PGI Personal Accident Insurance — Questions and Answers
Question 1: What does personal accident (PA) insurance cover in Singapore?
- Only medical expenses
- Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit (Correct answer)
- Only workplace accidents
- Only road accidents
Correct answer: Death, permanent disability, and temporary disability resulting from accidents, typically paying a lump sum or weekly benefit
PA insurance provides financial protection against accidents resulting in death, permanent total or partial disability, and temporary disability. Benefits are typically paid as lump sums or weekly income replacement.
Question 2: How does personal accident insurance differ from health insurance in Singapore?
- They are identical products
- PA covers accidental death and disability only; health insurance covers illness and hospitalisation. PA pays lump sums; health insurance reimburses medical costs (Correct answer)
- PA is more expensive
- Health insurance only covers surgery
Correct answer: PA covers accidental death and disability only; health insurance covers illness and hospitalisation. PA pays lump sums; health insurance reimburses medical costs
PA insurance pays benefits for accident-related outcomes (death, disability) regardless of medical costs. Health insurance reimburses actual medical expenses for both illness and accidents.
Question 3: What is 'accidental death benefit' in a Singapore PA policy?
- Death from any cause
- A lump sum payment to the beneficiary if the insured dies as a direct result of an accident within a specified period (usually 90-365 days) after the accident (Correct answer)
- A monthly pension payment
- Coverage for terminal illness
Correct answer: A lump sum payment to the beneficiary if the insured dies as a direct result of an accident within a specified period (usually 90-365 days) after the accident
The accidental death benefit is a lump sum paid to the nominated beneficiary if the insured dies due to an accident. Death must typically occur within 90-365 days of the accident to qualify.
Question 4: What is 'permanent total disability' (PTD) in Singapore personal accident insurance?
- Any injury requiring hospitalisation
- Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment (Correct answer)
- A temporary disability lasting more than a year
- Loss of one finger
Correct answer: Complete and permanent loss of function of two or more limbs, both eyes, or total inability to engage in any gainful employment
PTD means the insured is permanently unable to perform any gainful employment due to the accident. It typically includes loss of both hands, both feet, sight in both eyes, or any combination.
Question 5: Can a person have multiple personal accident insurance policies in Singapore?
- No, only one PA policy is allowed
- Yes, multiple PA policies can be held and claimed simultaneously as PA benefits are not subject to the indemnity principle (Correct answer)
- Only if from different insurers
- Only with MAS approval
Correct answer: Yes, multiple PA policies can be held and claimed simultaneously as PA benefits are not subject to the indemnity principle
PA insurance pays defined benefits (not reimbursement), so multiple policies can coexist. If you hold three PA policies with SGD 100,000 each, you can claim SGD 300,000 for accidental death.
Question 6: What is the typical exclusion for pre-existing conditions in Singapore PA insurance?
- Pre-existing conditions do not affect PA coverage
- Disabilities or death caused by or contributed to by pre-existing medical conditions may be excluded or subject to limitations (Correct answer)
- Only diabetes is excluded
- Pre-existing conditions are always covered
Correct answer: Disabilities or death caused by or contributed to by pre-existing medical conditions may be excluded or subject to limitations
While PA insurance covers accidents, if a pre-existing condition contributes to the severity of the injury or death (e.g., heart condition worsened by an accident), the claim may be reduced or excluded.
PGI Personal Accident Insurance
What does personal accident (PA) insurance cover in Singapore?