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What is Motor Personal Accident Insurance?

GoBear’s insights have shown that personal accident benefits to drivers and passengers is one of the most sought-after coverages. Most consumers are not aware that this cover can be held as a standalone policy.

GoBear Malaysia driver

Understanding the Coverage: What are the protection benefits?

Motor personal accident insurance or more commonly known as Driver’s and Passengers Personal Accident (DPPA) insurance is a layer of security for your personal life in case an accident occurs while you and your loved ones are travelling on the road.

Based on 2016 statistics from the Malaysian Institute of Road Safety Research (MIROS), there were more than 500,000 accidents reported involving deaths, serious and minor injuries and this number has been climbing gradually year on year.

Female driver

It is imperative to safeguard yourself and your passengers (between the ages of one and 90) for the potential financial loss in such unforeseen circumstances, regardless of whether it was your fault or not.

Furthermore, there are other special benefits like cash hospital income allowances that compensate your income shortfall during your absence from work or business. If an accident victim is severely injured, he or she would be confined to the hospital resulting in a halt in his or her income. As a result, the growing expensive hospital bill and loss of livelihood can bear a heavy toll on family dependents.

Other perks include greater towing limits and multiple times of indemnity in the event of accidental death and permanent disability. What this means is that the benefits afforded to you can be doubled or tripled during festive seasons or public holidays, depending on the provider.

Here’s an added bonus! Fixed percentage bonus increments are available for annual policy renewals where you would earn extra insurable limits for the same annual premium paid. In plain English, you will pay less for the same benefits each year upon renewal!

I’m confused,isn’t there car insurance?

Yes there is, and it is different. Here’s what you need to know.

Car crash

Car insurance is a policy that covers property damages and personal liability incurred on a third party’s car and/or the insured’s own car (depends on the motor policy chosen) resulting mainly from collision, fire and theft. In short, it is protection for only your car, and not the passengers.

Imagine this. When your car is smashed and you’re lying on a hospital bed with a pair of broken legs, you know that damages to your car can be covered by your comprehensive motor insurance. However, there will also be extra expenses incurred for the medical treatments you will be receiving. Here’s where DPPA comes in.

| See also: Should You Stick with or Switch Car Insurance Providers? |

Wait, does it mean I’m at risk and I can’t do anything about it?

No, you can do something about it!

You can transfer accidental risk to insurance companies by covering yourself with a personal accident plan. There are two main types of DPPA plans available in the market. The first is a coverage that you add on to your basic car insurance plan, whereas the second is a standalone policy which you can purchase separately.

Check out the differences below:

DescriptionOptional CoverageStandalone Policy
How does it work?Value-added coverage on top of the basic motor planSeparate individual insurance plan from the basic motor insurance plan
Provider optionsSame as your car insuranceAny other insurance companies
Basic coverages
  • Accidental death
  • Permanent disablement
  • Medical expenses
  • Accidental death
  • Permanent disablement
  • Medical expenses
  • Ambulance fees
  • Hospital income
  • Funeral expenses
  • Corrective cosmetic surgery
  • Other inconvenience allowances
Benefit limitsLower with limited plan options:
RM75,000-RM175,000 per car
Higher with a wide range of plan options:
RM10,000-RM250,000 per pax
Special benefits
  • Maximum double indemnity during nationwide public holidays
  • Maximum triple indemnity during nationwide public holidays
  • Special unlimited towing limits
  • Renewal bonus up to 50%
  • Extended coverage up to 2nd car at discounted premium
Annual premiumsAs low as RM15 or complimentaryRM50-RM635 (five-seater private car)
EligibilityCar owners aged 17 years and aboveCar owners aged 17 years and above

Accidents happen. A significant personal injury or a severe car accident will burn a massive hole in your wallet due to expensive hospital bills, not to mention recovery time involved.

Happy family

The right DPPA insurance plan can help you prepare for the mishaps you and your passengers might encounter. It’s a core necessity for all car users and an important policy that we are seldom unaware of. Just remember this: car insurance is for cars, motor personal accident coverage is for the driver and passengers.

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