Breaking down personal accident coverage in Philippine car insurance

What is Personal Accident coverage?

While the name of this particular coverage is pretty self-explanatory, i.e., an insurance policy that offers financial protection in the event of a personal accident. The fact is that there are many more layers to it.

In the Philippines, Personal Accident coverage offers protection to policyholders, supporting them financially and helping them compensate for injuries, disability, and even death. It covers the medical and hospital expenses, all of which were incurred due to a car accident.

Unlike the basic car insurance policy, which mainly concentrates on damage to the third party or vehicle, PA focuses on the people - the driver and passengers.

Key highlights -

• Offers financial support in the event of an accident that results in injuries or fatalities.
• It covers emergency costs, such as hospital bills and funeral expenses.
• During an unpredictable and unfortunate event, it offers peace of mind to the policyholder.

Why is Personal Accident coverage essential for Filipino car owners?

If the Philippines Statistics Authority is to be believed, thousands of road-related injuries and deaths are recorded in the Philippines every year. Fueling these numbers is the country’s busy road network (one of the busiest in the world) that increases the risk of road accidents, and not to forget the poor road sense of many Filipinos. All these factors make adequate personal protection crucial, along with quick vehicle repair facilities.

So, whether you are driving on EDSA (Epifanio de los Santos Avenue) in Metro Manila, which is notorious for its heavy traffic, a provincial highway or rural terrain, having PA coverage means you are never alone in case of an accident. It will serve as a financial cushion, ensuring that medical care is never delayed, even when personal funds are limited.

Personal Accident coverage - Inclusions and exclusions

Let us first discuss the common inclusions of PA coverage:

• Medical expenses - This coverage covers hospital bills, including emergency room fees, diagnostic exams and lab tests, operation fees, medical bills, follow-up consultations, and rehabilitation services.
• Disability benefits - If an accident results in temporary or permanent disability, the PA coverage provides compensation to the insured in the form of lost income, rehabilitation costs, and other related expenses.
• Accidental death beneficiaries - Unfortunately, if the insured succumbs to injuries from a road accident, PA offers their nominated beneficiaries a lump sum payment.
• Other benefits - Some insurance providers' PA coverage also covers transportation expenses, accidental dismemberment benefits, and even home modification costs.

Time to move on to the exclusions of PA coverage -

• Death, disablement, and bodily injury due to riots, strikes, war, terrorism, and other such disturbances.
• Death, disablement, and bodily injury due to suicide, attempted suicide, alcoholism, diseases, intentional self-injury, and other causes.
• Death, disablement, and bodily injury due to acts of god, like earthquakes, volcanic eruptions, etc.
• Death, disablement, and bodily injury due to engagement in an illegal occupation or performing an unlawful act.
• Death, disablement, and bodily injury due to racing or racing-related activities.

Please note that the PA coverage inclusions and exclusions vary by insurance company, so be sure to read your insurance policy thoroughly for details.

Who is covered under Personal Accident coverage?

The coverage offered by PA insurance depends on the insurance policy and the provider. However, most policies cover the policyholder and passengers present at the time of the accident.

Common misconception about Personal Accident coverage

There are several misconceptions about Personal Accident coverage among Filipino car owners. Let’s put an end to a few of them today.

• CTPL and PA are the same - No, they are not. The two coverages differ significantly from each other (see the table below for a detailed explanation).
• PA coverage is quite expensive - Not at all, it all depends on the coverage you ask for.
• It is only for drivers - No, in fact, most plans cover passengers as well.

CTPL vs. Personal Accident coverage

Let’s check out how the CTPL is different from PA coverage -

How much does Personal Accident coverage cost?

The cost of Personal Accident coverage in the Philippines varies widely. It is generally influenced by factors like -

• Coverage amount - The Higher the coverage, the higher the premium.
• Insurance provider - Different providers offer different plans and rates.
• Policyholder’s details - Some providers, when determining the premium, take into consideration the applicant’s age and health. The driving record is also taken into account.

Let us now have a look at the cost of PA by a few insurance providers -

Things to remember when choosing a Personal Accident coverage

When choosing personal accident coverage for your car, keep the following things in mind -

• Make sure the policy covers both the driver and the passenger.
• Compare policies based on coverage amount & cost.
• Read the fine print, know the inclusions and exclusions.
• Ask for a discount on bundling different coverage options, like PA and Acts of God.
• Request additional benefits, such as loss of pay or daily hospital benefits.

Insurance providers offering Personal Accident coverage

While several insurance providers in the country offer personal accident coverage to their clients, here are a few options (in no specific order) for you to consider -

• AXA Philippines: Offers up to PHP 100,000 PA coverage along with PHP 5,000 per day daily in-hospital benefits. Additionally, it provides free access to 24/7 emergency services.
• Malayan Insurance - Its AutoMaster offers accident and medical coverage to the driver and passengers required in the event of a road mishap.
• Pioneer Insurance is known for its quick claims process, easy PA application, and no upper age limit for PA coverage (which covers individuals above 66 years).
• Cocogen offers Personal Accident coverage under the title ‘All-In PA Protect’, providing 24-hour protection to the insured against accidents sustained anywhere in the world. It is offered in three sets: Economy, Deluxe and Premiere, varying in the limit of coverage and premium.

Bottom line

Most car insurance applicants in the country are aware of the mandatory CTPL, comprehensive insurance, and coverage for Acts of God. The Personal Accident (PA) Coverage, on the other hand, is often overlooked and not much discussed. The fact is, PA coverage is one of the most underrated but powerful protections offered by car insurance providers. All it takes are a few additional pesos, and you’ll gain protection for yourself and the passengers, in case life takes an unexpected turn on the road.

We’d say, do not wait for an accident to realise the importance of Personal Accident Insurance. Go get in touch with your insurance provider today, get details about PA coverage, and make it a part of your car insurance policy.

FAQs

Q1. Is personal accident coverage mandatory for Filipino car owners?
Ans. As per law, CTPL insurance is mandatory for Filipino car owners. As for personal accident coverage, it is not compulsory but highly recommended for the additional protection it offers.

Q2. Is it possible to opt for personal accident cover without comprehensive insurance?
Ans. Yes. Many car insurance providers offer personal accident coverage as a standalone or add-on over basic insurance.

Q3. Will personal accident coverage apply if I am not the one driving?
Ans. In the Philippines, personal accident coverage generally applies when the insured is involved in an accident, regardless of whether they are driving at the time of the accident.

Q4. How many passengers are covered under personal accident coverage?
Ans. The number of passengers covered under personal accident coverage depends on the policy terms. Some policies cover as many as five passengers; therefore, it is advised to clarify the details with the provider.

Q5. What documents are required to file a claim?
Ans. When filling an insurance claim, you need the following documents: a duly accomplished claim form, a police report, a medical report, and other supporting documents required by the insurer.

Q6. Is it possible to claim both CTPL and personal accident coverage?
Ans. In the event of an accident, the insured can claim benefits of both CTPL and personal accident insurance. While the former covers third-party bodily injury/death, the latter covers bodily injury/death and medical expenses of the insured and passengers.

Q7. What are the common exclusions in personal accident coverage?
Ans. Drunk driving, racing, self-inflicted injuries, and non-accidental injuries are not covered under personal accident coverage.

Q8. Is it possible to increase the personal accident coverage limit after buying the insurance policy?
Ans. Usually, insurance companies allow clients to make revisions to their policies; these revisions can be made at the time of renewal or during the policy term.