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Personal Accident Insurance in Malaysia – A Beginner’s Guide

July 30, 2012 by KM MoneySaver in Featured, Insurance & Pensions, Popular Guides

Is it worthwhile getting a Personal Accident Insurance policy? What differentiates it from SOCSO and Life Insurance? Read our full guide to see what Personal Accident Insurance is!

What is Personal Accident (PA) Insurance?

Personal Accident (PA) Insurance is an annual policy which provides lump-sum compensation in the event of injuries, disability or death caused solely by violent, accidental, external and visible events. Unlike life insurance (which covers any type of death), PA Insurance is completely policy dependent. It pays a benefit due to death which helps protect loved ones against the inevitable devastating loss of income that will occur if a member dies unexpectedly.

Premiums of PA insurance policies are also generally cheaper than Life Insurance, due to a more restrictive policy. Purchasing PA Insurance is a good way to protect your family and dependents, however, because it does not cover death by natural causes, if such things concern you it might be a good idea to augment it with a Life Insurance policy. PA Insurance can either be taken for yourself or a group policy for your family. 24-hour worldwide coverage is also provided.

I make SOCSO / PERKESO contributions, do I still need Personal Accident Insurance?

The Social Security Organization (SOCSO) or Pertubuhan Keselamatan Sosial (PERKESO) in Malaysia is an organization which provides insurance coverage against job-related injuries and disabilities, workplace accidents, occupational diseases and death. In short, this scheme provides protection to employees who suffer from an an accident or an occupational disease arising out of, and in the course of, his employment. It covers accidents while at work, accidents while travelling, accidents during emergency and diseases caused by nature of work.

One might think that this is enough. However, accidents can happen anywhere and anytime. Assuming that your job-related activities are covered by SOCSO, and even then, payouts such as the disablement benefit and disability pension are limited to under RM3,000 a month. How confident are you that you will remain accident-free elsewhere, or that the sums provided by SOCSO as compensation be enough for your dependents? PA Insurance helps to add to that degree of assurance, no matter the place, time and amount.

For more information on SOCSO contributions and benefits, take a look at our full SOCSO Guide.

Where can I get a PA Insurance policy?

In the past in Malaysia, PA Insurance products were purchased directly from insurance companies, but these days they underwrite policies which are then distributed by the big banks (many of them related companies), Pos Malaysia and even telecommunication companies like Maxis, Digi, Celcom and the Tune Group.

How much does it cost?

The cost of a PA Insurance policy depends on several factors such as the length of coverage, compensation, additional coverage on exclusion, age (premium can rise with age), occupation (Class 3 jobs have a higher risk than Class 1 and 2), what activities you normally do, health history and number of people who benefit.

What should I be aware of?

When you choose a PA Insurance policy, you should be aware of the following things:

Coverage

Ensure the policy gives you what YOU need. Different insurance companies will provide different coverage benefits. PA insurance normally covers the following: accidental death, permanent disablement, temporary total or partial disablement, medical expenses, corrective surgery, hospitalisation benefits and funeral expenses.

As mentioned perviously, PA Insurance is a more restrictive policy than life insurance in which you have to keep a very close eye on the coverage. For example, if the policy states that it covers death and disablement caused by accident, the keyword here is accident. If the death or disablement is not caused by an accident, the policy does not apply.

Exclusions

Besides the coverage, exclusions of the policy are also important. You have to be aware of it as well to avoid dispute in the event of claim for the compensation. Death or injury caused by the following events are usually excluded from the policy: war risks, suicide and insanity, terrorism, self-inflicted injury, influenced by liquor, drugs or narcotics, provoked murder or assault, illness and disease like AIDS, HIV, childbirth, pregnancy or miscarriage, involvement in unlawful activities, hazardous sports, operating or riding a two-wheel motor vehicle.

These exclusions vary among different insurance companies. However, some insurance companies do provide coverage for some of the exclusions mentioned above such as hazardous sports, murder or assault (unprovoked) and terrorism provided that it is not of mass destruction. As expected, the premium must be higher. The larger the area of coverage, the higher you have to pay for the insurance premium.

Scale of benefits and sum insured

Scale of benefits is the amount of compensation payable by the insurance company in the event of injury to or loss of limb, sight or hearing. You have to be clear with the scale of benefits offered under your PA Insurance, as it determines the proportion of compensation based on the loss suffered. For example, the loss of one eye can be fixed at 100% of the insured sum, while another insurance company may only pay 50% of the insured sum, 100% for both eyes. It is best that you compare the scale of benefits offered by different insurance companies.

PA Insurance is a benefit plan which is unlike indemnity policies like motor or fire insurance, where one cannot put a defined value on an individual’s life or loss of body part. The sum insured normally depends on the individual’s annual earnings. As a rule of thumb, the highest insurable sum of a PA policy is based on 6-7 times the individual’s annual earnings.

Claim

You have to fully disclose all material facts in your application form like your health, occupation and number of PA policies currently held.

Evidence and all supporting documents should be submitted along with your claim. If the information is found to be misleading or incorrect, your claim may be void and the insurance company can have the option of taking legal action against you.

Who can apply for PA Insurance?

Most people are eligible to apply for PA Insurance. However, some details such may differ depending on the policy.

People who aren’t eligible to be covered under PA Insurance are those with high career risk i.e: the police,miltary and law enforcement officers, divers, pilots or crew members, aircraft testers, racing drivers, fishermen. People who fall under this category usually have their employer take a special form of PA insurance for them. The payment of compensation to the employees is at the discretion of the employer.

