Personal Accident Insurance in Malaysia – How much do you need one?


With so many insurance packages to choose from, which ones would suit you best? Car insurance is required by law but what about personal accident insurance? Do you actually need it and if you do, how crucial is this?

Understanding personal accident insurance

First, you should be aware of what personal accident insurance is. Make no mistake about this as a lot of Malaysians are unaware of its importance. As the name implies, this is a protection plan that covers you in case any unfortunate events happen to you like accidents and such. With personal accident insurance, you get peace of mind and some form of security that will help you and your family members. However, it must be noted that not all personal accident insurances are the same while some have exclusions that the policyholder is not aware of.

Getting to the details of the policy

The coverage of the policy varies among the companies. Some do not provide coverage for cases like death during childbirth and certain types of accidents. Hence, you need to read your policy properly and ensure that you have the best option available. One thing for sure, personal accident insurance is a necessity. If you trace back to your past and identify times when you had an accident (minor or major), you can pretty much identify how much you need one. Whether you need it or not, accidents are incidents that we cannot foresee and could happen anytime.

  • Unpredictability – Accidents can happen at the most unexpected moments. You could be walking on a pavement and trip or a building might collapse. You could suffer a cut when cooking at home or met with an accident while traveling. This policy ensures that you have some form of financial guarantee, just in case.
  • Insufficient coverage – Your employer would mostly provide you with some form of personal accident coverage but that would usually be basic and won’t be enough. Getting your own personal accident coverage means you can dictate what you need and how much you can afford.
  • Dependence on your emergency fund – You might have an emergency fund for such incidents but it might not be enough to cover your expenses and commitments for a long time. If you are unable to work, then you need additional cash to get through that duration.

What does it cover?

Generally, this policy will give you a cash payout in the event of death of total permanent disability. Depending on the insurance company you are buying the policy from, they vary in terms of how much the holder will get. This is also dependent on the amount you are paying every month. What makes it important here is that the policy will provide you with some form of financial assistance (for your family) if you are unable to provide for them.


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