Sunday, July 05th 2020

Fundamental Principles In Every Insurance Cover

  1. Utmost Good Faith – The Contract of Insurance requires not only from the Insurer but also from the Insured the observance of Utmost Good Faith or Uberrimae Fidae. Both parties must disclose conditions affecting the risk and other material facts, as such shall be the basis of the agreements of the contracting parties. Failure of either party to declare in utmost good faith may avoid the contract.
  2. Insurable Interest – It is the relationship of the Insured to the thing that is subject of insurance, where the former would suffer loss, pecuniary or otherwise, in case of loss.
  3. Indemnity – The obligation of the Insurer to make good any loss or damage which the Insured has incurred, provided the cause of loss or damage and the thing are covered in the contract of insurance, within a given period of coverage.
  4. Subrogation – It is the substitution of the Insurer to the rights of the Insured after the former has paid or settled, in whole or in part, the supposed obligation of the latter to a third person.
  5. Premium – It is the consideration being required by the Insurer for undertaking to indemnify the Insured against loss, damage or liability arising from unforeseen, unknown or contingent event.
  6. Proximate Cause – It is the Responsible Cause of an event or happening. That cause, which, in natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result event or result would not have occurred.

What is Personal Accident Insurance (PA)


Personal Accident Insurance is that line of insurance that provides monetary compensation for loss of income and medical expenses brought about by death or disablement (injury) of the insured caused by accident, violent, external and visible means which occurs solely and independently of any other cause.

What is an Accident?

An Accident is an event which is:





Kinds of Losses

  1. Direct Losses

a. Accidental Loss of Life
b. Accidental Loss of Limbs or Sights

       2.  Indirect Losses

a. Loss of Income
b. Medical Expenses

Common Coverages and Benefits

  1. Accidental Death
  2. Dismemberment/Disablement either Total or Partial; Temporary or Permanent
  3. Weekly Indemnity
  4. Accidental Medical Expense Reimbursement
  5. Accidental Burial Expense
  6. Lump Sum Death Benefit (principal sum)
  7. Accidental bodily injury resulting in death
  8. Death occurring within 180 days from date of accident

Why Accident Insurance Policy

  1. Low premium, higher limits
  2. No medical examination, signed application form
  3. Immediate cover/protection
  4. Strait forward policy
  5. Valued policy, no deductible, no depreciation, insured gets exact amount of insurance

NOTE: As your Broker, we could design PA Packages, Standard or Specialty Cover, based on your requirement.

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