Australia accident insurance is often taken lightly. Research conducted by the Australian Institute of Superannuation Trustees and Industry Funds Forum in 2008 found that 74% of the policyholders of total and permanent disability insurance were under-insured by about $100,000, while 45% were under-insured by $1,000 or more per month for income protection insurance. The reasons for not buying insurance are the lack of knowledge, perceived cost of the policy and an indifferent attitude. Normally it is too late by the time people realize the importance of this variant of Australian health insurance.
Australia Accident Insurance: Concept
When a policyholder of Australia accident insurance meets with an accident, s/he is entitled to numerous benefits under the 1985 Australia Accident Compensation Law. This law, which was updated in December 2007, permits an injured policyholder to seek workers compensation, medical indemnity cover, public liability insurance and motor transport compensation.
To be eligible for Australia accident insurance, policyholders need to establish that the accident was the result of either an involuntary mishap or a mistake of a third party. The most common areas of eligibility for Australia accident compensation are workplace and motor vehicle accidents.
Australia Accident Insurance: Statutory Benefits
Once the eligibility of a policyholder is endorsed by the insurance company, the Australia accident insurance policyholder can receive three types of benefits:
Income replacement benefits: This type of benefit is offered after the injured policyholder is not found fit to resume work for a specific period.
Medical and care benefits: The compensation is based on the assessment of a certified physician.
Non-economic loss: This benefit is offered if the policyholder is assessed with permanent impairment. In this case, the Australia accident compensation is settled in a lump-sum payment.
Knowledge about Australia accident insurance and its benefits is critical to seeking the most appropriate cover. Buying the right Australian health insurance policy can save people from facing a huge financial crunch.