Personal Accident Insurance

If you get injured, personal accident insurance can help to ease your financial stress. But there are more comprehensive plans that'll also cover you if you get sick.

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What you need to know

  • Personal accident is designed to replace your income if you are temporarily unable to work after an accident.
  • There are a few different types of personal accident insurance, and this cover can be bought as a standalone policy.
  • It has similarities to income protection insurance but it only covers you for accidental injuries, as opposed to if you get sick or injured.

What is personal accident insurance?


Personal accident insurance, sometimes called personal injury insurance, is an insurance policy that promises to pay a financial benefit if you're injured in an accident.

It's designed to ease some of the financial stress that can accompany a serious accident, especially if you're out of work and facing expensive medical bills, so you can concentrate on recovery.

How does personal accident insurance work?

You pay a monthly fee and, in exchange, your insurance company promises to pay a financial benefit if you ever suffer a serious injury.

If you buy standalone personal accident insurance, you'll likely get the financial benefit as a lump-sum payment upon injury. For example, you may receive $3,000 if you break your arm.

However, if you buy personal accident insurance as part of a wider income protection policy, you'll receive a monthly payment that is designed to replace a portion of your typical income while you're unable to work. Learn about the differences between personal accident cover and income protection.

When you buy your policy, you also set a waiting period and a benefit period.

Clock

Waiting period

This is how long you have to wait after your injury before you can begin claiming. For example, you might set a waiting period as short as two weeks or as long as three months.

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Benefit period

This is the length of time you can claim the benefit for. Usually, the maximum length you can claim monthly benefits is either two years or five years, depending on the insurer.

Compare personal accident insurance in Australia

BrandBenefit AmountBenefit PeriodWaiting PeriodAge
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Income Protection

Accident Benefit Option

$10,000Up to 5 years14 or 28 days18-60Get quote
insuranceline logo

Income Protection

Accident Benefit Option

$10,000Up to 5 years14 or 28 days18-60Get quote
Suncorp life insurance logo

Income Protection

Accident Benefit Option

$10,000Up to 5 years14 or 28 days18-60Get quote
Asteron logo

Income Protection

Accident Only Cover

Not mentionedUp to 5 years14, 30, 60, 90 days, 1 year or 2 years18-62More info
Guardian Life Insurance Logo

Funeral Insurance

Accidental Serious Injury Insurance

$45,000One time payment12 months18-69More info

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What does personal accident insurance cover?

Standalone personal accident insurance typically covers a specific list of injuries, including the following:

  • Fractures
  • Dislocations
  • Loss of limbs
  • Burns
  • Some illness
  • Loss of sight

If you buy personal accident insurance as part of a wider income protection package, you may also be covered for illnesses that put you out of work, such as the following:

  • Cancer
  • Paralysis
  • Stroke
  • Demensia
  • Heart attack

Remember, specific benefits will vary between insurers, so be sure to read the product disclosure statement (PDS) carefully before buying personal accident insurance.

Types of personal accident insurance

There are several types of personal accident insurance. You can buy cover as a standalone product or as part of a larger income protection package. If you buy personal injury insurance as part of a wider policy, you may also receive a financial benefit for illness rather than just for injury.

The table below shows the four types of personal accident insurance, what's typically covered under each policy and the type of payment you'd receive if you ever had to claim.

Type of coverWhat's covered?Payout type
Standalone personal accident insuranceSpecific injuries due to accidents – e.g. fractures, burns and dislocations.Lump sum
TPD insuranceInjuries and illnesses that leave you totally and permanently disabled.Lump sum
Accident-only income protectionInjuries that put you out of work temporarily.Monthly income replacement
Income protectionInjuries and illnesses that put you out of work temporarily.Monthly income replacement

Is personal accident insurance the same as income protection?

No. Personal accident insurance pays you a lump sum if you're ever seriously injured. You might break your arm and be able to return to work the next day, but you'd still get your benefit.