Insurance companies typically categorise occupations or professions into 3 main classes:

Class 1: Professions and occupations involving indoor work and of a non-hazardous nature like accountants, administrators, architects, doctors, indoor sales staff, clerks and the like.

Class 2: Professions and occupations involving indoor work with occasional manual work or involving some outdoor work like bakers, hairdressers, waiters, outdoor sales staff, electronic engineers, civil engineers and the like.

Class 3: Professions and occupations involving light manual work or the use of tools or light machinery (other than wood working machinery), like butchers (no slaughtering), fishmongers, motor mechanics, kitchen workers, hawkers and the like.

The premium payment will be priced according to the classes of occupation. Class 3 has the highest occupation accident risk, followed by Class 2 and Class 1. As such, the higher benefit coverage personal accident plans (which normally covers RM500,000 for accidental death or permanent disablement) will not cover Class 3.

Takaful vs PA Insurance

Personal Accident Takaful and Personal Accident Insurance are economically similar in a sense that they are both annual plans that protect you or your family members with compensation in the event of death, disablement or injuries arising from an accident.

The difference is the concept of Takaful, in which you contribute a sum of money into a general Takaful fund in the form of participative contribution Tabarru’. Participants of the fund ‘agree’ to help each other when they are involved in an accident resulting in death, disablement or injuries. Besides that, if you have not made any claim during the period, you can get a share of the surplus in the general takaful fund at maturity, based on a pre-agreed ratio between you and the Takaful provider.

For example:

Alice purchases a PA Takaful for 2 years coverage, but she didn’t make any claim during these 2 years. The Takaful provider has a total surplus of RM8million and total general contribution of RM20million. Alice’s contribution for the year is RM500 and the pre-agreed sharing ratio for the surplus is 50:50. Therefore, at maturity date, Alice can get a share of the surplus as below:

Surplus sharing ratio = 50% x (RM8million/RM20million)

= 20%

Surplus attributable to Alice = 20% x RM500

= RM100

Before reading the next part where we review PA Insurance products in Malaysia, first see if you can get some free PA insurance! See our Free Personal Accident Policies in Malaysia Guide.

Personal Accident Insurance Plans Quick Navigation

Top Personal Accident Insurance Plans offered by Mobile Network Providers
Top Personal Accident Insurance Plans offered Directly by Insurers
Top Personal Accident Insurance Plans offered by Banks

The Top Personal Accident Insurance Plans offered by Mobile Network Providers

We’ve laid out the top PA policies ordered by Annual Premium per RM10,000 cover, and for ease of comparison seperated them by provider type (even if all policies are actually underwritten by Insurers, they are distributed widely across different types of providers including banks, mobile network companies and insurers themselves.

Provider	Plan Name	Annual Premium	Coverage Amount	Premium/RM10k cover	Extra Coverage
Celcom	Personal Accident Insurance Plan	RM12.00	RM38,000	RM3.16	-
Maxis	Personal Accident Insurance Plan 1	RM60.00	RM180,000	RM3.33	Snatch Theft, Phone Bill
Maxis	Personal Accident Insurance Plan 2	RM24.00	RM70,000	RM3.43	Snatch Theft, Phone Bill
DiGi	PA1	RM72.00	RM160,000	RM4.50	Income Protection, Snatch Theft, Phone Bill
DiGi	PA2	RM72.00	RM50,000	RM4.80	Income Protection, Snatch Theft, Phone Bill
DiGi	PA Family	RM72.00	RM160,000	RM4.80	Family Cover, Income Protection, etc.
Tune	PA Insurance	RM76.80	RM100,000	RM7.68	Higher Coverage, Medical, Funeral, Double Indemnity etc.

Celcom – Lowest Premium Rate (but also low coverage) Personal Accident Insurance Plan Drawbacks : Only provided to selected Celcom Postpaid users; coverage amount at RM38k is quite low compared to the rest of market
Eligible Person: Selected Celcom Postpaid users who are principle account holders, excludes supplementary plan and data stand alone bill plan (no age limit). Insurance Underwriter: MAA Takaful Plan: Accidental death and Permanent disablement – RM38,000 Funeral expenses – RM2,000 Annual premium: RM12 Premium per RM10,000 cover: RM3.16 Exclusions: war risks, suicide and insanity, self inflicted injury, AIDS, provoked murder or assault, engaging in military, naval, air force, police, or fire service duties and hazardous sports
	Go To Celcom
Celcom provides the cheapest premium for its Personal Accident Insurance Plan. However, not everyone can get this promotion as selected Celcom Postpaid customers will get an SMS notification from Celcom to invite them to join this promotion. So if you get this message and interest to join, you have to reply the SMS by typing “PA ON” and sending it to 28881. The plan only provides basic coverage at RM38,000 for accidental death and permanent disablement, and is not flexible to allow you to choose your coverage amount or purchase 2 plans under your name. If you think that RM38,000 compensation in the event of an accident not enough for you, then you have to choose another which suits you. The coverage of this plan will terminate immediately when your Celcom line or account is suspended, disconnected or terminated by Celcom whatever reasons, or you subsequently subscribe to MAA Takaful, the previous Celcom policy underwritten by MAA Takaful will be superceded by the new one.

