What is Personal Accident Insurance?
Personal Accident Insurance can help protect individuals in the event of accidental injury or sickness that results in you being unable to work. Cover can be applied to meet your individual needs and can include weekly benefits, capital benefits and optional weekly business expenses cover to support you if you are injured or sick and are unable to work1.
Why do I need to consider Personal Accident Insurance?
Protecting your financial position, should you injure yourself or become sick is very important to maintaining your lifestyle and protecting your family. With a personal accident insurance policy, you may be able to receive payments in the event you are not able to continue earning your regular income due to accidental injury or sickness1.
Let’s learn more about Personal Accident Insurance
How is Personal Accident different to Income Protection?
Use the table below to identify the key differences between each type of cover, as they can be confused.
Insurance policies are typically underwritten by general insurance companies and predominately available for purchase through insurance brokers or direct insurer sales.
Personal Accident is particularly important for small businesses and sole operators to consider where cover under workers compensation insurance may not be available given non-employee status
Personal Accident cover does not require a medical test
Income protection insurance is typically available from life insurance companies and financial advisors.
Income protection insurance is often incorporated as a benefit within a superannuation fund or as benefit offered by employers to employees.
Income protection may be more expensive and selective around occupations
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When it comes to Personal Accident Insurance, deciding on the cover you need might not be easy. Aon is committed to making life easier for you by arranging insurance that’s easy to understand, buy and manage.
Or if you do need more information, our team of friendly experienced brokers are a phone call away to help you understand what insurances you may or may not need, but more importantly, why. Helping give you confidence that you’re making a better decision for you and your business
• Weekly Sickness Benefits
• Capital Benefits, lump sum payments
• Business Expenses, weekly
• Ability to apply cover to suit requirements
- Weekly Benefit payments up to 85% of your average weekly income (or other agreed value) if you are accidently injured or become sick and are unable to work.1
- Select an excess period of time either 14 or 28 days before payments commence.2
- Approved claim payments can be made for up to 52 or 104 weeks (whichever level of cover you select when purchasing this policy).
These expenses typically can include expenses such as rent, electricity, water, gas or telephone charges; lease payments for equipment or motor vehicles; and other expenses that are usual for your type of business and for which you are entitled to claim as business expenses for income taxation purposes (except depreciation).
They do not typically include:
- cost of capital equipment;
- personal expenses;
- cash drawings from the business for personal use;
- wages, salaries or fees for you; or
- the cost of stock or merchandise
Capital Benefits Cover is an additional optional cover which is intended to provide a lump sum payment when you suffer an injury. You can choose the lump sum benefit amount and also select the insured events to be covered by the policy.
- The amount of lump sum benefit varies between 1 - 100% of the insured amount – depending on the severity of the injury.
- You can change the level of Capital Benefits cover you wish to be insured against and select the sum insured from a range of $50,000 to $200,000 (higher limits available upon application).
5. What is not covered under Personal Accident insurance?
Every policy has terms, conditions, and exclusions, and you must read the Product Disclosure Statement and policy wording to fully understand the all the terms, conditions and exclusions. Notable exclusions for personal accident insurance are:
- Pre-existing conditions, sickness or injuries
- Injury related to high-risk activities (such as parachuting or hang gliding)
- Claims arising from participation in professional sport
- Claims occurring while under the influence of alcohol and drugs
- Deliberate self-infliction of injury or sickness
If you become aware of a matter/issue that may be (or give rise to) a claim, you must notify us as soon as possible and provide all relevant correspondence and documentation. You can notify a claim by calling Aon on Call 02 6190 0958, emailing email@example.com, or writing to Aon at PO Box 1331, Parramatta, 2124
7. What is required to renew my policy?
When your policy is due for renewal, an Aon broker will be in contact prior to the expiry date of your policy to discuss your details to ensure any changes required are updated accordingly.
2An Excess Period means the waiting period expressed in days before a payment is made under the policy coverage.
© 2023 Aon Risk Services Australia Limited ABN 17 000 434 720 AFSL no. 241141 (Aon)
Personal Accident and Sickness Insurance is arranged by Aon as agent for the insurer, AFA Pty Ltd (ABN 83 067 084 333) AFSL no. 247122 (AFA), who act on behalf of Zurich Australia Insurance Limited (ZAIL), ABN 13 000 296 640, AFSL 232507. If you purchase this insurance Aon will receive a commission that is a percentage of the premium. Please let us know if you would like any further information.
The information contained on this website is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider your personal circumstances, as well as the relevant Product Disclosure Statement and Target Market Determination (if applicable) and full policy terms and conditions available from Aon on request. All representations on this website in relation to the insurance products we arrange are subject to the full terms and conditions of the relevant policy. Please contact us if you have any queries.