Injury insurance, also known as Accident Insurance is insurance that covers the insured when involved in an accident that results in injury. This insurance is supplemental to other types of insurance, especially health and life insurance.
Injury Insurance covers different types of injuries resulting from accidents like ankle sprains, cuts, broken bones, etc. However, injuries sustained from self-infliction, careless use of sharp objects, suicide, etc. are not covered as they are not accidental.
This article explores the categories of accident insurance, how accident insurance works, the different types of injury insurance, and frequently asked questions about injury insurance.
Categories of Accident Insurance
There are three different categories of Accident insurance and the different types of accident insurance fall under any of these categories. They are:
- Death and Dismemberment
- General Accident Insurance
- Disability Insurance
Death and Dismemberment
This type of accident insurance covers the insured in the case of death or dismemberment resulting from an accident. While it covers death and dismemberment, there are situations that it usually doesn’t cover. The types of accidental death and dismemberment the insurance company covers are usually stated in the insurance policy. Therefore, one must read the insurance policy before signing.
Examples of situations that are not covered in the death and dismemberment insurance policy are suicides, war, illness, etc. Others are insurance company-specific.
General Accident Insurance
This type of insurance covers general types of injuries resulting from accidents that the insured may be in. It could be an injury from a fall, a sprained ankle, or an injury from being hit on the head. This type of insurance covers it.
Different insurance companies cover different types of accidents. Therefore, you must understand the kinds of accidents that the insurance company has stated in the insurance policy that they cover.
Before buying this insurance, read through the policy. Know what the possible claim for each accident type is. You never know what kind of accident you may be involved in.
Disability Insurance
This type of insurance is gotten mostly by the employers of labour. It is used to cover the employees of an organisation in the case of any form of disability acquired while on the job. Self-employed individuals can also get it for their businesses.
Short-lived disabilities are usually covered effortlessly, but when it is a long-term or permanent disability, the use of other types of insurance will be invaluable. They will support what you get from disability insurance.
How Does Accident Insurance Work?
Accident insurance works like other types of insurance: you choose the insurance company that you want to sign up with. Pay a visit to the company and find out how their insurance works, what kinds of accidents they cover, and the process of making a claim.
You also need to find out how their premium payments (which are usually monthly or yearly) are made and choose the frequency that works for you. Based on your preferences and those of the insurance company, you can set up your insurance policy and sign up.
Insurance Companies usually state in their insurance policies the minimum number of months or years that you are to pay your premium consistently before you can make a claim.
Types of Accident Insurance
There are different types of accident insurance. They are:
- Individual accident insurance
- Group accident insurance
- Personal injury insurance
- Sports injury insurance
- Work injury insurance
- Personal injury car insurance
Individual Accident Insurance
This is also known as personal accident insurance. This type of insurance provides coverage against unforeseen events resulting from accidents. Examples of such events are accidents causing bodily injury, permanent partial disability or permanent total disability, and accidental death.
Group Accident Insurance
This is accident insurance that covers a group of people. It is a group insurance policy that covers the insured group in the event of any accidents resulting in bodily injury or death. Most employers use this type to insure their employees.
Personal Injury Insurance
Personal Injury Insurance is a type of insurance that covers the insured in the case of accidents. This type of insurance covers you if you are involved in an accident that leads to bodily injury or death.
In some kinds of occupations where the individual is exposed to hazards daily, it is advised that the individual get this insurance policy. It can also be purchased for every member of the family.
This type of insurance, however, does not cover injuries or death gotten by driving under the influence of alcohol or drugs, self-inflicted injuries, suicides, adventures sports, etc. The types of accidents not covered are stipulated in the insurance policy.
Process of Making a Personal Injury Claim
Step 1: Get Medical Treatment
Before starting the process of making claims, first, get medical treatment for any injuries you may have incurred because of the accident. Ensure that every receipt for any medical cost is well documented as evidence.
Step 2: Determine the Kind of Claim
The kind of personal injury claim made is dependent on who caused the accident. There are two types of claims, namely:
- First-party Claims
- Third-party Claims
First-party Claims
This is the type of claim the insured makes. In other words, you are filing a claim for your injury and the repair of your damaged property.
Third-party Claims
This is the type of claim filed by the injured against the insurance company of another person or business that caused the accident. In other words, another person is filing for their injury with your insurance company.
If you are the one who caused the accident, then you should file a first-party claim. If you are a victim of the accident, file a third-party claim. A victim can be a passerby hit by the vehicle or the passenger in the car when the accident occurs.
Step 3: Report to the Insurance Company
Report the accident to the Insurance company as soon as possible. It could be while you are receiving treatment or after you have received treatment for your injuries.
Step 4: Provide Evidence of Accident for your Claim
While reporting to the insurance company, provide evidence to support your claim. You would be asked to provide pictures, eyewitnesses, etc. You may also provide proof of the extent of the damage caused to you. Have enough proof to back up your claims.
Step 5: Investigation
An investigation will be opened up by the insurance company to determine if all you have stated are true.
