What does Personal Accident and Sickness Insurance Cover?

What does Personal Accident and Sickness Insurance Cover? Thumbnail Image

Personal Accident and Sickness cover is essential for protecting your Income.

For many of us, time away from work as a result of sickness or accident is simply not an option. However, when asked the question “Would you be able to keep a roof over your head if you couldn’t work due to ill health?” Many Australians wrongly adopt the “it will never happen to me” mentality. But when your livelihood depends on your physical wellbeing is it really worth leaving to chance?

Personal Accident and Sickness (PAS) cover is designed to protect your income should the unfortunate instant occur where an injury or sickness prevents you from returning to work. This allows you to keep up with your essential bills and financial commitments, giving you peace of mind and most importantly, allowing you to concentrate on getting better.

What does Personal Accident and Sickness Cover?

Personal Accident and Sickness insurance provides cover as a portion of the insured person’s income (up to 85% of weekly earnings) if they are unable to work due to a covered event arising from a bodily injury or sickness.

For example, if you were to break your arm in a car accident and this injury prevented you from returning to work, you would be entitled to a weekly benefit consistent with the scope of cover you selected.

Depending on your needs, most policies allow you to choose either accident only or accident and illness cover combined. Some policies also offer the option of lump sum payments (capital benefit) for death by accident, certain permanent partial disablement, temporary total disablement and/or temporary partial disablement.

Despite Personal Accident and Sickness cover benefiting most people who work to earn a living, it is particularly valuable for sole-traders, contractors and small-business owners. This is because in most states of Australia, individuals and sole traders cannot purchase Workers Compensation Insurance making a Personal Accident and Sickness policy essential to insure their most valuable asset… themselves.

What is generally NOT covered by Personal Accident and Sickness Insurance?

As a rule of thumb*, most insurers do not extend cover to injury or sickness which occurs as a result of:

  • Pre-existing condition/s
  • Pregnancy and childbirth
  • Acts which are Intentional, criminal or otherwise deliberately caused by you
  • Being under the Influence of alcohol or drugs
  • Participating in professional sports
  • Acts of war and terrorism

Who can benefit from Personal Accident and Sickness cover?

Generally any person, who works, be it self-employed or an employee would benefit from a Personal Accident and Sickness policy. If you know that your livelihood depends on your wellbeing and a prolonged period of time will have a direct impact on your income, affect your savings, family and lifestyle you have an exposure.

  • Employees
  • Small Business Owners
  • Sole Traders
  • Contract Workers
  • Part time workers
  • Those who do not qualify for Income Protection Insurance

What Now?

Need cover to protect your income today? Cerberos can offer comprehensive Personal Accident and Sickness cover which you can bind, purchase and receive full policy documentation online within minutes. Customise your level of cover by choosing from a range of policy options to tailor your cover to suit your lifestyle. Choose to pay in full or via monthly instalments. Get started today!

If you have any further questions or you would like assistance in assessing your Personal Accident and Sickness insurance needs please be sure to contact one of our insurance experts.

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