Personal accident
and travel insurance
Personal accident cover pays out a lump sum which is supposed
to compensate you (or your heirs) if you are disabled (or
die) as a result of an accident. If you already have life
insurance which pays out on your death and/or permanent health
insurance which pays out if you are injured, personal accident
cover is of limited value.
What is covered
The situations in which the lump sum will be paid out are
very specific. The cause of the accident must be violent and
not of your own making – you will be covered if you
are knocked down by a hit-and-run driver, for example –
and your death or the injuries you sustain must be as a direct
result of the accident. Provided these conditions are met,
the lump sum will be paid if the accident causes:
• Your death
• Total and permanent loss of sight in one or both of
your eyes
• Total and permanent loss of the use of one or both
of your hands or feet (which includes your hands and/or feet
being cut off)
• You to be so disabled that you cannot work –
policies vary on whether this means that you cannot do the
job you usually do or you cannot do any sort of paid employment.
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