A personal accident policy is usually a short document. Its words still carry precise meanings. Terms such as occupation class, sum insured and permanent disability decide what a plan pays and when it pays.
This guide explains sixteen of those terms. They follow the order a reader usually meets them: first when getting a quote, then in the policy wording, and finally when making a claim. Each term comes with a short example from daily life in Singapore.
The explanations are general. Each insurer writes its own wording. The exact meaning in a given plan is set out in that plan's policy document.
1. Words met when getting a quote
Occupation class
Insurers group jobs into four occupation classes by accident risk. Office work is class 1. Heavy manual work is class 4, which most insurers do not cover online. An accountant at a desk in Raffles Place sits in a lower class than an electrician working on HDB renovations. The site has price pages for class 1 office jobs, class 2 outdoor jobs and class 3 manual jobs.
Sum insured
The sum insured is the lump sum paid if the insured person dies or is permanently disabled in an accident. It is chosen when the plan is bought. Many people choose a sum equal to a few years of income. That gives a household time to keep up with mortgage payments or school fees while it adjusts.
Premium
The premium is the price of the cover. For this kind of insurance it depends mainly on the occupation class and the sum insured. As an example from 18 October 2026, 19 insurers price S$200,000 of cover for an accountant aged 18 to 59. Premiums run from about S$174 to about S$1,201 on the accountant price page. These are today's examples, not what any reader will pay.
Age limits
Prices shown on the site are for an adult aged 18 to 59. Most insurers cover adults up to age 65. Some charge more from age 60. The insurer confirms the applicant's age when the application is made.
2. Words that describe the main benefit
Accident
The whole policy turns on this word. Personal accident cover pays for injury caused by an accident. In general, insurers mean a sudden, unexpected event from outside the body. A fall on a wet floor at a hawker centre is the kind of event the word is meant to capture. A back problem that develops slowly over years usually is not.
Accidental death
This benefit pays the sum insured if the insured person dies as a result of an accident. The payment goes to the person's estate or named beneficiary, depending on the plan. It is a fixed lump sum. It does not depend on the person's debts or the family's actual costs.
Permanent disability
This benefit pays when an accident causes a lasting loss, such as the loss of a limb or of sight. The policy usually lists which injuries count. It also sets out how much of the sum insured each one pays. These lists differ between plans, so they are worth reading side by side.
3. Words that describe medical benefits
Medical expenses limit
Medical bills after an accident are paid up to a separate limit. This limit is smaller than the sum insured. A visit to the emergency department after a fall on MRT station stairs would draw on this limit. The amount differs between plans and is shown on the comparison page.
TCM and physiotherapy
Some plans include traditional Chinese medicine (TCM) and physiotherapy within the medical expenses limit. A sprained ankle from a weekend futsal game is often treated at a neighbourhood TCM clinic or by a physiotherapist. Whether those visits are paid depends on the plan wording.
Daily hospital cash
This is a fixed cash amount paid for each day the insured person stays in hospital after an accident. It is paid regardless of the hospital bill itself. Some people use it for transport, meals or lost earnings during the stay. The daily amount differs between plans.
Infectious disease cover
Some plans also pay for named infectious diseases, such as dengue and HFMD (hand, foot and mouth disease). These are illnesses, not accidents. They are covered only when the plan names them. Families in estates with dengue clusters, or with children in preschool, may notice this line in a plan.
4. Words that set the limits of cover
Worldwide cover
Most plans cover the insured person worldwide, 24 hours a day. Some limit the length of each trip abroad, for example to 90 or 180 days per trip. A sales executive who spends weeks in Jakarta or Ho Chi Minh City would check this limit. The field sales price page shows today's prices for that kind of role.
Exclusions
Exclusions are the events a policy does not pay for. Common ones in personal accident plans are:
- illness that was not caused by an accident, unless the plan names it
- self-inflicted injury
- injury while under the influence of alcohol or drugs
- war, terrorism and nuclear risks
An injury after drinking at a year-end company dinner, for example, may fall within the alcohol exclusion.
Health insurance
Personal accident insurance is not health insurance. It pays for accidents only. Hospital bills from an illness, such as pneumonia, need a health plan such as an Integrated Shield Plan. Many people in Singapore hold both, because each covers a different kind of event.
5. Words met when making a claim
Claim
A claim is a formal request to the insurer for payment under the policy. It usually includes the claim form, medical reports, bills and an account of how the accident happened. The Claims page explains how claims for plans bought through the site are handled. Payment decisions rest with the insurer.
Change in occupation
The occupation class sets the price, so the insurer needs to know if the insured person's job changes. If it is not told, a claim may be cut. Someone who leaves an office role to become a delivery rider has moved to a job with more time on the road. Telling the insurer keeps the policy matched to the work actually being done.
In summary
Three terms do most of the work in a personal accident policy. The occupation class sets the price, and the insurer needs to hear about any change in job. The sum insured is the lump sum for death or permanent disability, while medical bills sit under a separate, smaller limit. The word accident, read with the exclusions, marks the line between this cover and health insurance. Plans and today's prices can be compared on the personal accident quote page.