Maxis – Personal Accident Insurance Plan – High coverage Drawbacks : Only provided for Maxis and Hotlink customers who have a registered principal postpaid line
Eligible Person : Maxis and Hotlink customers who have a registered principal line with minimum 6 months tenure and are between 18-70 years old Insurance Underwriter: ACE Synergy Insurance Plan 1: Accidental death or Permanent disablement – RM180,000 Snatch Theft or Robbery Benefit – RM500 Settlement of Outstanding Phone Bill – RM500 Plan 2: Accidental death or Permanent disablement – RM70,000 Snatch Theft or Robbery Benefit – RM250 Settlement of Outstanding Phone Bill – RM500 Annual premium: RM60 (Plan 1), RM24 (Plan 2) Premium per RM10,000 of cover: RM3.33 (Plan 1), RM3.43 (Plan 2) Exclusions: War, illness and diseases, engaging in military duty, illegal acts, suicide, self-inflicted injury, etc
	Go To Maxis
Maxis provides two plans which are both among the cheapest in the PA Insurance market. The inclusion policy is less restrictive than Celcom, where any Maxis and Hotlink postpaid customers with minimum 6 months tenure can apply through SMS by typing “BUY PA” to 27007, unlike Celcom you do not need to wait for the notification message from Maxis. Upon successful purchase of the policy, an M-money account will be automatically created for you. The insurance premium will be charged to your postpaid bill or Hotlink airtime, and the premium amount will be automatically converted into M-money. Having the Snatch Theft Benefit means the plan will cover you for loss of wallet, purse, or other bags in your possession at the time together with the contents therein or loss of any valuables or jewellery worn by you at the time as a result of the same being snatched away by an unknown person, including any attempt thereof. Robbery means where, in order to commit a theft, or in committing the theft, or in carrying away property obtained by theft, for that end, voluntarily causes or attempts to cause death, hurt or wrongful restraint, or causes in fear of instant death, or of instant hurt, or of instant wrongful restraint or at the time of committing the extortion, commits the extortion by causing or putting in fear of instant death, of instant hurt, or of instant wrongful restraint to you.

Top Personal Accident Insurance Plans offered Directly by Insurers

Small amount of benefit coverage:

UniAsia - Maxi Pro PA Plan Drawbacks : limited benefits, annual premium higher than plans offered by mobile networks
Eligible Person : Anyone who resides in Malaysia between the ages of 18 to 60 is eligible for this plan and it is renewable up to the age of 70. Plan: Accidental death – RM25,000 Permanent disablement – RM25,000 Free extensions: Fire, Hijacking, Strike, Riot, Civil Commotion, Murder and Assault, Harmful Insects,Animal and Snake Bites, Drowning and Food Poisoning, Intoxicating Liquor, Gas Inhalation and Electrocution. Annual premium: RM18 Premium per RM10,000 of cover: RM7.20 Main Exclusions: War and allied risks, Pre-existing physical or mental defect or infirmity, Hazardous sports activities such as mountaineering involving the use of ropes, caving, parachuting, hand gliding, hunting, racing of any kind (other than on foot), scuba diving, bungee jumping and water ski jumping, Radioactive and nuclear weapon material accidents, etc
	Go To UniAsia
UniAsia provides the cheapest premium for its Personal Accident Insurance Plan among the major insurers, but even then it comes out below those offered by mobile networks. The cheapest premium rate of RM18 per annum covers just the minimum basic accidental death and permanent disablement only. This plan is exclusively for individuals, which means that your spouse and/or children will have to buy a separate policy for their own coverage. If RM25,000 isn’t sufficient for you, you are allowed to take more than one PA Insurance policy. The benefits are paid in addition to any other insurance plan that you may have elsewhere only for “Death and Permanent disablement”, which means that you get multiple payouts. If you have an existing PA with UniAsia, you cannot convert your existing PA policy to this plan because each PA poicy offered has different features, which correspond to the premiums charged. So, you may enrol in this Maxi Pro PA Plan and alternatively either choose to continue your existing PA until expiry or terminate and opt to receive a refund.

Range of amounts of benefit coverage:

