Types of Accident Insurance
Accidents are difficult to predict, so having accident insurance can provide protection for oneself and one’s family. Let’s learn about the definition and types of accident insurance!
Accident Insurance Helps Reduce the Impact of Accidents on Yourself and Your Family
Accidents are unforeseen events, and no one can predict when they will happen or what impact they will cause on us. What we can do is manage the risks beforehand and minimize the impact on ourselves or our families when accidents occur.
One of the simplest and most effective ways to do so is to purchase accident insurance. As we have mentioned before, the premium cost is related to the likelihood and severity of the risk occurring.
Compared to the probability of getting sick, the likelihood of having an accident is lower, so the premium for accident insurance is not expensive.
However, in the event of an accident, the consequences can be either minor or severe and can lead to serious consequences at any time. Therefore, this type of risk is very suitable for transferring to an insurance company through the purchase of insurance.
Types of Accident Insurance
Accident insurance is generally divided into accidental death and Bone fracture insurance, as well as accidental medical compensation insurance.
1. Accidental Death and Bone fracture Insurance
If the insured person suffers permanent disability or death due to an accident, they can receive a one-time compensation. This type of insurance is more suitable for families who are the breadwinners and are worried about their ability to work or make a living due to accidents.
The insurance company will specify on the policy the amount of compensation that can be obtained for different degrees of injury (usually shown as a percentage of the insured amount).
Therefore, severe disabilities such as lose of limbs (one or more limbs), loss of vision, or severe burns, as well as relatively minor injuries such as the loss of a joint in a hand or foot, all have the opportunity to receive different amounts of compensation.
The table below shows the compensation table of a certain insurance company in Hong Kong for reference.
| Injury | Claim ratio of the Sum assured insured |
| Loss of life | 100% |
| Permanent and complete loss of vision in both eyes | 100% |
| Permanent and complete loss of vision in one eye | 100% |
| Loss of both limbs or permanent and complete loss of their function | 100% |
| Loss of one limb or permanent and complete loss of its function | 100% |
| Loss of speech and hearing | 100% |
| Permanent and incurable mental illness | |
| Permanent and complete deafness | |
| 75% |
| 25% |
| Loss of speech ability | 50% |
| Permanent and complete loss of the crystalline lens of one eye | 50% |
| Loss of any four fingers and thumb or permanent and complete loss of their function | |
| 705 |
| 50% |
| Loss of any four fingers or permanent and complete loss of their function | |
| 40% |
| 30% |
| Loss of any thumb or permanent and complete loss of its function | |
| 30% / 15% |
| 20% / 10% |
| Loss of any finger or permanent and complete loss of its function | |
| 10% / 7.5% / 5% |
| 7.5% / 5% / 2% |
| Loss of any toe or permanent and complete loss of its function | |
| 15% |
| 5% |
| 3% |
| Fracture or dislocation of the leg bone or knee that cannot be restored | 10% |
| Shortening one leg by 5 cm or more | 7.50% |
| Third-degree burns | |
| Percentage of the body burned | |
| 100% |
| Not less than 5% but less than 8% | 75% |
| Not less than 2% but less than 5% | 50% |
| 100% |
| Not less than 15% but less than 20% | 75% |
| Not less than 10% but less than 15% | 50% |
2. Accidental Medical Insurance and Coverage
Another type of accident insurance is accidental medical insurance. Simply put, this insurance will reimburse the medical expenses incurred due to accidents, including outpatient visits (registered GP or physiotherapy, chiropractic or bone-setting, etc.).
Some insurance companies extend coverage to hospitalization or surgery required due to accidents, as well as psychiatric treatment.
