Personal accident insurance helps Australians manage income loss and recovery costs after injury, offering financial stability when work is disrupted.

Personal accident insurance provides financial protection if an individual is injured in an accident and becomes temporarily unable to work. It is designed to cover the immediate costs associated with recovery—such as medical expenses, rehabilitation, and lost income—through lump-sum or weekly payments.

Unlike income protection insurance, which offers long-term support for illness or injury, personal accident insurance typically covers a shorter benefit period (up to five years) and is more affordable. It is especially relevant for self-employed workers, contractors, and employees without access to paid leave.

Coverage usually includes:

• Loss of income due to accidental injury (up to 70–85% of earnings)
• Medical and rehabilitation expenses
• Lump-sum payments for permanent disability or accidental death
• Optional extras such as business expense cover or death benefits

However, policies generally exclude injuries caused by pre-existing conditions, criminal activity, high-risk hobbies, or intentional acts.

For businesses, offering personal accident insurance can enhance employee wellbeing and resilience. It helps reduce absenteeism, supports structured return-to-work programs, and contributes to a positive workplace culture. In competitive labour markets, it also strengthens recruitment and retention by demonstrating a commitment to staff welfare.

In short, personal accident insurance is a practical and cost-effective way to protect individuals and businesses from the financial impact of unexpected injuries. It ensures continuity, supports recovery, and promotes a safer, more supportive work environment.