Kurnia Insurance - Perfect 10 Personal Accident Insurance Drawbacks: Rates not as good as UniAsia
Eligible Person : Malaysian or Permanent Resident of Malaysia aged 30 days to 65 years old, Children below 18 years old are eligible for Plan 1 and 2 only. Plan 1: Accidental death – RM25,000 Permanent disablement – RM25,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM1,000 Hospital income/week, max 52 weeks – RM100 Post hospitalisation allowance/week – RM50 More Plans Plan 2: Accidental death – RM50,000 Permanent disablement – RM50,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM2,000 Hospital income/week, max 52 weeks – RM200 Post hospitalisation allowance/week – RM100 Plan 3: Accidental death – RM100,000 Permanent disablement – RM100,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM3,000 Hospital income/week, max 52 weeks – RM300 Post hospitalisation allowance/week – RM150 Plan 4: Accidental death – RM150,000 Permanent disablement – RM150,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM4,000 Hospital income/week, max 52 weeks – RM400 Post hospitalisation allowance/week – RM200 Plan 5: Accidental death – RM200,000 Permanent disablement – RM200,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM5,000 Hospital income/week, max 52 weeks – RM500 Post hospitalisation allowance/week – RM250 Plan 6: Accidental death – RM300,000 Permanent disablement – RM300,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM6,000 Hospital income/week, max 52 weeks – RM600 Post hospitalisation allowance/week – RM300 Plan 7: Accidental death – RM400,000 Permanent disablement – RM400,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM7,000 Hospital income/week, max 52 weeks – RM700 Post hospitalisation allowance/week – RM350 Plan 8: Accidental death – RM500,000 Permanent disablement – RM500,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM8,000 Hospital income/week, max 52 weeks – RM800 Post hospitalisation allowance/week – RM400 Plan 9: Accidental death – RM750,000 Permanent disablement – RM750,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM9,000 Hospital income/week, max 52 weeks – RM900 Post hospitalisation allowance/week – RM450 Plan 10: Accidental death – RM1,000,000 Permanent disablement – RM1,000,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM10,000 Hospital income/week, max 52 weeks – RM1,000 Post hospitalisation allowance/week – RM500 Other benefits: Personal liability – RM100,000 Repatriation Expenses (on death overseas) – RM5,000 Corrective Dental & Cosmetic Surgery – RM5,000 Bereavement allowance – RM2,000 Ambulance fees – RM500 Free extensions: Strike, Riots, Civil Commotion, Hijacking, Drowning, Amateur sports, Winter sports, Motorcycling, Hunting, Scuba diving, Murder and Assault (unprovoked), Insect, Snake, Vermin, and Animal bites, Disappearance, Natural disaster, Exposure to natural elements, Suffocation through smoke, fumes, poisonous gas or food poisoning, Terrorism cover (excluding nuclear, Chemical or Biological weapons of mass destruction. Annual premium: Plan 1 - RM44 (Class 1 & 2), RM64 (Class 3) Plan 2 - RM78 (Class 1 & 2), RM115 (Class 3) Plan 3 - RM129 (Class 1 & 2), RM191 (Class 3) Plan 4 - RM180 (Class 1 & 2), RM268 (Class 3) Plan 5 - RM231 (Class 1 & 2), RM345 (Class 3) Plan 6 - RM317 (Class 1 & 2) Plan 7 - RM403 (Class 1 & 2) Plan 8 - RM489 (Class 1 & 2) Plan 9 - RM680 (Class 1 & 2) Plan 10 - RM872 (Class 1 & 2) Premium per RM10,000 of cover: RM8.72 – RM17.60 Main Exclusions: Suicide, self-injury, pregnancy, drugs, disease, unlawful acts, aircraft, water-skiing, underwater activities involving use of underwater breathing apparatus (except scuba diving), mountaineering necessitating on ropes or guides, parachuting, hang-gliding, sky-diving, professional sports or games, martial arts, horse-riding, wrestling, boxing, racing of any kind other than on foot, use of woodworking machinery driven by mechanical power, etc
	Go To Kurnia
Kurnia provides 10 plans for you to choose from which provides varying amounts of coverage. The accidental death and permanent disablement coverage from small amount of RM25,000 up to RM1,000,000. While the premiums (for a comparable amount of cover) are higher than UniAsia, Kurnia’s plans cover more benefits and free extensions coverage.

Large amount of benefit coverage:

AXA Insurance - SmartCare VIP Plan Drawbacks: limited to customers in Occupation Class I & Occupation Class II ONLY
Eligible Person : Individuals carrying out work under Class 1 occupation are eligible for Plan 1, 2 & 3 whilst those under Class 2 occupation can insure under Plan 1 and 2 with the age from 18 to 65 years old, renewable up to 75 years. Plan 1: Accidental death – RM1,000,000 Accidental permanent disablement – RM1,000,000 Medical Expense – RM10,000 Personal liability – RM500,000 Repatriation/Funeral Expenses – RM10,000 Plan 2: Accidental death – RM2,000,000 Accidental permanent disablement – RM2,000,000 Medical Expense – RM20,000 Personal liability – RM1,000,000 Repatriation/Funeral Expenses – RM15,000 Plan 3: Accidental death – RM3,000,000 Accidental permanent disablement – RM3,000,000 Medical Expense – RM30,000 Personal liability – RM1,500,000 Repatriation/Funeral Expenses – RM20,000 Others benefits: Bereavement benefit due to dengue fever – RM5,000 Chinese Physician Treatment - Max RM50/visit/day, RM500 per accident Weekly nursing care charges - Max RM1,000/week, RM4,000 per accident Prostheses - Max RM3,000 per accident Annual premium: Plan 1 - RM888 (Class 1), RM1,388(Class 2) Plan 2 - RM1,688 (Class 1), RM2,588(Class 2) Plan 3 - RM2,488 (Class 1) Premium per RM10,000 of cover: RM8.29 – RM8.88 Main Exclusion: Any unlawful act, willful exposure to danger, suicide or intentional self-injury, any pre-existing physical or mental defect or infirmity, HIV and/or any HIV related illness including AIDS and/or any mutant derivatives, intoxication by alcohol or drugs, pregnancy or childbirth, dangerous sports e.g. winter sports, mountaineering, pot-holing, skin-diving, skiing, hockey polo, steeple-chasing, big game hunting or hunting, racing other than foot, flying other than as a passenger in a licensed passenger carrying aircraft, war, invasion, rebellion and terrorism, regular or temporary civil defense air force naval military or police duties
	Go To AXA
If you need large coverage amounts of over RM1 million for accidental death and permanent disablement, AXA might be a better choice for you. Besides the comprehensive amount of coverage, it provide other add-on benefits too. This plan takes care of all the necessary medical treatment due to accidents, hospitalisation and clinical treatment, wherever you are. In addition, if you choose alternative treatments, this plan also covers Chinese medication and services of a bonesetter as well as crutches and wheelchairs, and post-hospitalization weekly nursing care to ensure you get back on your feet as soon as you can. AXA will pay up to the sum insured for medical expenses for each accident and there is no limit to the number of claims made in any one year. You may opt to buy an additional cover for weekly benefits in the event you are totally unable to work temporarily as a result of injuries due to an accident by paying a little more premium starting from RM100. It cover up to 104 weeks with coverage amount starting from RM500.

