Personal accident insurance, sometimes called personal injury insurance, is an insurance policy that pays you a financial benefit if you're injured in an accident.
It's designed to ease some of the financial stress that can occur after a serious accident – for example, because you're temporarily unable to work or face expensive medical bills.
You pay a monthly fee and, in exchange, your insurance company promises to pay a financial benefit if you ever suffer a serious injury.
If you buy standalone personal accident insurance, you'll likely get the financial benefit as a lump-sum payment upon injury. For example, you may receive $3,000 if you break your arm.
However, if you buy personal accident insurance as part of a wider income protection policy, you'll receive a monthly payment that is designed to replace a portion of your typical income while you're unable to work. Learn about the differences between personal accident cover and income protection.
When you buy your policy, you also set a waiting period and a benefit period.
This is how long you have to wait after your injury before you can begin claiming. For example, you might set a waiting period as short as seven days or as long as two months.
This is the length of time you can claim the benefit for. Usually, the maximum length you can claim monthly benefits is either two years or five years, depending on the insurer.
Standalone personal accident insurance typically covers a specific list of injuries, including the following:
If you buy personal accident insurance as part of a wider income protection package, you may also be covered for illnesses that put you out of work, such as the following:
Remember, specific benefits will vary between insurers, so be sure to read the product disclosure statement (PDS) carefully before buying personal accident insurance.
| Brand | Benefit Amount | Benefit Period | Waiting Period | Age | Price | |
|---|---|---|---|---|---|---|
 Life Insurance Personal Accident Insurance | $25,000 or $50,000 | Differs based on level of cover | None | 55–74 | $6.30 per week | More info |
Price is based on a 55 year old individual with $50,000 coverage.
You pay the same price as buying directly from the life insurer.
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There are several types of personal accident insurance. You can buy cover as a standalone product or as part of a larger income protection package. If you buy personal injury insurance as part of a wider policy, you may also receive a financial benefit for illness rather than just for injury.
The table below shows the four types of personal accident insurance, what's typically covered under each policy and the type of payment you'd receive if you ever had to claim.
| Type of cover | What's covered? | Payout type |
|---|---|---|
| Standalone personal accident insurance | Specific injuries due to accidents – e.g. fractures, burns and dislocations. | Lump sum |
| TPD insurance | Injuries and illnesses that leave you totally and permanently disabled. | Lump sum |
| Accident-only income protection | Injuries that put you out of work temporarily. | Monthly income replacement |
| Income protection | Injuries and illnesses that put you out of work temporarily. | Monthly income replacement |
Personal accident insurance usually (though not always) pays you a lump sum if you're ever seriously injured. You might break your arm and be able to return to work the next day, but you'd still get your benefit.
Income protection insurance pays you a monthly benefit if you're ever too sick or injured to work. For example, if you were diagnosed with cancer and had to take three months off, you'd be able to claim a portion of your typical income as your benefit.
Personal accident insurance vs income protection.
An adviser can help you find cover from trusted life insurance brands.
If you buy standalone personal accident insurance, you'll typically pay a set price depending on your age. For example, you may pay $20 per month up until the age of 65. After that, your premiums may increase at a steady rate for every subsequent year.
However, if you buy an income protection policy that includes cover for illness as well as injury, your premiums will be calculated taking a range of different factors into consideration, including the following:
If you're self-employed, then you should consider accident and sickness insurance. It can protect you in the event that a serious injury prevents you from working.
Learn the benefits of personal accident insurance and how it can provide cover for medical services and payments not included in health insurance.
If you play sports or lead an active life then consider personal accident insurance. You can compare cover from Australian insurers here too.
Can I get personal accident insurance for 1 day to cover using a Segway
Hi Claudia,
Thanks for your inquiry.
It’s a good idea to speak with an insurer directly to see if they’ll offer you cover when using a Segway.
Flip Insurance may be one option to consider – I know they offer on-demand accident cover that includes single-day protection. You can read more about Flip Insurance here.
That’s just one option. It’s a good idea to compare a number of providers and always read the PDS before you settle on the right insurance for your needs.
I hope that helps.
Best,
James
My 15-year-old son is going to be on worksites with his dad and also needs to be covered by personal accident insurance. Can we get coverage for him or does my husband’s policy cover our son too because of his age?
Hi Kim,
A good starting point may be to ask your husband to get in touch with his insurance provider to confirm whether or not children are covered by the terms of his policy. If not, you may need to look for specialist cover.
Regards,
James
Hi, I’m looking at getting some work experience at a local mechanic workshop. As I am only 15 years old, can I get insurance for personal accident and liability insurance? I have been told that I am not covered under their insurance.
Thanks.
Hi Bobby,
Thank you for contacting Finder.
I’m afraid you may not be eligible for getting personal accident insurance. According to our review, the age of entry limitations is from 16-18 years old depending on the type of personal accident insurance.
For liability insurance, you can try getting a quote online or request a callback from a broker.
Hope this helps! 😊
Let us know if you need further assistance and we’ll be happy to help.
Kind Regards,
Mai
I am looking for insurance cover, accident only and no income protection. For a social walking group in case someone gets hurt in our activity time. Not looking for big premiums and looking for cover for about 50 people.
Hi Wendy,
Thank you for getting in touch with Finder.
On this page you’re looking at, kindly enter all details asked and a broker will get in touch to help you find the accident only insurance that suits your needs.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
His is 7 days excess fee applicable to all injuries that are suffered by contractors irrespective of cause, and the sports injuries clause 28 days excess fee? is this under PA policy nation wide?
Hi Viola,
Thank you for reaching out to finder.
The Insurance Council of Australia regulates and provides guidelines to insurance companies on acceptable policy coverage for it’s users. You may want to reach out to them if you feel that there is more to what your provider is covering for you. As well, it would also be advisable to revisit your contract with your insurance provider to check on this clause coverage as well as what policies it provides. Hope this helps!
Cheers,
Reggie