What is the difference between Personal Accident Cover and Health Insurance?

If you accidentally burn yourself and require a skin graft, should your A) Personal Accident Policy or B) Health Insurance cover the cost of the surgery?

If you answered B, you’re spot on!

If you answered A, we understand where the confusion comes from; but Personal Accident cover isn’t quite what it sounds like. What it covers is basically: Loss of sight, loss of limb or permanent disablement, or accidents that happen on an occupational basis.

Here are the key differences between the two:

Health vs Personal accident insurance

By now you already know that health insurance policies will cover expenses due to hospitalisation and medical procedures caused by illness or injury, even those resulting accidents.

A personal accident policy on the other hand, has a more narrow coverage. The beneficiaries of this policy can only get their benefits in the event of accidental deaths or permanent or partial disability due to an accident.

Medical coverage

When it comes to medical coverage, a health insurance policy might offer comprehensive financial coverage of any medical expenses due to all sorts of illnesses, injuries, and other medical conditions.

While a personal accident policy may also cover medical bills, it will only cover those that stem from accidental injuries.

Disability Expenses

Some accidents can be so bad that it can cause severe bodily damages, resulting in disabilities. These injuries are referred to in insurance policies as permanent total/partial disability and temporary total/partial disability.

Your health insurance policy will not provide any  coverage against any disabilities caused by accidents.

A personal accident policy provides up to a specific percentage of the insured sum as cover for disabilities caused by accidents,

Death Coverage

Not only does the sudden death of a loved one cause a heavy burden on families emotionally, but financially as well. A death coverage can be helpful with financial adversity in these sad times.

However, a health insurance policy does not provide any coverage against sudden death, as death is typically covered by life insurance.

A personal accident policy covers against accidental death and turns over 100% of the assured sum to your nominee and/or beneficiary.

We hope this article has answered any questions that you might have had, but if not, we’d love the chance to provide more information!

Get in touch by paying us a visit at our branches (Maison Esplanade – Victoria, Pension Complex –Baie St. Anne Praslin, Green Corner –Providence)  or call us on 429 5000 or send an email to info@sacos.sc. We’ll be more than happy to help!

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