Accident insurance

Accident insurance

Accidents happen. Accident Insurance provides cover to you and your dependents against the financial strain you may incur if, unfortunately, you have an accident. The coverage of an accident insurance generally includes:

  • accidental death
  • dismemberment
  • permanent disablement
  • weekly allowance during the period of temporary disablement (subject to a term as specified in the policy)
  • medical expenses arising from the treatment of the injury

Many policies have a benefit schedule which spells out the corresponding benefits against each type of accidental bodily injury. It provides a scale of percentages of the lump sum payable, depending on the extent of the disability, whilst some determine the benefits by the type of injury or loss, e.g. loss of limbs or sight.

Similar to critical illness insurance, accident insurance can be sold as a standalone policy or as an attached rider to a life insurance policy.

Do you need accident insurance?

You may consider accident insurance if you are the primary bread winner as the protection can help ease the financial worries of your family when you lost.

If you're employed, meanwhile, your employer may have worker's compensation insurance, which would also help offset some financial strains brought about by an accident that occurred at your workplace.


Accidents covered generally include traffic accidents, homicide, falls, heavy equipment accidents, and drowning, among others. As with all types of insurance, there are exclusions as to what types of accidents are covered which you should check carefully before buying the policy. Some of these include:

  • death by illness
  • suicide
  • war injury
  • natural causes (ie, old age)
  • death while under the influence of any non-prescribed drugs or alcohol
  • overdose with toxic or poisonous substances
  • engagement in dangerous activities eg professional sports

Things to note

Before you purchase accident insurance, do note that:

  • The claim processing period may be longer than with other types of insurance policies. For example, an autopsy may be required to verify the nature of the death and/or the accident may have to be officially investigated before a claim will be approved by the insurance company.
  • Some policies offer no-claim bonus if no claims are paid for a specific period. No-claim bonus may be in various forms eg increase in the amount of benefits, refund of a certain percentage of premiums, or discounts on renewal premiums, etc.