Insurance products in the market are multiplying by the day and can be quite confusing.
They cover certain risk aspects thus providing financial security.
It makes the monetary burden associated with losses a bit bearable.
A sure way to differentiate one policy from the other is by understanding exactly what it provides and what purpose it serves in your life.
A general accident insurance also simply known as accident insurance is an indemnified type of policy that pays for unfortunate occurrences.
It makes accidents a less painful financial load by providing critical benefits that relate to the recovery of the insured.
Accidents happen anytime, anywhere and without prior warning, this is why an accident plan is such a vital requirement.
How to differentiate accident insurance from a general insurance?
There are four main categories of insurance policies namely: life insurance, motor insurance, health insurance, and disability cover.
When we talk of general insurance, in a nutshell, we are referring to non-life covers.
It is a generic terminology used to refer to insurance products that fall under any other risk but life risks.
Usually, these are short term policies that need renewal every year.
Under this umbrella you will find; temporary health insurance, fire insurance, motor insurance, travel insurance, and many more.
Many people tend to mistake an accident plan for health insurance because of the strong continuum that exists between the two, but they are ultimately different.
A health contract covers medical expenses for illnesses, while the former specializes in injury recovery.
It is not merely a substitute for health insurance but has its niche in terms of services provided.
How does it work?
A general accident cover is a viable option especially when a main health insurance offer is not on the table.
Typically, the insurance provider pays a specified amount directly to the policyholder unless otherwise stated.
Unlike a health plan, the insured is at liberty to do whatever they will with the proceeds, and the benefits pay far above what health contractors pay.
Normally, health insurance does not come with this advantage.
It strictly works off a reimbursement structure where the insurer compensates for medical expenses; free will money usage is not an option.
Other benefits associated with a general accident cover include:
- Ambulance benefits- this pays for emergency trips to the hospital when one has suffered an unfortunate incident. The insured is safeguarded from out-of-pocket expenses.
- The initial doctor’s visits in the emergency room with an extension of up to 6 follow up appointments.
- Hospital admission.
- General hospital-stay – a comprehensive accident cover can pay up to prolonged hospitalization dates. This means all the days you stay in hospital up to the time of your discharge.
- Diagnosis benefits- it refers to a treatment plan. For instance, if the one sustained injury from a broken bone, dislocated elbow, the x-ray charges are met by the insurance company.
- Surgery benefits- a surgery benefit applies to serious accidents and also basic ones such as a sprained ankle.
- Transportation and lodging needs- in case your treatment requires medical assistance from outside your city or town, you will have your travel expenses significantly cut down.
The indemnification process requires the policyholder to issue their medical costs in exchange for a specified cash amount.
Parents who happen to have kids in sports or vigorous co-curricular activities will find this kind of cover reliable and practical.
Nevertheless, it is not exclusive to home setups.
Outside of domestic environs, on-the-job- accidents do occur.
These are known as work accidents which are especially common to construction companies and other work stations.
The kind of accidents are prone to any age bracket however older employers usually 55 years and above tend to fall victim the most.
Here are some of the common accidents that offer a worker legal grounds to claim compensation:
- Fall accidents- they occur on staircases or as a result of poorly maintained staff equipment. According to the National Floor Safety Institute (NFSI), slip and fall incidents are the top cause for financial support claims. Some of the common injuries involved are fractures, knee or hand damage, and occasional sprains.
- Office accidents- these come in the form of back hurt, repetitive stress injuries, or a trip over the wire. Repetitive stress injuries are incurred from nerve sensory harm. They happen as a result of performing the same motion over and over again i.e.: keyboard typing. In severe cases, the casualty may suffer permanent damage. Back injuries crop up from old or low-quality furniture installments which could give way once an employee puts his/ her weight on it.
- Construction accidents- they take several different forms such as crane or forklift accidents, unfortunate mining incidents, heavyweight crashes, warehouse and factory calamities et cetera. Other times a worker may be exposed to harmful chemical substances that invoke respiratory complications or get hurt from collapsing buildings altogether.
Usually, state laws are put in place to protect employee rights.
For instance, the New York legislation requires employers to provide workers with a compensation plan or Social Security Disability benefits in the event one gets hurt while on work duty.
An accident insurance handles such contracts.
An accident insurance is also closely affiliated with an auto insurance policy.
Generally, a motor insurance covers loss, damage, or theft to any vehicle whether personal or commercial; but some insurance providers offer a personal benefits package.
Contract extensions will protect the rider against physical damage or bodily injuries that arise from traffic collisions; of course, at a higher premium.
According to a recent survey out of 363 comprehensive car policies, 95% included an accident protection cover while a further 2% allowed it to be included as an extra attachment.
Despite the favorable statistics, it is not advisable to assume that your motor insurance automatically comes with an accident plan.
Others do not. To be on the safe side ascertain whether your insurance provider pays for personal injuries.
Note: a personal benefit within a car policy comes into play only when you cannot claim from a third party.
When you want to lead a risk-free life, an accident plan is a recommendable cover.
It is flexible enough to fit in several scenarios ensuring you and your loved ones get the maximum possible protection.
For even further security consider owning both a life contract and a general accident insurance.