Personal accidents - unnecessary ?!
A product that has received a lot of slander and probably rightly so.
When we talk about an accident or injury that we do not know we are thinking about personal accident insurance.
I think the most important thing that can be said about personal accident insurance is that its purpose is not to replace disability insurance, but in addition
When we have good and complete disability insurance (up to 75% at least) we can rest assured that if we are sick or injured and can not work at the job we worked at or another job depending on our experience and education we know we will be covered until age 67 at least and maybe even more in the new policies if it is decided to extend the retirement age after a waiting period of 1 month / 3 months or 6 months.
Personal accident insurance is designed to slightly upgrade your compensation!
It is usually sold in multiple packages of 50,000 for disability from an accident, 50,000 for death from an accident and 20 percent of the amount of coverage for fractures and burns in addition to the payment for hospitalization days of about NIS 450 per day of hospitalization after a day or 3 days of hospitalization. The coverage is based on the type and manner of the injury, for example if someone breaks a hand he will receive 35% of 20% of the purchased coverage.
For example: Someone purchased 150,000 disability / death coverage from an accident and 20% fractures
Breaks their arm, then he will get 35% of 20% of 150,000, that is
150,000 * 35% * 20% = that is 10,500 NIS, if someone suffered a very serious injury such as a disability due to an accident in which both legs were amputated then he will receive 100% of the 150,000 and the policy will be canceled.
In both cases these are not very large amounts that will not be enough for the average person for more than a few months or a few years and therefore the product personal accidents is less important than loss of ability to work or disability (through the pension fund)
For years unlicensed callers would call people and would very aggressively sell them packages upon packages of this product and many times it was an elderly and helpless population.
So why buy personal accidents anyway, the answer especially for occupational disability
In the not-so-distant past, there was a product that provided coverage for an accident or illness regardless of salary (such as loss of ability to work) through the Phoenix company that allowed for compensation of up to NIS 4,000 per month within 14 days of waiting only.
Today it exists as an appendix (raider) occupational disability from an accident only within 14 days.
A person who rides a motorcycle / scooter / scooter or deals in an area where there is a high chance of having an accident such as a crane operator, construction worker and wants to significantly shorten the waiting time until he starts receiving money in case of accident or injury can purchase a personal accident package + occupational disability insted of waiting 3 months until he starts getting money in case of an incident.
Please note: Usually the direct companies abuse this product
And sell it wholesale.
All this is likely to change on 02/2021 when the new reform of the Capital Market Authority takes effect
Among other things, the product can now be sold by a licensee holder only and from February 2021 will be renewed every two years so that every two years the customer will receive a reminder that he purchased the product of personal accidents.