Top Personal Accident Insurance Plans offered by Banks

RHB Bank - Essential Personal Accident Plan Drawbacks : limited to customers with Occupation Class I & Occupation Class II ONLY
Eligible Person : Individuals aged 18 to 65 years and renewable up to 70 years Plan 1: Accidental death – RM100,000 Permanent disablement – RM100,000 Medical & Surgical Expense – Up to RM3,500 Plan 2: Accidental death – RM200,000 Permanent disablement – RM200,000 Medical & Surgical Expense – Up to RM4,000 Plan 3: Accidental death – RM500,000 Permanent disablement – RM500,000 Medical & Surgical Expense – Up to RM5,000 Plan 4: Accidental death – RM750,000 Permanent disablement – RM750,000 Medical & Surgical Expense – Up to RM10,000 Plan 5: Accidental death – RM1,000,000 Permanent disablement – RM1,000,000 Medical & Surgical Expense – Up to RM15,000 Others benefits: Bereavement allowance – RM5,000 Renewal bonus - 5% per year up to maximum of 15% subject to no claim has been made No claim premium refund - 10% cash back (every 3 years) of the total accumulated 3 years premium received by the Company Advance payment of Accident Death benefit - 10% advance payment of the Principal Accident Death benefit upon Accident Death Free Extensions: Hijacking and Disappearance, Murder or Assault, Riot, Strike and Civil Commotion, Accidental Gas Inhalation, Drowning , Food or Drink Poisoning and Intoxication, Exposure to Elements, Accidental Gas Suffocation through Smokes and Fumes, Insect, Snake or Animal Bites, Hunting and Mountaineering (Not involving the use of rope), Bungee Jumping, Motorcycling and Comatose. Annual premium: Plan 1 - RM97 (Class 1), RM142 (Class 2) Plan 2 - RM197 (Class 1), RM288 (Class 2) Plan 3 - RM394 (Class 1), RM572 (Class 2) Plan 4 - RM632 (Class 1), RM836 (Class 2) Plan 5 - RM848 (Class 1), RM1,042 (Class 2) Premium per RM10,000 of cover: RM7.88 – RM9.70 Main Exclusion: War, suicide, unlawful acts, aircraft, professional sport, underwater activities, Childbirth, miscarriage, AIDS etc
	Go To RHB
RHB provides 5 plan which you can choose either one that suitable for you, but the lowest coverage plan starts from RM100,000 coverage for accidental death and permanent disablement. If your coverage need is under this minimum coverage, you may go for Kurnia Insurance with more other benefits or UniAsia Insurance with the basic coverage.

Hong Leong Bank – Personal Accident Plan Drawbacks: Rates not as good as RHB
Eligible Person : Malaysians, Permanent Residents, Work Permit/Employment Pass Holders or otherwise legally employed in Malaysia and their Dependents between 18 to 65 years old (renewal up yo age of 70). Insurance Underwriter: MSIG Insurance (Malaysia) Berhad Plan: Accidental death – RM150,000 Permanent disablement (total/partial) – Up to RM150,000 Medical Expense – Up to RM2,000 Bereavement benefit – RM2,000 Convalescence allowance – RM5,000 Personal liability – Up to RM150,000 Double indemnity – Up to RM300,000 Renewal Bonus – 5% for 10 years Annual premium: RM168 Premium per RM10,000 of cover: RM11.20 Main Exclusion: War and related risks, Government Regulations or Acts or Authorities, Hazardous sports including parachuting, hang gliding, mountaineering, any kind of race (other than on foot or swimming) or trial of speed or reliability, Suicide, self-inflicted injury or illness, Pregnancy, childbirth, physical or mental defect or infirmity, AIDS, AIDS-related complex or sexually-transmitted diseases, Drug abuse unless the drug is taken in accordance with an authorized medical prescription (but not for the treatment of drug addiction), Air travel except as a passenger in a fully licensed passenger carrying aircraft, Any crew, trade, technical or sporting activity in connection with an aircraft, Acts of Terrorism etc.
	Go To Hong Leong
Hong Leong provides a plan that is quite competitive in the market, but it comes out quite low on our top table comparison here.

If you aim for the best value-for-money cover, be sure you understand what you want to be covered for. A cheaper policy may offer a budget coverage with a lot of limitations and restrictions. However, that limited scope may be all you need, especially if the payment for extra coverage overlaps with another insurance policy.

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Tagged death benefit, pa insurance, personal accident insurance, socso

Featured

Personal Accident Insurance in Malaysia – A Beginner’s Guide

What is Personal Accident (PA) Insurance?

I make SOCSO / PERKESO contributions, do I still need Personal Accident Insurance?

Where can I get a PA Insurance policy?

How much does it cost?

What should I be aware of?

Coverage

Exclusions

Scale of benefits and sum insured

Claim

Who can apply for PA Insurance?

Most people are eligible to apply for PA Insurance. However, some details such may differ depending on the policy.

Insurance companies typically categorise occupations or professions into 3 main classes:

Class 1: Professions and occupations involving indoor work and of a non-hazardous nature like accountants, administrators, architects, doctors, indoor sales staff, clerks and the like.