Income protection insurance pays you a monthly benefit if you're ever too sick or injured to work. For example, if you were diagnosed with cancer and had to take three months off, you'd be able to claim a portion of your typical income as your benefit.

How does age affect personal accident insurance?

  • All personal accident insurance policies have minimum and maximum age requirements.
  • Some insurers will reduce the value of your benefit as you get older.
  • Your premiums will likely get more expensive as you grow older.

What affects the cost of personal accident insurance?

If you buy standalone personal accident insurance, you'll typically pay a set price depending on your age. For example, you may pay $20 per month up until the age of 65. After that, your premiums may increase at a steady rate for every subsequent year.

However, if you buy an income protection policy that includes cover for illness as well as injury, your premiums will be calculated taking a range of different factors into consideration, including the following:

  • Your age
  • Your overall health
  • Waiting periods
  • Your income
  • Benefit amount

Frequently asked questions

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16 Responses

    Default Gravatar
    KimSeptember 17, 2021

    My 15-year-old son is going to be on worksites with his dad and also needs to be covered by personal accident insurance. Can we get coverage for him or does my husband’s policy cover our son too because of his age?

      Avatarfinder Customer Care
      JamesSeptember 22, 2021Staff

      Hi Kim,

      A good starting point may be to ask your husband to get in touch with his insurance provider to confirm whether or not children are covered by the terms of his policy. If not, you may need to look for specialist cover.

      Regards,
      James

    Default Gravatar
    BobbyMarch 16, 2019

    Hi, I’m looking at getting some work experience at a local mechanic workshop. As I am only 15 years old, can I get insurance for personal accident and liability insurance? I have been told that I am not covered under their insurance.
    Thanks.

      Avatarfinder Customer Care
      MaiMarch 17, 2019Staff

      Hi Bobby,

      Thank you for contacting Finder.

      I’m afraid you may not be eligible for getting personal accident insurance. According to our review, the age of entry limitations is from 16-18 years old depending on the type of personal accident insurance.

      For liability insurance, you can try getting a quote online or request a callback from a broker.

      Hope this helps! 😊

      Let us know if you need further assistance and we’ll be happy to help.

      Kind Regards,
      Mai

    Default Gravatar
    WendyFebruary 28, 2019

    I am looking for insurance cover, accident only and no income protection. For a social walking group in case someone gets hurt in our activity time. Not looking for big premiums and looking for cover for about 50 people.

      Avatarfinder Customer Care
      JeniMarch 2, 2019Staff

      Hi Wendy,

      Thank you for getting in touch with Finder.

      On this page you’re looking at, kindly enter all details asked and a broker will get in touch to help you find the accident only insurance that suits your needs.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    violaFebruary 12, 2019

    His is 7 days excess fee applicable to all injuries that are suffered by contractors irrespective of cause, and the sports injuries clause 28 days excess fee? is this under PA policy nation wide?

      Avatarfinder Customer Care
      JohnFebruary 13, 2019Staff

      Hi Viola,

      Thank you for reaching out to finder.

      The Insurance Council of Australia regulates and provides guidelines to insurance companies on acceptable policy coverage for it’s users. You may want to reach out to them if you feel that there is more to what your provider is covering for you. As well, it would also be advisable to revisit your contract with your insurance provider to check on this clause coverage as well as what policies it provides. Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    PeterSeptember 9, 2017

    I need an accident insurance policy for $500,000. I am 74 nb.

      Avatarfinder Customer Care
      JhezSeptember 9, 2017Staff

      Hi Peter,

      Thanks for your comment.

      You are already on the right page. To get a quote for accident insurance, kindly fill out the quote engine above and click the “Get quotes” button. Different quotes from different insurance brands will show for you to compare.

      Please make sure though to read the eligibility criteria, features and details of the policy, as well as the relevant Product Disclosure Statement PDS/T&C’s of the policy before making a decision and consider whether the product is right for you. If necessary, speak to the insurance brand to verify any details

      Regards,
      Jhezelyn

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