Definition of accident insurance and its benefits

Insurance BlogDefinition of accident insurance and its benefits

Accident insurance is a type of insurance that guarantees financial loss caused by an accident, including the risk of permanent disability, death, and health care or hospital treatment due to the accident.

In Indonesia, two common accident insurance programs are Jasa Raharja Insurance from a state-owned company and Work Accident Insurance (JKK) from BPJS Ketenagakerjaan.

Are these two insurances enough for us at this time? Or do we need additional insurance to be safe from various risks? Find the answer in the complete accident insurance review!

Definition of accident insurance and its benefits

Accident insurance is a type of damage insurance that guarantees the risk of permanent disability and death due to an accident. Accident insurance is here to guarantee the cost of treatment according to the risks that the policyholder experiences at any point in the event of an accident.

Accident insurance coverage generally includes:

  • Medical expenses and care due to accidents.
  • Direct treatment of other consequences such as viruses, germs or bacteria as a result of incidents.
  • Providing compensation or coverage to surviving families due to the risk of accidental death.
  • Other benefits regulated by the insurance policy

Jasa Rahaja accident insurance

Jasa Raharja is a social insurance company, which is stated in the Articles of Association of PT Jasa Raharja (Persero) Article 3, Clauses 1 and 2. Economy, social security and national development, especially in the field of public insurance.

Jasa Raharja insures against land, sea and air accident risks. The risks incurred are directed at drivers, public transport passengers with legal and official ticket ownership, as well as traffic users, including pedestrians.

The compensation offered by Jasa Rahaja for the risk of accidents is as follows:

  1. 50 million rupees died in land, sea and air travel.
  2. Maximum permanent disability Rs.50 lakhs.
  3. The cost of hospital treatment is a maximum of 20 million rupees (land and sea) and 25 million rupees (air).
  4. Reimbursement of burial expenses (if the insured has no heirs) 4 million rials.
  5. An additional benefit is reimbursement of first aid expenses up to IDR 1 million.
  6. Additional benefits for reimbursement of Rs.500,000 for ambulance.

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Occupational accident insurance (JKK) BPJS employment

The JKK BPJS Ketenagakerjaan program as accident insurance protects against the risk of accidents that occur in work relationships, including accidents that occur on the way home to work or vice versa, to diseases caused by the workplace.

Contributions or insurance premiums are paid by employers (companies) and job recipients based on a predetermined percentage. The benefits of the government program for accident insurance are:

  1. Health services include care and treatment.
  2. Cash compensation for multiple perils including Temporary Incapacity for Work (STMB).
  3. Disability benefits
  4. Death allowance and funeral expenses
  5. The program is back to work.
  6. Rehabilitation or assistive devices for participants who have lost a limb or lost the function of a limb.
  7. scholarship.

Who is Jasa Raharja and JKK? Do you still need accident insurance?

With the benefits of Jasa Raharja accident insurance and occupational accident insurance from BPJS, is it still necessary to have accident insurance or other life insurance?

One thing that can be noted is that Jasa Raharja insurance has a problem, and that is that it only covers traffic accidents or public transportation. That is, if the incident that occurs is not related to public transportation or an accident occurs, compensation money and other benefits cannot be claimed.

Meanwhile, work accident insurance from BPJS is also limited in terms of scholarship for children’s education. The nominal amount of the scholarship is as follows:

  • Kindergarten to elementary school / equivalent to IDR 1.5 million / person / year, maximum for 8 years.
  • SMP / equivalent to 2 million IDR / person / year, maximum for 3 years.
  • SMA / equivalent to 3 million IDR / person / year, maximum 3 years.
  • Higher education up to S1 or training IDR 12 million/person/year, up to 5 years.

BPJS Health includes many benefits, but you can still complete them. Learn more about additional BPJS protection here.

With limited benefits or coverage of two types of accident insurance, personal accident insurance that can be purchased independently can be considered. Some of the benefits of this insurance are:

– You can choose one or more protections you want – You are free to adjust the protection and insurance amount according to your budget and needs – There are various additional protections that you can choose according to your lifestyle such as protection for extreme sports and accidents caused by two-wheeled vehicles.