure to peril
What details do insurance company require in order to enable them issue PA policy?
Most insurance companies will require the insured or the policyholder to complete a proposal form.
Basic requirement on every proposal form are:
- Name and occupation of the individual / policyholder
Clerical- lawyers, teachers, doctors.
Non-Clerical- mining, security work, taxi drivers.
- Age of the individual
- Previous accident history
- Previous claim history
- Financial benefit or limit required
How do I buy PA insurance policy?
The most common channels available to purchase PA insurance policy are:
- Buying the policy directly from the insurance company
Individuals and organization can purchase their PA insurance policy by contacting insurance companies directly. This can be done through phone calls, emails or visit to the insurance company’s physical office
- Buying the policy through an insurance broker or agent
Individuals and companies can also purchase PA insurance policy through insurance brokers. Insurance brokers are independent intermediaries who can assist you to purchase your insurance package from any insurance company of your choice. Most corporate organizations use the services of insurance brokers because of the extra professional services they provide. Accredited agents of a particular insurance company can also be used
How much does personal accident insurance policy cost?
The cost of personal accident insurance depends on the category of work of the policyholder, the limits required and their age. Premium for non-clerical workers such as drivers and mining staff are expected to be higher than that of clerical staff (bankers and lawyers).
What are the requirement to make an injury claim under a personal accident policy?
- Medical Report
- Completed Claim Form
- Letter of Claim from Employer (for organization)
- Pictures of Injury sustained
- Police Report (in case of road accident)
- Original copies of medical bills
- Recent Payslip of Employee (for a company)
- Copy of Employee’s Letter of Appointment
What are the requirement to make a death claim under a personal accident policy?
- Completed claim form
- Letter from employer or family
- Police report in the case of road accident
- Cause of death / burial certificate / death certificate
- Probate / letter of administration
Conclusion
Having a personal accident policy provides financial protection to cover the risk of injury / death caused by accident. Having group personal accident policy for your staff will also serve as a motivation for them to work hard as they are fully aware of some benefits in the event of work place injury or death. PA policy can be purchased directly from the insurance company or through an intermediary.