Class 2: Professions and occupations involving indoor work with occasional manual work or involving some outdoor work like bakers, hairdressers, waiters, outdoor sales staff, electronic engineers, civil engineers and the like.

Class 3: Professions and occupations involving light manual work or the use of tools or light machinery (other than wood working machinery), like butchers (no slaughtering), fishmongers, motor mechanics, kitchen workers, hawkers and the like.

Takaful vs PA Insurance

Personal Accident Takaful and Personal Accident Insurance are economically similar in a sense that they are both annual plans that protect you or your family members with compensation in the event of death, disablement or injuries arising from an accident.

For example:

Surplus sharing ratio = 50% x (RM8million/RM20million)

= 20%

Surplus attributable to Alice = 20% x RM500

= RM100

Personal Accident Insurance Plans Quick Navigation

Top Personal Accident Insurance Plans offered by Mobile Network Providers Top Personal Accident Insurance Plans offered Directly by Insurers Top Personal Accident Insurance Plans offered by Banks

The Top Personal Accident Insurance Plans offered by Mobile Network Providers

Celcom – Lowest Premium Rate (but also low coverage) Personal Accident Insurance Plan Drawbacks : Only provided to selected Celcom Postpaid users; coverage amount at RM38k is quite low compared to the rest of market

Eligible Person: Selected Celcom Postpaid users who are principle account holders, excludes supplementary plan and data stand alone bill plan (no age limit). Insurance Underwriter: MAA Takaful Plan: Accidental death and Permanent disablement – RM38,000 Funeral expenses – RM2,000

Annual premium: RM12 Premium per RM10,000 cover: RM3.16

Exclusions: war risks, suicide and insanity, self inflicted injury, AIDS, provoked murder or assault, engaging in military, naval, air force, police, or fire service duties and hazardous sports

The coverage of this plan will terminate immediately when your Celcom line or account is suspended, disconnected or terminated by Celcom whatever reasons, or you subsequently subscribe to MAA Takaful, the previous Celcom policy underwritten by MAA Takaful will be superceded by the new one.

Maxis – Personal Accident Insurance Plan – High coverage Drawbacks : Only provided for Maxis and Hotlink customers who have a registered principal postpaid line

Plan 2: Accidental death or Permanent disablement – RM70,000 Snatch Theft or Robbery Benefit – RM250 Settlement of Outstanding Phone Bill – RM500

Annual premium: RM60 (Plan 1), RM24 (Plan 2) Premium per RM10,000 of cover: RM3.33 (Plan 1), RM3.43 (Plan 2)

Exclusions: War, illness and diseases, engaging in military duty, illegal acts, suicide, self-inflicted injury, etc

Upon successful purchase of the policy, an M-money account will be automatically created for you. The insurance premium will be charged to your postpaid bill or Hotlink airtime, and the premium amount will be automatically converted into M-money.

Top Personal Accident Insurance Plans offered Directly by Insurers

Small amount of benefit coverage:

UniAsia - Maxi Pro PA Plan Drawbacks : limited benefits, annual premium higher than plans offered by mobile networks

Eligible Person : Anyone who resides in Malaysia between the ages of 18 to 60 is eligible for this plan and it is renewable up to the age of 70. Plan: Accidental death – RM25,000 Permanent disablement – RM25,000

Free extensions: Fire, Hijacking, Strike, Riot, Civil Commotion, Murder and Assault, Harmful Insects,Animal and Snake Bites, Drowning and Food Poisoning, Intoxicating Liquor, Gas Inhalation and Electrocution.

Annual premium: RM18 Premium per RM10,000 of cover: RM7.20

UniAsia provides the cheapest premium for its Personal Accident Insurance Plan among the major insurers, but even then it comes out below those offered by mobile networks. The cheapest premium rate of RM18 per annum covers just the minimum basic accidental death and permanent disablement only.

Range of amounts of benefit coverage:

Kurnia Insurance - Perfect 10 Personal Accident Insurance Drawbacks: Rates not as good as UniAsia

More Plans

Plan 2: Accidental death – RM50,000 Permanent disablement – RM50,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM2,000 Hospital income/week, max 52 weeks – RM200 Post hospitalisation allowance/week – RM100

Plan 3: Accidental death – RM100,000 Permanent disablement – RM100,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM3,000 Hospital income/week, max 52 weeks – RM300 Post hospitalisation allowance/week – RM150

Plan 4: Accidental death – RM150,000 Permanent disablement – RM150,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM4,000 Hospital income/week, max 52 weeks – RM400 Post hospitalisation allowance/week – RM200

Plan 5: Accidental death – RM200,000 Permanent disablement – RM200,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM5,000 Hospital income/week, max 52 weeks – RM500 Post hospitalisation allowance/week – RM250

Plan 6: Accidental death – RM300,000 Permanent disablement – RM300,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM6,000 Hospital income/week, max 52 weeks – RM600 Post hospitalisation allowance/week – RM300

Plan 7: Accidental death – RM400,000 Permanent disablement – RM400,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM7,000 Hospital income/week, max 52 weeks – RM700 Post hospitalisation allowance/week – RM350

Plan 8: Accidental death – RM500,000 Permanent disablement – RM500,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM8,000 Hospital income/week, max 52 weeks – RM800 Post hospitalisation allowance/week – RM400

Plan 9: Accidental death – RM750,000 Permanent disablement – RM750,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM9,000 Hospital income/week, max 52 weeks – RM900 Post hospitalisation allowance/week – RM450

Plan 10: Accidental death – RM1,000,000 Permanent disablement – RM1,000,000 Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM10,000 Hospital income/week, max 52 weeks – RM1,000 Post hospitalisation allowance/week – RM500

Other benefits: Personal liability – RM100,000 Repatriation Expenses (on death overseas) – RM5,000 Corrective Dental & Cosmetic Surgery – RM5,000 Bereavement allowance – RM2,000 Ambulance fees – RM500

Kurnia provides 10 plans for you to choose from which provides varying amounts of coverage. The accidental death and permanent disablement coverage from small amount of RM25,000 up to RM1,000,000.

