Comparison of Accidental Insurance


Comparison of Accidental Insurance

Accidents are unpredictable, and even those who are in good health may encounter them. In 2022 alone, there were as many as 15,107 traffic accidents in Hong Kong, with an average of over 40 accidents per day.

Bowtie understands that there are many questions regarding accidental insurance. What qualifies as an “accident”? What is the difference between accidental insurance and medical insurance? How to evaluate which accidental insurance is better? This time, Bowtie will share some basic knowledge and precautions about accidental insurance with everyone!

1. Pay attention to age and occupational restrictions

Bowtie: Can anyone buy accidental insurance?

Insurance Product Research Department: Most insurance companies on the market have age restrictions for purchasing accidental insurance, with most products allowing individuals between the ages of 18 and 60 to purchase. Some companies may lower the minimum age to 15 or raise the maximum age to 70.

Some companies do not have age restrictions for purchasing accidental insurance, but they will adjust the coverage and coverage amount for different age groups, so older adults and children should pay attention to this.

Accidental insurance does not cover illnesses, so the underwriting process is relatively simple. Some insurance companies do not even require the insured to provide their health information. 

However, the insured’s occupation is a factor that insurance companies consider, as certain professions may have higher risks. Therefore, most companies will decide whether to approve the application based on the applicant’s occupation.

Most companies have a list of “excluded occupations.” The most common professions include professional drivers, construction workers, high-altitude workers, athletes, jockeys, and others. Some companies even do not provide coverage for government disciplinary forces.

Bowtie Touchwood
Issue Ageage 2 – age 55
Period of Cover1 year – Annual renewal up to age 60 (non-guaranteed)
Occupation RestrictionBowtie covers more than 700 types of occupations and supports high-risk professionals.
Learn about it

2. Does not necessarily include hospitalization medical coverage

Bowtie: Does accidental insurance always include bone-setting and medical coverage?

Insurance Product Research Department: First of all, it is important to understand that accidental insurance on the market can be roughly divided into three categories:

Comprehensive Accident Insurance (Death + Disability + Medical + Hospital Cash Allowance)Accident Insurance that reimburses the actual medical costAccident Insurance that provides a lump-sum compensation
Lump-sum death or disability compensation$$$$ / X$$$
Actual medical reimbursement$$$$$ / X
  • $ / XLess compensation or may not provide relevant compensation
  • $$$More compensation
  • $ Less compensation

Based on market data, most companies provide “comprehensive” accidental insurance, which offers lump-sum compensation for injuries and death, as well as basic bone-setting and physical therapy coverage. However, some companies may only provide compensation of HK$100/day or even exclude outpatient treatment.

In terms of hospitalization coverage, some companies provide daily allowances ranging from HK$400 to HK$2,000 per day. 

Accidental insurance policies that focus on medical coverage will provide “actual medical reimbursement” for items such as check-ups and surgeries.

On the other hand, some companies specialize in lump-sum compensation for death or serious injuries but do not cover hospitalization, bone-setting, outpatient treatment, and other medical expenses.

Overall, we believe that “medical coverage” is an important factor to consider when purchasing accidental insurance, as most accidents require long-term treatment and rehabilitation care. Although the chances of death or disability from an accident are relatively small, most cases require long-term treatment and rehabilitation care.

Bowtie Touchwood (reimbursing actual medical cost)

Lump-sum death or disability compensation$
Actual medical reimbursement (Includes physiotherapy, spinal treatment, traditional Chinese medicine bone-setting, outpatient treatment, hospitalization treatment, specified diagnostic imaging tests, and psychiatric treatment)$$$ (annual Benefit Limit is HK$420k)

3. May not provide coverage for accidents outside of Hong Kong

Bowtie: Does accidental insurance provide coverage worldwide?

Insurance Product Research Department: Do not assume all accidental insurance will provide coverage all over the world. Some companies specify which countries are covered, while others may specify Southeast Asia or Europe. Most companies do not specify the coverage area in their policy terms, so it is important to ask before purchasing.

4. Pay attention to exclusions

Bowtie: What are common exclusions?

Insurance Product Research Department: In addition to illnesses, common exclusions include suicide, participation in criminal activities, wars, riots, and military service. It is worth noting that most accidental insurance policies do not provide coverage for traveling in the sky using tools or equipment other than air flight as a tourist. This means that if you travel by private plane, you may not be covered.

5. Understanding premium calculation methods

Bowtie: How is coverage and premium calculated?

Insurance Product Research Department: There are various methods for calculating premiums for accidental insurance on the market. Some companies determine premiums based on age groups, such as one price for ages 10 to 17 and another for ages 18 to 40.

Some companies determine premiums based on the coverage amount, meaning that the higher the premium, the higher the coverage. Some companies use complex formulas to calculate the price based on risk factors such as age and occupation.

Bowtie Touchwood -Monthly Premium
Men (Age 30)HK$62
Women (Age 30)HK$48

Which accidental insurance is better? Comparison of the four plans.

Which accidental insurance is better? In fact, the existing accidental insurance policies on the market differ in terms of premiums, benefit limits, and coverage. 

When comparing policies, it is recommended to carefully read the terms and details of each plan, and select a policy that is suitable, cost-effective, and meets your needs.

The following table provides a comparison of Bowtie Touchwood and accidental insurance policies from three other insurance companies for reference only:

Bowtie TouchwoodCompany ZCompany PCompany F
Monthly PremiumsHK$62👑HK$158HK$142HK$167
Benefit LimitHKHK$420,000👑HK$30,000HK$20,000HK$40,000

Compassionate death benefit

Area of CoverageWorldwide*WorldwideWorldwideWorldwide
Bone Setting
Spinal treatment 
Psychiatric Treatment
  • *Psychiatric treatment must performed in Hong Kong
  • Remarks: assuming a 35 year old male is getting insured.
Where can you find comprehensive accidental insurance? Bowtie Touchwood covers all types of accidents, big or small!

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Next article - Accidental Insurance vs. Sports Insurance
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