Unexpected events, such as accidents and violence, may happen in the future and cause financial loss and loss of income to you and your family. To minimize the effects of these unexpected events, you must purchase personal accident insurance Malaysia.
This insurance provides you or your dependents financial security when you get injuries, become disabled, or pass away due to accidents or unexpected events. Therefore, your family can pay living expenses even if your injuries cause you to lose your income.
About Personal Accident Insurance
Some Malaysians think that their SOCSO already protects them against accidents. As a result, they don’t want to purchase additional personal accident insurance Malaysia. However, SOCSO has its limitation. It only offers protection against work-related accidents and injuries.
Therefore, you must consider purchasing PA insurance if you think SOCSO doesn’t provide suitable protection. Below are several key points you must know about this insurance before purchasing it.
1. Who is it Best for?
Everyone may purchase personal accident insurance. However, it is best for the following people.
- People who are the sole provider of their family.
- People with high-impact hobbies.
- People who think they have higher risks of work-related injury because their jobs include manual work, operating machinery, or long commuting journeys.
- Only child with elderly parents.
2. Amount Coverage
The amount of personal accident insurance coverage Malaysia varies depending on the insurance policies and insurance companies. The accidental death and permanent disablement coverage varies between RM10,000 and RM3,000,000.
Meanwhile, the medical expense coverage ranges from RM300 to RM1,200. Therefore, you can choose a PA insurance policy that is affordable to you and be able to meet your needs.
3. Factors that Affect the Premium
The lower the PA insurance coverage, the lower the premium is. However, other factors can affect the premium of PA insurance. They are your occupations and hobbies. Some insurance companies will charge you higher premiums if you have high-risk occupations and hobbies.
Meanwhile, other companies exclude particular hobbies and occupations. Consequently, you must find out the exclusions of the personal accident insurance you plan to buy.
4. Exclusions
Insurance companies consider particular occupations as hazardous occupations. Therefore, people with these jobs are ineligible for personal accident insurance Malaysia. They also place particular exclusions under PA insurance policies.
Below are some hazardous occupations that most insurers have on their lists.
- Occupations related to civil defense, e.g., firemen, soldiers, jet fighters, police officers, marines, etc.
- Occupations related to the construction industry, for example, timber loggers, miners, woodworking machinists, crane operators, demolition squads, etc.
- Other occupations, such as oil riggers, war correspondents, pilots, professional athletes, seamen, aircraft operators, etc.
PA insurance policies do not cover injuries, disablement, and death caused by excluded events.
- Suicide or self-inflicted injury
- Pregnancy
- Pre-existing physical defects,
- HIV/AIDS
- Hazardous sports
- War
- Terrorism
- Unlawful activities
PA Insurance Benefits
You will get several benefits when you purchase Malaysia personal accident insurance. The benefits you get depend on your PA insurance plan. The most common PA insurance benefits offered by insurance companies are as follows.
- Medical Expense: Insurance companies will pay for your medical treatments when you get accidental injuries.
- Hospital Cash Allowance: It is a cash benefit given by insurers in return for your disability to earn money when you are hospitalized due to personal accidents.
- Death Benefit: Insurers give a particular amount of money to your beneficiaries if you pass away in an accident.
- Permanent Total/Partial Disability Benefit: You will get money from your insurer if you suffer from a permanent disability.
- Funeral Expense: Insurers will give money to your family for paying your funeral expenses if you die in an accident.
- Double Indemnity: Insurance companies pay twice the amount of accidental death coverage to your beneficiaries if you pass away due to an accident that happens in public transport.
Types and Classes of Personal Accident Insurance
PA Insurance is available in several types and classes.
1. Types of Personal Accident Insurance Plans
PA insurance companies design various types of PA insurance plans to cater to the different needs of different people. Commonly, they offer five types of insurance plans.
- Takaful: It is a cooperative policy. Takaful policyholders or participants donate a particular amount of money so they can use the collected funds to help each other who need medical expenses, disability expenses, etc.
- Individual Plan: This plan provides coverage only for the policyholder.
- Family Plan: The family PA insurance plan covers the policyholder’s family.
- Couple Plan: This plan provides PA insurance coverage for married couples.
- Children Plan: This personal accident insurance plan covers the policyholder’s children.
2. Classes of Personal Accident Insurance
When it comes to shopping for personal accident insurance, you will find some specific terms. Some of them are class 1, class 2, and class 3. These classes refer to the classification of occupations.
- Class 1: Occupations included in this classification are occupations with low risk of personal accidents. These occupations involve clerical work and non-manual work, including full-time students.
- Class 2: It covers occupations that involve traveling outside the office and supervisory work.
- Class 3: It provides coverage for non-hazardous occupations. Those included in this category are occupations that involve manual work and the use of machinery and tools.
Best Personal Accident Insurance Malaysia
You can purchase personal accident insurance from various insurance companies in Malaysia. Two of these companies offer excellent PA insurance plans.
1. Etiqa Takaful Malaysia
Etiqa Takaful Malaysia offers takaful and conventional PA insurance in many plan choices. People aged 45 days to 65 years old are eligible for these plans.
The death/permanent disability coverage of these plans ranges from RM50,000 to RM250,000. Moreover, the medical expense coverage starts from RM2250 to RM 5000.
2. Great Eastern Life
Another insurance company in Malaysia that offers excellent PA insurance plans is Great Eastern Life. This company has many PA insurance plans to meet your every need. Some of them are the Classic PA plan, Lady Protector plan, and Platinum PA plan.
Personal accident insurance Malaysia is an excellent supplement to the SOCSO you already have. It protects you against financial loss caused by accidents or unexpected events. Several benefits you can get from this insurance are medical expenses, death benefits, and permanent disability benefits.