Large amount of benefit coverage:

AXA Insurance - SmartCare VIP Plan Drawbacks: limited to customers in Occupation Class I & Occupation Class II ONLY

Eligible Person : Individuals carrying out work under Class 1 occupation are eligible for Plan 1, 2 & 3 whilst those under Class 2 occupation can insure under Plan 1 and 2 with the age from 18 to 65 years old, renewable up to 75 years.

Plan 1: Accidental death – RM1,000,000 Accidental permanent disablement – RM1,000,000 Medical Expense – RM10,000 Personal liability – RM500,000 Repatriation/Funeral Expenses – RM10,000

Plan 2: Accidental death – RM2,000,000 Accidental permanent disablement – RM2,000,000 Medical Expense – RM20,000 Personal liability – RM1,000,000 Repatriation/Funeral Expenses – RM15,000

Plan 3: Accidental death – RM3,000,000 Accidental permanent disablement – RM3,000,000 Medical Expense – RM30,000 Personal liability – RM1,500,000 Repatriation/Funeral Expenses – RM20,000

Others benefits: Bereavement benefit due to dengue fever – RM5,000 Chinese Physician Treatment - Max RM50/visit/day, RM500 per accident Weekly nursing care charges - Max RM1,000/week, RM4,000 per accident Prostheses - Max RM3,000 per accident

Annual premium: Plan 1 - RM888 (Class 1), RM1,388(Class 2) Plan 2 - RM1,688 (Class 1), RM2,588(Class 2) Plan 3 - RM2,488 (Class 1)

If you need large coverage amounts of over RM1 million for accidental death and permanent disablement, AXA might be a better choice for you. Besides the comprehensive amount of coverage, it provide other add-on benefits too.

You may opt to buy an additional cover for weekly benefits in the event you are totally unable to work temporarily as a result of injuries due to an accident by paying a little more premium starting from RM100. It cover up to 104 weeks with coverage amount starting from RM500.

Top Personal Accident Insurance Plans offered by Banks

RHB Bank - Essential Personal Accident Plan Drawbacks : limited to customers with Occupation Class I & Occupation Class II ONLY

Eligible Person : Individuals aged 18 to 65 years and renewable up to 70 years Plan 1: Accidental death – RM100,000 Permanent disablement – RM100,000 Medical & Surgical Expense – Up to RM3,500

Plan 2: Accidental death – RM200,000 Permanent disablement – RM200,000 Medical & Surgical Expense – Up to RM4,000

Plan 3: Accidental death – RM500,000 Permanent disablement – RM500,000 Medical & Surgical Expense – Up to RM5,000

Plan 4: Accidental death – RM750,000 Permanent disablement – RM750,000 Medical & Surgical Expense – Up to RM10,000

Plan 5: Accidental death – RM1,000,000 Permanent disablement – RM1,000,000 Medical & Surgical Expense – Up to RM15,000

Annual premium: Plan 1 - RM97 (Class 1), RM142 (Class 2) Plan 2 - RM197 (Class 1), RM288 (Class 2) Plan 3 - RM394 (Class 1), RM572 (Class 2) Plan 4 - RM632 (Class 1), RM836 (Class 2) Plan 5 - RM848 (Class 1), RM1,042 (Class 2)

Main Exclusion: War, suicide, unlawful acts, aircraft, professional sport, underwater activities, Childbirth, miscarriage, AIDS etc

Hong Leong Bank – Personal Accident Plan Drawbacks: Rates not as good as RHB

Annual premium: RM168 Premium per RM10,000 of cover: RM11.20

Hong Leong provides a plan that is quite competitive in the market, but it comes out quite low on our top table comparison here.

Top Personal Accident Insurance Plans offered by Mobile Network Providers
Top Personal Accident Insurance Plans offered Directly by Insurers
Top Personal Accident Insurance Plans offered by Banks

Celcom – Lowest Premium Rate (but also low coverage) Personal Accident Insurance Plan
Drawbacks : Only provided to selected Celcom Postpaid users; coverage amount at RM38k is quite low compared to the rest of market

Eligible Person: Selected Celcom Postpaid users who are principle account holders, excludes supplementary plan and data stand alone bill plan (no age limit).
Insurance Underwriter: MAA Takaful
Plan:
Accidental death and Permanent disablement – RM38,000
Funeral expenses – RM2,000

Annual premium: RM12
Premium per RM10,000 cover: RM3.16

Maxis – Personal Accident Insurance Plan – High coverage
Drawbacks : Only provided for Maxis and Hotlink customers who have a registered principal postpaid line

Plan 2:
Accidental death or Permanent disablement – RM70,000
Snatch Theft or Robbery Benefit – RM250
Settlement of Outstanding Phone Bill – RM500

