Accidental Insurance in the UK

There are plenty of insurance types available in the UK market, and typically, each insurance has a different application, price, quality, or guarantee, just like any other services or products.

Accidental insurance or Accidental protection is the type of insurance referred to as Non-Occupational Accident in the UK. Many insurance sector experts in the UK have very critical opinions about this type of policy, as they often have very limited coverage, many exclusions, and unfavourable terms and conditions, often reducing coverage to situations such as lost limbs or fractures. Primarily, to receive compensation from this type of insurance, the damage must be caused directly by an accident – so if an amputation of a leg occurs due to complications from an illness (e.g., diabetes), unfortunately, you will not receive compensation because it is not an accident situation, even if the insurer’s table states that they pay, for example, £50,000 or £100,000 for limb loss. Unfortunately, few people will read that it must be an “accidental loss of limb”. Often, it is not the fault of the person purchasing such insurance but the agent who did not fully explain it. Accidental insurance policies are usually relatively cheap and sometimes have several additional options to make the offer more attractive, which may seem deceptively attractive to some, such as hospital stays or children’s fractures.

Hospital Benefit – usually between £50-£100 per night of hospital stay. Suppose you have a knee problem and require surgery, so you will have to stay in the hospital for 3 days. Will the money you receive for hospital stay be sufficient if after the operation you cannot walk or work for several months? Probably, such an amount will be unsatisfactory and insufficient to cover bills.

Child Fracture Cover – yes, kids can break bones. Sure, the payout is often just a few hundred pounds, which could buy a new toy or a trip to Legoland once the cast comes off. But is that really crucial? Wouldn’t it make more sense to focus on solid insurance for adults? After all, they’re the breadwinners, supporting the family. If something happens to them, it could have far worse consequences for the whole family.

Accidental insurance policies can be the right solution for some individuals – mainly those working in very risky professions, engaging in extreme sports, or those unable to get insurance on standard terms due to a medical reasons. For most people working and living in the UK, it is advisable to treat it as a complement to the insurance package or as a secondary policy.

Insurance quote

A significant portion of accidents that may occur are already somewhat insured, although we may not realise it. Here are a few examples:

1. Road accident – covered by car insurance / third-party liability insurance.
2. Workplace accident – employers in the UK are required to have Employers Liability insurance, which can cover the situation if something happens to you at work and you suffer injury.
3. Shopping accident in a store – if you slip on spilled yogurt in a supermarket and dislocate your shoulder, the store has public liability insurance, from which you can claim compensation for the injury.

When it comes to accident insurance, it is essential to take a broader perspective and, therefore, worth looking into life insurance, income protection and critical illness cover offers and choosing the right policy for yourself.

Many insurance advisers in the UK agree that the primary type of insurance for people working in the UK should be income protection insurance, which is comprehensive private policy covering not only situations where you have an accident but also health issues and other health conditions that prevent you from working and earning. For many, this is the top priority to ensure that they do not have problems with receiving compensation when something happens.

Income Protection (or Accident and sickness insurance – other type of income replacement plan) can be described as the equivalent of private sickness payment – it is very versatile because there is no specific list of conditions and under what circumstances they must happen to you; it pays compensation based on the period you are on sick leave and unable to work. It doesn’t matter if it’s caused by a fracture, cancer diagnosis, heart attack, hip surgery, back pain, or lung failure. Insurance on such terms provides broader coverage and more potential situations in which you can receive compensation.

Another very important and often chosen solution is critical illness insurance in the UK – Critical Illness Cover. This type of policy covers expenses related to situations if you have a serious illness diagnosis – such as cancer, heart attack, stroke, multiple sclerosis, or total and permanent disability. Usually, the list of illnesses covered by this insurance is between 50-80 conditions. The payout is usually one-off and tax-free, so you can quickly receive money, which could be used to cover treatment costs — for private treatment, therapies, or other things that will be useful in these difficult times. Undoubtedly, it is easier to approach therapy and treatment of critical illnesses when you have a considerable cash injection and do not have to worry about finances for a while, for yourself and your family.

It is also worth noting that most critical illness insurance policies automatically include insurance for children (at no additional cost or for a small additional fee). Thus, if your child develops a serious illness, you can also count on additional compensation. For many parents, receiving specific compensation if their child has cancer or heart surgery is more important than receiving a few hundred pounds if their children break their arm.

Of course, for everyone with children, a family to support, or debts, life insurance in the UK will also be significant. This type of policy secures the finances of your loved ones in case of death. The insurance can be tailored to individual requirements, circumstances, and budget.

For all those considering purchasing life insurance, it is worth noting the claims process and to write the policy into Trust – i.e., having a valid Trust deed will be crucial when the insured person dies, so the family does not have to wait long for the money and they are distributed correctly (e.g. in the case of unmarried couples).

The price of accident insurance in the UK is usually determined by the compensation amounts you can receive in the event of an accident or injury. Typically, the larger the compensation amounts offered, the higher the monthly cost of such insurance. The scope of coverage will also affect the price – the more potential circumstances in which you may qualify for compensation, the higher you can expect the price to be.

The amounts of compensation for individual accidents should be specified in the insurance terms. They can range from a few hundred pounds for minor injuries to several hundred thousand for very serious accidents with long-lasting and irreversible health impairments. It is advisable to carefully check the insurance terms before deciding to purchase a policy. In the case of compensation from other insurance policies, such as motor insurance after a car accident or from an employer after an accident at work, it can even reach several million.

Most often, the age until which you can continue accident insurance is between 65-70 years.

Accidental insurance policies may have certain limitations, including:

• territorial – insurance may not work if something happens to you in certain countries.
• self-inflicted injuries.
• participation in some very risky sports or activities.
• illegal activities.
• abuse of alcohol or being under the influence of intoxicating substances.

The above are just examples, and often the list of exclusions is much longer. Above all, it should be remembered that Accidental insurance plans usually cover only situations and conditions directly caused by an accident.

Accident insurance typically allows for multiple claims for compensation if necessary.

It’s hard to say definitively and it can depend on the type of accident, the circumstances of the event, the extent of the injury, and many other factors. The process of receiving compensation for an uncomplicated bone fracture in the UK generally may take a matter of weeks, while on the other hand, the procedure related to serious disability may take many months.