IS A PERSONAL ACCIDENT (PA) POLICY NECESSARY?

❓Question:

If you already have Life, Critical Illness (CI) and Health Insurances (LIVE), do you still need a Personal Accident (PA) policy? Isn’t LIVE enough?

You can also watch it here, to know the answer: 👇 





✅Answer:

That’s a great question — and one that reveals a common misunderstanding about insurance coverage.

While LIVE (Life, Critical Illness, and Health Insurance) plans are crucial for comprehensive protection, they do not cover all accidental outcomes — especially partial disabilities or injuries. This is exactly where a Personal Accident (PA) plan becomes essential.

Let’s explore why:


🔍 1. PA Covers What LIVE Doesn’t:

PA insurance offers specific payouts for accidental injuries and losses, many of which would not be claimable under traditional LIVE policies.

  • For example, loss of sight in one eye due to an accident is payable under a PA policy. But under life insurance, the Total Permanent Disability (TPD) benefit only pays if there is permanent and total loss of sight in both eyes—regardless of whether it's due to illness or accident.

  • Likewise, if someone loses one limb in an accident, PA will pay. However, both TPD in Life Insurance and CI coverage generally require the loss of or loss of use of more than one limb to be eligible for a payout.

✅ So, without a PA, a person who loses just one limb in an accident—despite owning life, CI, and medical plans—may receive nothing!

  • In contrast, a comprehensive PA plan can even compensate for the loss of a finger or toe, including partial loss or loss of use, based on the assigned value of the body part.


💸 2. Low Cost, High Value:

PA plans are typically very affordable — a small premium can offer meaningful compensation for various accidental injuries, including death, disability and even hospitalisation cash benefits.


🛡️ 3. It Complements, Not Replaces LIVE:

Let’s be clear:

  • Life Insurance covers death and TPD

  • Critical Illness Insurance pays out upon diagnosis of specific serious illnesses

  • Medical Insurance pays for treatment and hospitalisation

  • PA Insurance fills the gap for accidental injuries and partial and permanent disabilities


Each plays a role—and PA ensures you’re protected in ways the others can’t.


🔚 Conclusion:

It’s not a matter of choosing between LIVE vs. PA—they are meant to work together. Without PA, you’re exposed to financial risks from accidents that don’t meet the strict definitions of claims in life or CI policies.

👉 And for such a low cost, not having PA is a risk that’s simply not worth taking.

Location: Malaysia

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