Once you have made a successful application you would hope never to have to make a claim on your Accident and Sickness (AS) policy. However, regrettably over 2 million people a year are absent from work for 6 months or more due to illness or injury. An AS plan will ensure that, should you be off work for a period of time, there is financial help forthcoming. If you were ever to be in this situation there a several points you should be aware of when putting in a claim:
Deferred Period
You should be aware of the deferred period that you agreed to with your provider, at the time of applying. This is the period of time that you are required to be unable to work, due to illness or injury, before you can receive your AS benefit. For example, a deferred period of 30 day back to day 1 means you will need to be absent from work for a minimum of 30 days before then you benefit will be payable from day 31 back dated to day 1.
Claim Form
In order to physically make a claim you will need to obtain a claims form from you AS provider. The claim form is generally made up of 3 sections;
- Personal details – when contacting the provider the administrator will take some details from you and these will already be on the form. These need to be checked for accuracy ensuring that your policy number is also correct.
- GP – your doctor will need to complete, sign and stamp this section certifying your absence and the condition.
- Mortgage – if your AS plan is in relation to your mortgage then evidence that your payments are up to date with no missed months will need to be provided. Should any payments not be up to date or missed within the previous 12 months the claim will be void.
- Income – if your AS plan is based on income rather that mortgage then your employer will be required to complete this section to confirm your earnings. Your provider will normally only take in to account your basic salary not any overtime, bonuses etc.
Non-disclosure
If you failed to disclose any relevant information during your application process and this comes to light during your claim process then the AS benefit may not be payable. Any pre-existing conditions are not covered it they have occurred in the 12 months prior to your application.
Submission of Claim
You should expedite your claim promptly. You normally have only up to 60 days, from your 1st day of absence, to inform your provider about your condition. In most cases an insurance company will encourage you to contact them for a claims form at your earliest convenience to ensure that an initial file can be set up. This will also aid the speed of processing of your claim.
If you need to make a claim the key points listed should hopefully lead to an efficient processing of your benefit.
Accident and sickness insurance is also sometimes known as unemployment insurance. It is a process through which a policy holder receives assured financial support if he loses his job or source of income because of involuntary and sudden accident and sickness. This type of insurance also makes sure that until and unless the insured person manages to look out for another source of employment, his financial requirements are met.
The accident and sickness cover is usually offered for a period of 12 months that implies that a person will be able to enjoy its benefits for only one year from the time he loses his source of earning. There are some insurance companies that may offer accident and sickness insurance for a longer period of time. The premium rate of such companies can be higher than the others.
So, how do you decide if you are eligible for accident and sickness insurance?
You will be eligible for accident and sickness insurance if:
- You have lost your job because of economic downtown or low productivity
- If you are not able to work because of some injury
- If you have paid all your premiums and continue the same during your claim period
- If you have been unemployed for six months or more before filing the claim
- Is seeking a job actively and has a proof of this
The accident and sickness insurance mainly provides 3 types of insurance: mortgage protection insurance, salary protection insurance, and rental payment insurance. Here is some more information on these insurance types
Mortgage protection insurance:
The main aim of this insurance type is to secure the monthly repayments to the lenders.
Salary protection Insurance:
the money that one gets from this policy is free of tax deduction. It covers living expenses and usually the policy holder is able to get higher payout as compared to its mortgage insurance plan. The premium paid for this type of insurance is higher than the other covers but policy holders get up to 50% of their regular monthly income.
Rental payment insurance: One can become eligible to get rental payments through the income he gets from this policy. It is a very short-term policy.
Points to keep in mind while buying accident and sickness cover:
Many accident and sickness policies come with a waiting period before which one cannot file a claim. This waiting period can range from a month to one year. The longer a policy makes you wait the cheaper it is.
Claims for your accident and sickness insurance can only be made if the policyholder has been redundant compulsorily or was unaware of such situation before buying the policy.
You cannot file a claim if you choose for resigns, voluntary retirement or are chucked out of the work because of misbehavior.
After the time period of the insurance cover, one has to search for alternate means of earning income like social security, if he hasn’t been able to locate work within his policy period.
Buying accident and sickness insurance:
Purchasing accident and sickness insurance is easy. There are so many companies offering this type of insurance cover online. You can ask for quotes online and make a wise selection by picking the policy that suits all your needs the best.
