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One of the most important coverage you should have is Personal Accidental Coverage. Not only because it’s one of the most affordable coverage, the possibility of you claiming from a personal accidental policy is much higher than say, natural death or a critical illness claim. Personal Accidental coverage protects you from accidental risk, which means any injury or death caused by accident, you can make a claim, for example, losing a leg or accidentally cutting off a finger while preparing your dinner. This is not to be mistaken with Total Permanent Disability (TPD), whereby the term TPD usually is defined as:

(a) becomes total and permanent and such that the Life Assured is incapable of ever engaging in any work, occupation or profession in the future to earn or obtain any wages, remuneration or profit; or

(b) is deemed to be caused by any of the following:

(i) total and irrecoverable loss of sight of both eyes; or
(ii) loss of use of two limbs at or above the wrist or ankle; or
(iii) total and irrecoverable loss of sight of one eye and loss of use of one limb at or above the wrist or ankle.

(c) Or by unable to fulfil any 3 of the following activities:-
i) Transfer
ii) Mobility
iii) Continence
iv) Dressing
v) Bathing/Washing
vi) Eating

From the definitions above, you can see that it’s not that easy to comply with TPD’s requirements. If you happen to lost only one leg in a fatal accident, your TPD policy will payout literally RM 0.00 sen. And the odds of getting into an accident are in comparison, very much higher than any other risk that we might encounter every day. And there’s one more reason why you must have a Personal Accident benefit in your risk management portfolio- it’s dirt cheap, and the insurance charges rate is the same from cradle to grave (there’s a entry limit though, which is usually around 60 years old).
 
Here’s a typical Personal Accident rate.

A typical Personal Accident premium rate offered by Malaysia insurance companies.

As, you can see from the rates above, a RM 300,000 Personal Accident coverage with Weekly Benefit cost only about RM 405 a year, that’s RM 33.75 per month, and it’s renewable at the same rate as long as you can afford it. So you should look up into your dusty policy documents to check if you have a Personal Accident Coverage either attached as a rider or as a stand-alone plan. Consider checking with the company you are working for to see if they’ve a Group Personal Accident Coverage for staff. Companies should also have given you PERKESO benefits, but the limit for PERKESO is capped to a monthly salary of RM 3,000 as at the time of this writing. To check the benefits covered under PERKSO, go to www.perkeso.gov.my

For a 30 years-old working adult, I would suggest a minimum of RM 500,000 Personal Accidental Coverage. If you are married, consider getting a Family Accidental Coverage for your spouse and your children since it’s generally cheaper this way.

Some credit cards even give free Personal Accidental coverage for a year at no cost at all!

To add Personal Accidental coverage into your risk management portfolio, check out www.insuranceonline.my.

In the next post, I’ll cover the next type of insurance that you should consider to be part of your fundamental risk management strategy- Medical & Hospitalization Insurance.

• Comprehensiveness of Coverage
• How Much Insurance Should You Buy?
• Malaysia Medical & Hospitalization Insurance Explained
• The Malaysia Insurance Planning Guide Part 1: Needs or Wants
• Protect or Accumulate?
• Malaysia Endowment Insurance
• Accidents
• Malaysia Critical Illness Insurance Coverage