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Does a Biker Need Motorcycle Insurance or Personal Accident Insurance?

Motorcycle insurance and personal accident insurance - Do you need both?
As a driver or motorcyclist using the roads of Singapore, do you wonder how safe are our roads? Thanks to increased education and awareness, our road safety levels have improved significantly over the years. In fact, road traffic fatality rates have been in steady decline since 2010, and the number of accidents resulting in injuries decreased has also been the lowest in the last five years. Yet, a worrying trend continues to be the number of road accidents involving motorcycles - more than half of the traffic accidents in 2017 consisted of motorcycle accidents, and over one in three people who died on the roads were motorcyclists. This is perhaps a good reason for motorcyclists here to look into having personal accident coverage on top of their motorcycle insurance. Yet, some riders are not too sure if the two types of insurance policies overlap, and if they are wasting money by taking up both. Here, we take a look at the difference between the two and what type of coverage each provides.

Motorcycle Insurance Coverage

Similar to car insurance, there are 3 types of coverage for motorcycle insurance, namely:
  1. Third Party only
  2. Third Party Fire and Theft
  3. Comprehensive
For explanatory purposes, we’ll use the full comprehensive policy as an example of what a motorcycle insurance policy cover. Our comprehensive motorcycle insurance protects against:
  • Damage to your motorcycle caused by an accident
  • Injury to someone else in an accident
  • Damage to someone else’s property in an accident
  • Legal expenses following an accident
  • Damage to your motorcycle caused by fire
  • If your motorcycle is stolen
  • If you crash into something besides a vehicle
  • Damage from flood or natural disasters
As you can see, a motorbike insurance generally offers you financial protection when there are damages to your motorbike, or during an accident if harm/damage is caused to a third party. What about protection for YOU in the case of an accident? That’s where a personal accident plan comes in.

Personal Accident Insurance

Personal accident plans provide policyholders with financial protection in the event of an unfortunate accident. Payouts can either be in the form of a reimbursement basis (such as for medical expenses), or a lump-sum payout, depending on the type of injuries sustained. While different insurers offer various benefits in a personal accident plan, it typically covers the following:
  • Accidental death and permanent disablement
  • Medical expenses for accidental injury
  • Daily hospital cash
The total amount that is claimable per section depends on the coverage limit. Do note that a personal accident plan is different from a health insurance since claims will only be valid if your injuries or medical expenses incurred is due to an accident.

So do I need both insurance as a motorcyclist?

Well, taking into consideration that motorcyclists are considered a vulnerable group in terms of the high occurrence of being involved in a road accident, we’d think so. If you feel that taking up a separate accident plan costs too much, DirectAsia offers a personal accident benefit, as well as a medical expense benefit that you can easily add on to your motorbike insurance. Our medical expense benefit covers you or your named rider for up to S$2,500 and the same amount for your passenger if you or they are injured as a result of an accident while riding your motorcycle. This is unlike a normal personal accident plan where protection only includes the policyholder. In terms of our add-on personal accident coverage, you’ll get up to S$100,000 for death and/or loss of sight or limbs as a result of an accident while riding your motorcycle. This amount is comparative to many basic personal accident plans available in the market, and only costs $64.20 to add on per year. While protecting your asset (motorbike) is important, we think getting the right protection for yourself is even more important! Take action now and ask for a quote for your motorcycle insurance, or call us at 6665 5555 to find out how you can add on one of our customised benefits. .