Types of Accident Insurance


Types of Accident Insurance

According to the "2022 Hong Kong Road Traffic Accident Statistics," there were already 9,551 traffic accidents in the first eight months alone, with more than 50 of them being fatal accidents. If other unreported accidents, such as home accidents or sports injuries, are included, the number of casualties due to accidents each year is undoubtedly higher.

Accidents are difficult to predict, so having accident insurance can provide protection for oneself and one’s family. Let’s learn about the definition and types of accident insurance!

Accident Insurance Helps Reduce the Impact of Accidents on Yourself and Your Family

Accidents are unforeseen events, and no one can predict when they will happen or what impact they will cause on us. What we can do is manage the risks beforehand and minimize the impact on ourselves or our families when accidents occur.

One of the simplest and most effective ways to do so is to purchase accident insurance. As we have mentioned before, the premium cost is related to the likelihood and severity of the risk occurring.

Compared to the probability of getting sick, the likelihood of having an accident is lower, so the premium for accident insurance is not expensive. 

However, in the event of an accident, the consequences can be either minor or severe and can lead to serious consequences at any time. Therefore, this type of risk is very suitable for transferring to an insurance company through the purchase of insurance.

Types of Accident Insurance

Accident insurance is generally divided into accidental death and Bone fracture insurance, as well as accidental medical compensation insurance.

1. Accidental Death and Bone fracture Insurance

If the insured person suffers permanent disability or death due to an accident, they can receive a one-time compensation. This type of insurance is more suitable for families who are the breadwinners and are worried about their ability to work or make a living due to accidents.

The insurance company will specify on the policy the amount of compensation that can be obtained for different degrees of injury (usually shown as a percentage of the insured amount). 

Therefore, severe disabilities such as lose of limbs (one or more limbs), loss of vision, or severe burns, as well as relatively minor injuries such as the loss of a joint in a hand or foot, all have the opportunity to receive different amounts of compensation.

The table below shows the compensation table of a certain insurance company in Hong Kong for reference.

InjuryClaim ratio of the Sum assured insured
Loss of life100%
Permanent and complete loss of vision in both eyes 100%
Permanent and complete loss of vision in one eye100%
Loss of both limbs or permanent and complete loss of their function 100%
Loss of one limb or permanent and complete loss of its function100%
Loss of speech and hearing100%
Permanent and incurable mental illness
Permanent and complete deafness
  • Both ears 
  • One ear 
Loss of speech ability 50%
Permanent and complete loss of the crystalline lens of one eye50%
Loss of any four fingers and thumb or permanent and complete loss of their function
  • Right Hand
  • Left Hand
Loss of any four fingers or permanent and complete loss of their function
  • Right Hand
  • Left Hand
Loss of any thumb or permanent and complete loss of its function
  • Right hand two joints/one joint 30% / 15%
30% / 15%
  1. Left hand two joints/one joint 20% / 10%
20% / 10%
Loss of any finger or permanent and complete loss of its function
  1. Right hand three joints/two joints/one joint 
10% / 7.5% / 5%
  • Left hand three joints/two joints/one joint
7.5% / 5% / 2%
Loss of any toe or permanent and complete loss of its function
  • All toes of one foot 
  • Big toe’s two joints
  • Big toe’s one joints
Fracture or dislocation of the leg bone or knee that cannot be restored10%
Shortening one leg by 5 cm or more7.50%
Third-degree burns
Percentage of the body burned
  • Head not less than 8%
Not less than 5% but less than 8%75%
Not less than 2% but less than 5% 50%
  • Body not less than 20%
Not less than 15% but less than 20%75%
Not less than 10% but less than 15%50%

2. Accidental Medical Insurance and Coverage

Another type of accident insurance is accidental medical insurance. Simply put, this insurance will reimburse the medical expenses incurred due to accidents, including outpatient visits (registered GP or physiotherapy, chiropractic or bone-setting, etc.). 

Some insurance companies extend coverage to hospitalization or surgery required due to accidents, as well as psychiatric treatment.

Next article - Accident insurance coverage
What is provided under accident insurance? Let's see the coverage scope!
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