PERSONAL ACCIDENT INSURANCE

What does Personal Accident Insurance not typically cover?

• Accidental death

• Permanent disability due to an accident

• Accidental injuries (e.g. broken bones, burns, sprains)

• Medical expenses for illness

Which of the following scenarios qualifies for a Personal Accident Insurance claim?

• Hanafi gets dengue fever and is hospitalised

• Amir sustains severe injuries due to an accident

• Chong undergoes surgery for appendicitis

• June develops back pain from sitting too long

Rahim's policy provides the following benefits:

• - 100% for accidental death

• - 70% for permanent disability

• - 40% for loss of one leg

• - 10% for minor injuries

If Rahim becomes paralyzed due to an accident, what percentage of the sum assured will he receive?

• 10%

• 70%

• 40%

• 55%

Answer explanation

Paralysis is considered Total Permanent Disability (TPD).

Aina buys a Personal Accident Insurance policy with a sum assured of RM300,000. The annual premium is RM4 per RM1,000 of coverage.

If she pays the premium quarterly, how much does she pay every 3 months?

• RM 350

• RM 200

• RM 150

• RM 300

A policyholder has a sum assured of RM500,000 and the following coverage:

• - 100% for accidental death

• - 80% for total permanent disability

• - 50% for loss of both arms

• - 25% for loss of one arm

• - 10% for minor injuries

If the policyholder loses one arm and sustains minor injuries, calculate the total compensation.

• RM 300, 000

• RM 175, 000

• RM RM 350, 000

• RM 225, 000

A policy states that a service charge of 7% is applied to the total premium. If a person’s annual premium is RM2,500, calculate the total amount they must pay after including the service charge.

• RM 1, 250

• RM 2,675

• RM 2, 560

• RM 1, 500

Daniel is comparing two Personal Accident Insurances.

If Daniel wants better permanent disability coverage, which policy should he choose?

• Policy X

• Policy Y

• None

What is the main purpose of Personal Accident Insurance?

• To replace a health insurance policy

• To cover all diseases and illnesses

• To provide compensation for injuries caused by accidents

• To pay for all medical treatments

Why might a person choose a Personal Accident Insurance policy with a higher premium?

• It automatically includes coverage for pre-existing conditions

• It covers all types of hospital treatments

• It provides higher compensation for serious injuries

Answer explanation

Higher premiums - better coverage amounts and more benefits for the policyholder

What should a person do immediately after an accident to increase their chances of a successful insurance claim?

• Ignore minor injuries and only report major accidents

• Inform the insurance company as soon as possible and provide medical reports

• File a claim only if they need financial help