Recently, on the initiative of one of our clients, we were discussing the pros and cons of passenger accident insurance.
As you might well know, the insurance is, as a rider, part of a motorcar or motorbike insurance. Owners of the vehicles have the option to insure passenger accidents in combination with the coverage of Own Damage & Theft. Or, in case the insurance goes via the office , a part of our Super Third Party Liability policy.
The basic coverage of the passenger accident rider (PAR) is the “ACCIDENTAL DEATH AND DISABLEMENT”. Insured is a lump sum of (example) PHP 500,000.00 or PHP 100,000.00 / person.
One can also insure (optional) accident medical expense and accident burial expense. However, the coverage for these risks is mostly limited to up to 10% of the capital as mentioned here above.
In special cases upgrading the insured sum for medical expenses and burial expenses is possible but will never be more than 40% or 50% of the capital insured sum. This shows us immediately that these amounts are totally insufficient comparing to foreign countries. They offer coverage up to a few million US Dollars, Euros, etc., as well as for the third-party inside and outside the vehicle. In these countries, passengers are mostly well insured against medical expenses.
Therefore these riders (PAR) are mostly secondary coverage. Our local market has no proper answer to this situation.
Passengers can only see to it that they have good medical insurance so that in case of an event they can claim these expenses on their own medical insurance.
AIC can assist you to choose the medical insurance which fits your personal circumstances.
For more information please contact us.