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Personal Accident Insurance

Compare personal accident insurance offers with Savvy to help you get a policy that gives you peace of mind.

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, updated on July 10th, 2023       

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Life Insurance

We’ve partnered with Compare Club to bring you a range of life insurance policies to help you compare them side by side.

Personal accident insurance can provide you with invaluable financial cover when you’re out of work and need it the most. It's important to find the best cover, although it may feel easier said than done given the many policy options to choose from. Luckily, that's where Savvy can help.

By comparing policies from Australia's leading insurers with us, you can weigh up the pros and cons of personal accident products to see which offers the most benefits at the lowest cost. This allows you to find a deal that gives you the best bang for your buck. Start comparing with Savvy and get a quote through us today.

What is personal accident insurance and how does it work?

Personal accident insurance is a specific kind of life insurance cover that provides you with a financial safety net if you're involved in an accident and need to take temporary or permanent leave from work. When choosing personal accident insurance, you can take out cover in a larger income protection insurance bundle or as a standalone policy. The benefit of taking it out as a bundle is that your policy will be more extensive and provide cover for a range of illnesses in addition to injuries.

Depending on the type of cover you take out, you can receive your benefit amount as either a lump sum or through fortnightly or monthly repayments. Your benefit amount can be up to as much as 75% to 85% of your income.

To make a claim on your personal accident insurance, it’s important you get in contact with your insurer straight away to be begin the process. For your claim to be approved, you’ll be asked to supply various documents including:

  • A doctor’s certificate or medical statement.
  • Copies of CT scans or x-ray scans which prove your injury.
  • Proof of ID such as a valid driver’s licence or passport.

What types of personal accident insurance can I choose from?

Personal accident insurance can be taken out as the following types of cover:

  • Standalone personal accident insurance: this type of insurance includes cover for injuries as a result of accidents such as fractures, loss of limbs or burns. Your benefit is paid out as a lump sum under this type of policy.
  • Income protection insurance: this type of policy provides cover for injuries or illnesses which prevent you from returning to work temporarily. Your benefit is paid in fortnightly or monthly repayments. 
  • Total and permanent disability (TPD) insurance: this covers situations of total and permanent disablement from serious injuries or critical illnesses. 
  • Accident-only income protection insurance: this type of insurance is for injuries as a result of an accident which temporarily prevents you from going to work. Your benefit is paid in fortnightly or monthly payments.

What does personal accident insurance cover?

Inclusions on your personal accident insurance will vary depending on the type of policy you choose and the type of cover you need. You may choose to opt for cover which gives you financial support if you’re out of work due to injury, illness or both. Moreover, optional extras for your cover can include disablement benefits, business expenses cover or death benefits.

You can be covered for injuries sustained from a range of situations including tripping over a roadside kerb or falling off a ladder in your backyard. To understand the inclusions in their entirety, make sure you read your policy’s Product Disclosure Statement (PDS).

Depending on whether you take out a standalone personal accident insurance policy or cover as an extensive income protection package, your inclusions can include an array of injuries or illnesses including the following:

  • Fractures: whether you fracture bones in your arm, leg, back or face, you’ll be covered under your personal accident insurance policy. For example, if you fractured your arm or hand and you're unable to return to work, you'd be covered under this clause. 
  • Dislocations: falls and dislocations are all too common in life, especially as we age. If you dislocate your shoulder, knee, finger or ankle and you need time off work, your insurance can cover you. 
  • Loss of limbs: being involved in an accident which results in you losing an arm or leg can be extremely traumatic. If you're involved in an accident such as this, your insurance would cover you. For example, if you're in a car accident and need to have your arm amputated, your insurance would cover you.
  • Loss of sight: if you sustain a severe eye injury and it prevents you from working, you'd be eligible to make a claim on your personal accident cover. For example, if you were exposed to an extremely bright light or electric shock and lost part of your vision, your insurance would cover you. 

Aside from purchasing a standalone policy, you can also choose to bundle several life insurance policies. This allows you to purchase more than one policy. For example, you may roll income protection, life insurance and personal accident insurance into the one policy so you're covered for a whole range of events. 

Some of the areas you may be covered if you chose to combine your policies include: 

  • Stroke – the likelihood of suffering a stroke increases as you get older. An income protection package will give you the financial support you need while you’re in hospital or at home on the road to recovery.
  • Cancer – can include cover for benign or malignant tumours. As you grow older, you might be more susceptible to various forms of cancer which may keep you out of work for a short or long period of time.
  • Heart conditions – whether it be cardiac arrest, coronary artery disease or a heart attack, a heart condition may keep you out of work for an extended period of time. The benefits of an income protection package will give you time to get back on your feet and recover.
  • Paralysis – a severe car crash or fall from height whilst gardening could result in paralysis. This would be a scary time for yourself and your loved ones. The money provided by an insurance package in this time can help ensure there’s one less thing to worry about.
  • Dementia – although you might still be able to work with early signs of dementia, you will no doubt be out of work and without an income as it progresses. An insurance package can support you and your family’s finances through this difficult time.

What’s excluded under personal accident insurance?

What isn't included in each personal accident insurance policy may vary, but there are common exclusions which apply to most policies. These include:

  • Pre-existing health conditions: pre-existing conditions which are known before the policy was taken out will be excluded. This will also prevent you from getting cover after you’re injured or fall ill and then make a claim.
  • Pregnancy-related injury or illness: claims related to pregnancy, birth or resulted complications won’t be covered. For example, you won’t be covered if you are out of work due to a serious and extended bout of morning sickness.
  • Drugs and alcohol: if you were under the influence of either drugs or alcohol when you were injured, you won’t be covered.
  • Mental illness: claims relating to mental illness will not be covered.
  • Criminal acts: if you suffer an injury or fall ill as a result of a criminal act, you will be excluded from cover. 