Annual premium: RM60 (Plan 1), RM24 (Plan 2)
Premium per RM10,000 of cover: RM3.33 (Plan 1), RM3.43 (Plan 2)

UniAsia - Maxi Pro PA Plan
Drawbacks : limited benefits, annual premium higher than plans offered by mobile networks

Eligible Person : Anyone who resides in Malaysia between the ages of 18 to 60 is eligible for this plan and it is renewable up to the age of 70.
Plan:
Accidental death – RM25,000
Permanent disablement – RM25,000

Annual premium: RM18
Premium per RM10,000 of cover: RM7.20

Kurnia Insurance - Perfect 10 Personal Accident Insurance
Drawbacks: Rates not as good as UniAsia

Plan 2:
Accidental death – RM50,000
Permanent disablement – RM50,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM2,000
Hospital income/week, max 52 weeks – RM200
Post hospitalisation allowance/week – RM100

Plan 3:
Accidental death – RM100,000
Permanent disablement – RM100,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM3,000
Hospital income/week, max 52 weeks – RM300
Post hospitalisation allowance/week – RM150

Plan 4:
Accidental death – RM150,000
Permanent disablement – RM150,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM4,000
Hospital income/week, max 52 weeks – RM400
Post hospitalisation allowance/week – RM200

Plan 5:
Accidental death – RM200,000
Permanent disablement – RM200,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM5,000
Hospital income/week, max 52 weeks – RM500
Post hospitalisation allowance/week – RM250

Plan 6:
Accidental death – RM300,000
Permanent disablement – RM300,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM6,000
Hospital income/week, max 52 weeks – RM600
Post hospitalisation allowance/week – RM300

Plan 7:
Accidental death – RM400,000
Permanent disablement – RM400,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM7,000
Hospital income/week, max 52 weeks – RM700
Post hospitalisation allowance/week – RM350

Plan 8:
Accidental death – RM500,000
Permanent disablement – RM500,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM8,000
Hospital income/week, max 52 weeks – RM800
Post hospitalisation allowance/week – RM400

Plan 9:
Accidental death – RM750,000
Permanent disablement – RM750,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM9,000
Hospital income/week, max 52 weeks – RM900
Post hospitalisation allowance/week – RM450

Plan 10:
Accidental death – RM1,000,000
Permanent disablement – RM1,000,000
Medical expenses (include traditional treatment, RM30/visit up to RM300 per accident) – RM10,000
Hospital income/week, max 52 weeks – RM1,000
Post hospitalisation allowance/week – RM500

Other benefits:
Personal liability – RM100,000
Repatriation Expenses (on death overseas) – RM5,000
Corrective Dental & Cosmetic Surgery – RM5,000
Bereavement allowance – RM2,000
Ambulance fees – RM500

AXA Insurance - SmartCare VIP Plan
Drawbacks: limited to customers in Occupation Class I & Occupation Class II ONLY

Plan 1:
Accidental death – RM1,000,000
Accidental permanent disablement – RM1,000,000
Medical Expense – RM10,000
Personal liability – RM500,000
Repatriation/Funeral Expenses – RM10,000

Plan 2:
Accidental death – RM2,000,000
Accidental permanent disablement – RM2,000,000
Medical Expense – RM20,000
Personal liability – RM1,000,000
Repatriation/Funeral Expenses – RM15,000

Plan 3:
Accidental death – RM3,000,000
Accidental permanent disablement – RM3,000,000
Medical Expense – RM30,000
Personal liability – RM1,500,000
Repatriation/Funeral Expenses – RM20,000

Others benefits:
Bereavement benefit due to dengue fever – RM5,000
Chinese Physician Treatment - Max RM50/visit/day, RM500 per accident
Weekly nursing care charges - Max RM1,000/week, RM4,000 per accident
Prostheses - Max RM3,000 per accident

Annual premium:
Plan 1 - RM888 (Class 1), RM1,388(Class 2)
Plan 2 - RM1,688 (Class 1), RM2,588(Class 2)
Plan 3 - RM2,488 (Class 1)

RHB Bank - Essential Personal Accident Plan
Drawbacks : limited to customers with Occupation Class I & Occupation Class II ONLY

Eligible Person : Individuals aged 18 to 65 years and renewable up to 70 years
Plan 1:
Accidental death – RM100,000
Permanent disablement – RM100,000
Medical & Surgical Expense – Up to RM3,500

Plan 2:
Accidental death – RM200,000
Permanent disablement – RM200,000
Medical & Surgical Expense – Up to RM4,000

Plan 3:
Accidental death – RM500,000
Permanent disablement – RM500,000
Medical & Surgical Expense – Up to RM5,000

Plan 4:
Accidental death – RM750,000
Permanent disablement – RM750,000
Medical & Surgical Expense – Up to RM10,000

Plan 5:
Accidental death – RM1,000,000
Permanent disablement – RM1,000,000
Medical & Surgical Expense – Up to RM15,000

Annual premium:
Plan 1 - RM97 (Class 1), RM142 (Class 2)
Plan 2 - RM197 (Class 1), RM288 (Class 2)
Plan 3 - RM394 (Class 1), RM572 (Class 2)
Plan 4 - RM632 (Class 1), RM836 (Class 2)
Plan 5 - RM848 (Class 1), RM1,042 (Class 2)

Hong Leong Bank – Personal Accident Plan
Drawbacks: Rates not as good as RHB

Annual premium: RM168
Premium per RM10,000 of cover: RM11.20