Step 6: Payment or Denial
If found true, the value of your claim is calculated and a settlement is issued. If not found true, the claim will be denied.
Sports Injury Insurance
Sports Injury Insurance is also known as Sports Accident Insurance. It is a type of insurance that covers the cost of treatment and support of the athlete or the insured when involved in a sporting activity.
It is advised that players of different sports, especially the high-risk ones, should get sports injury insurance. This is because accidents can happen even in the safest sports environment. Also, nobody knows how severe the injury might be and the cost of its treatment. So to manage the risk, sports injury insurance should be purchased.
As with other types of insurance, premiums are paid either annually or monthly. The amount of premium you will pay is dependent on the type of sports activity. This is because the type of sports either elevates the risk or reduces it. Sports like skydiving will pay a higher premium than table tennis or golf.
To make a claim, you have to prove that the sports accident was not your fault. The following are accident conditions under which you can make a sports insurance claim:
- Use of faulty equipment
- Poorly maintained stadium
- Playing in terrible weather
- Assault from other players
- Etc.
Self-employed Injury Insurance
This type of insurance covers the self-employed insured in the case of injuries that will cause the insured not to work, thereby losing income. It works alongside illness insurance for the self-employed. This is because both of them cause the self-employed to be away from work, leading to a loss of income.
This insurance can cover the insured for 12 months. Thereby providing living expenses for the insured until the insured is back to work or the duration stated in the insurance policy has been reached.
Self-employed illness and injury insurance cannot be bought for individuals who are less than 18 years old and above 60 years old. It is only for those who are working but are away from work due to illness or injury. There are other restrictions on the purchase and use of the insurance. Read the insurance policy properly before buying.
Work Injury Insurance
A Work injury is any form of injury gotten while at work or carrying out work-related activities. It is covered by Work Injury Insurance, also known as Workers’ Injury Compensation Insurance. Examples of work-related injuries are a fall caused by a chemical spill on the floor, an injury from a machine, etc.
In the United Kingdom, employers are mandated to buy this insurance for their workers who do manual labour and those who do non-manual labour but earn below $2600. The employer is mandated to get insurance for both local and foreign employees who fall within these categories. Failure to do so attracts a penalty. The employer, however, has the decision to either buy for the other employee’s insurance or not.
Worker’s Injury Compensation Insurance covers the employees of an organisation in the event of an injury incurred while on the job. The injury must be work-related for the insurance to cover the employee.
Personal Injury Car Insurance
Personal Injury Car Insurance is an add-on insurance when buying car insurance. It covers the insured in the event of an accident whereby the driver sustains injuries or even died from the accident.
Car insurance is mandatory in the United Kingdom and the Third-party category of car insurance is required basically for every driver. This third-party category of car insurance covers only the passengers and any other person or vehicle involved in the accident. It doesn’t cover the driver.
Personal Injury Car insurance, also known as PIP (Personal Injury Protection), is for the driver of the vehicle. It covers the driver in the event of an accident and pays for his or her medical bills and the cost of auto repair.
Individuals are advised to purchase Personal Injury Car Insurance alongside their car insurance. This is to ensure that you as the driver are covered in the event that you are involved in an accident and may run into financial loss as a result of not working
Voluntary Accident Insurance Companies
- First Energy
- BCA Benefits Group
- Coremark
- GBS Benefits
- Insuremonkey
- Lincoln Financial Group
- National Enrollment Partners (NEP)
- National Enrollment Services (NES)
- SAP Voluntary Benefits
- Sometra
- The Hartford
- Towne Benefits
- Great West Life
- Prudential Financial
- Chubb
- New York Life
- Trustmark Benefits
Conclusion
In addition to the different kinds of insurance, especially car insurance and health insurance, accident insurance should be bought. It gives the insured extra protection and provides more funds to cover the expenses of the insured’s treatment and the repair of the vehicle in the case of car accidents.
Accident insurance works like every other type of insurance. You have to pay a premium annually or monthly and the amount paid is influenced by the type of sub-accident insurance that you are buying for.
There are accidents that accident insurance doesn’t cover. These accidents are stated in the insurance policy. Therefore, before buying insurance, read through the policy thoroughly. Know what accidents are covered and the claim on each accident. Much more than knowing all these, payment of your premium on time is very important.
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Injury Insurance Frequently Asked Questions
Will my health insurance cover medical bills from a car accident?
Yes, health insurance covers the medical bills incurred from a car accident, regardless of who is at fault.
What kind of injury does accident insurance cover?
Accident insurance covers injuries, hospital and rehabilitation treatment, and medical treatments.
What is Accident Insurance?
Accident Insurance is insurance that covers the insured when involved in an accident that results in an injury.
What is covered under Personal Injury Insurance?
Personal injury insurance covers your medical expenses when you are involved in an accident. Medical expenses like ambulance bills, emergency room charges, follow-up medical visits, prescriptions, etc.
What does worker’s compensation cover?
Worker’s compensation covers death benefits, disability benefits, compensation for lost wages, medical expenses, and lawsuits of employees who get sick or injured at work.