What’s the difference between workers compensation insurance and personal accident insurance?

There are a number of differences between workers compensation insurance and personal accident insurance in terms of how they function and can help you financially. Here’s how they vary:

Workers compensation insurance:

  • This is usually applied by your state or territory government.
  • For businesses employing staff, it’s a compulsory requirement which covers workers for injuries or illnesses sustained at work. It’s important to note that company owners are usually exempt from this cover.
  • Depending on your state or territory, workers compensation insurance may or may not be available through an insurance company. Workers compensation insurance in NSW, Victoria, Queensland and South Australia are government-owned and operated, while it’s carried by licenced insurers in Western Australia, the Northern Territory, Tasmania and the ACT.

Personal accident insurance:

  • Unlike workers compensation insurance in some states, personal accident insurance is taken out by an individual through an insurance company.
  • Depending on your type of cover, it can cover up to 85% of your income if you’re injured or ill and can’t return to work.
  • This can be purchased as a standalone policy which has less comprehensive cover or as a bundled income protection package with more comprehensive cover.
  • Compulsory for self-employed workers in certain jobs before they step on a work site.
  • Covers your own income and not that of your employees.

Types of life insurance

Why compare life insurance through Savvy?

How do I compare personal accident insurance cover with Savvy?

Top tips when applying for personal accident insurance

Work out what you need

If you’re injured or ill and out of work, you don’t want to be struggling to get by with a minimal benefit amount. Make sure your cover will comfortably support you if something does go wrong so you don’t have to worry about your finances.

Prioritise extensive cover

You never know what situation could lead to an accidental injury or illness. Any range of activities at home, work or simply out and about could result in an injury. It’s vital that your injury or illness is covered and you aren't left regretting your choice of personal accident insurance cover.

Opt for a five-year benefit period

Make sure you choose a policy which provides a sufficient benefit period. If you are injured or seriously ill and require benefit payments to get you by, you want these payments to last as long as possible. If there's any risk of your recovery taking longer than two years, it might be worth considering your options (although this will be more expensive).

Consider shorter waiting periods

The shorter the waiting period of your cover, the quicker you’ll be able to make use of your cover in the event of injury or illness. Waiting periods for personal accident insurance may range from two weeks to three months.

Pros and cons of personal accident insurance

PROS

Gives you a financial safety net 

Taking out personal accident insurance will ensure you get the necessary financial support if you're temporarily or permanently unable to work.

Allows you to focus on your recovery

If you’re injured or ill and out of work without an income, you may rush your recovery to get back to work. Personal accident insurance will replace your income and allow you to shift your focus on your recovery and your own health.

Peace of mind

When you’re physically and emotionally strained, the last thing you want to worry about is your finances. Taking out personal accident insurance will give you, your partner and your family peace of mind that your insurance will pay for things like medical and living expenses or a mortgage.

CONS

Subject to waiting periods

Like many forms of insurance, your personal accident insurance will be subject to waiting periods before you can make a claim on your cover. This period is often anywhere from two weeks to three months, and if you try to make a claim during this period, it will be rejected.

Restricted to certain age requirements

All personal accident insurance policies will have age restrictions in place. Under many policies, once you reach the age of 65 you will be charged extra every year which follows.

Benefit period restrictions

When you make a claim, the maximum benefit period for which you will receive fortnightly or monthly payments is either two or five years, which will differ between insurers.

Frequently asked questions about personal accident insurance

How do I apply for personal accident insurance?

Applying for personal accident insurance is a simple online process with Savvy. This includes:

  • Get a quick quote: you'll first need to provide your insurance company with some basic information such as your name, date of birth, whether you're a smoker and if you suffer any existing health conditions. Once you submit this information, your life insurance quote will be generated.
  • Compare your offers: do a side-by-side comparison of quotes from different insurers and the premium estimates for each. If you've got your eye on one particular policy, you can schedule a call with a life insurance expert to talk about your specific needs.
  • Purchase your policy: once you've gone over your policy and its fine print with your insurance expert, you can purchase it. It can take anywhere from two weeks to two months for your policy to come into effect.
Is it necessary to buy personal accident insurance?

Certain lines of work, such as working a trade, may require you to take personal accident insurance before stepping on the work site. This is especially relevant to sole traders as they are not eligible for workers compensation insurance. Even when it’s not compulsory, if you were to be injured and out of work for an extended period, you may not be able to support your loved ones. 

How does age impact the cost of personal accident insurance?

Every personal accident insurance policy contains age limits which will restrict or increase the cost of your cover once you reach the age of 65. As you grow older and more prone to accidental injury or illness, certain insurers may opt to reduce your cover’s benefit amount.

Will my personal accident insurance cover me for injuries or illnesses sustained overseas?

Cover for injuries or illnesses sustained overseas will vary between insurers. In most instances, you'll be covered but it’s important you check with your insurer or read the PDS.

How long does it take for a claim on personal accident insurance to be processed and approved?

Processing times will vary between insurers, but once you have supplied all the required documents, your claim could be approved within a few days to a few weeks.

Can my personal accident insurance premium be tax-deductible?

The premiums you pay on your personal accident insurance may be tax deductible. However, this depends on the type of cover you buy. If your personal accident insurance is through income protection insurance, it can be tax deductible. However, your personal accident insurance won't be tax deductible if you take out your policy through a superannuation fund or have your benefit amounts paid as a lump sum.

How do I get the best personal accident insurance quote?

To get the best personal accident insurance quote, you should try to explore your options broadly and consider both the premium and financial coverage of your policy options. You can compare your options with a range of insurers online with Savvy.

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Disclaimer:

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Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

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