Personal accident insurance

Here is an example of a standalone personal accident insurance from the market. Several insurance companies offer similar terms

1. Compensation as % of sum insured

Death: 100%
Double Indemnity on weekends, public holidays and school holidays: 100%
Permanent Disablement: up to 100% depending on extent of disablement (defined in schedule)
Temporary Disablement: up to 0.1% per day, up to 104 weeks
Medical Expenses: up to $10,000 any one accident
Emergency Evacuation and Repatriation

2. General Exclusions (i.e. not covered by the policy):

pre-existing physical or mental defects
pregnancy
suicide
war risks
motorcycling
climbing or mountaineering necessitating ropes or guides
judo, karate and some hazardous sports

Note: you can pay a higher premium rate to cover some of these risks.

3. Example of a typical plan

Death: $100,000
Double Indemnity: $200,000
Permament Disablement: Up to $100,000
Temporary Disablement: $100 a day up to to 104 weeks
Medical Expenses: Up to $2,000

4. Premiums (inclusive of 7% GST) for the typical plan, depends on occupation:

Class 1: $72 (most office bound jobs)
Class 2: $92 (production and outdoor jobs)
Class 3: $127
Class 4: $209

5. You pay a lower premium for the basic cover, i.e. death and permanent disability cover, excluding temporary disablement and medical expenses.

6. You can apply for higher or lower coverage and pay a proportionately adjusted premium. If you change your occupation, the premium rate will be adjusted on each year's renewal.

7. The premium rate for a standalone personal accident policy is much lower than a rider to a life policy (providing similar coverage). It offers higher protection at a lower cost, compared to a life insurance policy.

Class 1: Profession of administrative, supervisory or clerical nature such as accountant, lawyer, banker, doctor, teacher, nurse, secretary, clerk.

Class 2: Professions of outdoor nature, work involving overseas travel or whose duties involves the occasional use of tools or machinery such as foremen, grocers, hairdressers, salesmen, tailors, surveyors, tourist guides.

Class 3: Profession involving manual work or use of tools or machinery, such as carpenter, builder, painter, driver, technician, hawker, unarmed security guard.

Class 4: Full time national serviceman, fireman, policeman, armed security guard, woodworking machinist.