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Importance of Trauma Insurance

An insurance policy that helps people to pay for the treatment and other expenses caused by any sudden serious physical or mental injury that can keep them out of work for long time is called trauma insurance. The amount is paid out by the insurance company and it is defined in the product disclosure statement (PDS). But, before the amount payment, the insurance company will examine the case. If the case gets qualified, the medical reports and other papers have to be submitted for proving the conditions that meet the medical trauma. And, after around 14 to 15 days the payment will be made, but that too varies from company to company. Different companies cover different types of medical conditions under trauma insurance. And, paying extra amount for insurance can add extra conditions in the policy. The medical conditions covered include Alzheimer’s, angioplasty, tumor of the brain, blindness, cancer, cardiac arrest, coma, deafness, dementia, kidney failure, liver disease, loss of limbs, loss of speech, organ transplant, Parkinson’s disease, muscular dystrophy, head trauma, HIV and hypertension. The amount of money to be received from insurance company depends on the traumatic condition, and generally, more money can be received if the nature of medical condition is more serious.

Insurance policy that covers the business interruption of the policyholder whether temporarily or fully due to fire, earthquake, flood, tornado, hurricane or any other natural calamity is called loss of income insurance. This policy may also refer to personal insurance providing income to a policyholder due to long-term illness or any disability. This insurance policy also provides normal profit and expenses based upon prior history of the business to get the business back to the point where it was prior to the loss. The reason for shutting down the business should be covered as per the policy terms and conditions. Loss of income insurance policies also includes the insurance cover triggered by mechanical or equipment breakdown. The insurance companies analyze the catastrophic scenarios that affect the business and make sure that the amount for the loss of income protection is covered.

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The loss of income protection insurance policy costs varies from company to company. By paying the benefits, this insurance scheme helps the policyholders who are unable to work due to illness or accident. The benefit limit can be up to 70% of the gross earning, but any state benefits or the benefits from other policies may reduce the maximum benefits under this scheme. And, generally income protection insurance policy will be valid only if the policyholder is a permanent resident in the area defined by the policy. Many policies allow cover for the holiday vacations and temporary residences outside of these defined areas.

Work cover insurance policy is meant for workers to cover accidents and injuries at the time of work. This scheme provides wage replacement and medical benefits for employees who get injured in the course of employment. This policy do not cover issues related to general damages for pain and suffering, and punitive damages for employer negligence.