20 Personal Accident Insurance Quiz Questions and Answers

Question 1:
What does personal accident insurance typically cover?
A. Routine medical check-ups
B. Accidental death and disability
C. Property damage from accidents
D. Theft of personal belongings

Answer: B
Explanation: Personal accident insurance primarily covers unforeseen accidents leading to death, disability, or injury, providing financial protection against such events, unlike routine health or property-related coverages.

Question 2:
Which of the following is NOT usually covered under personal accident insurance?
A. Permanent total disability
B. Temporary partial disability
C. Pre-existing medical conditions
D. Medical expenses from an accident

Answer: C
Explanation: Personal accident insurance excludes pre-existing conditions, as it focuses on new accidents; coverage is for sudden events, not ongoing health issues.

Question 3:
In personal accident insurance, what does a “lump sum payment” refer to?
A. Weekly benefits for ongoing treatment
B. A one-time payment for total disability
C. Reimbursement for hospital stays
D. Premium refunds if no claim is made

Answer: B
Explanation: A lump sum payment is a single, large amount paid out for events like total disability or death, providing immediate financial relief rather than ongoing installments.

Question 4:
What is the primary purpose of personal accident insurance?
A. To cover everyday health expenses
B. To provide financial support for accidental injuries or death
C. To insure against natural disasters
D. To protect business assets

Answer: B
Explanation: The main goal is to offer compensation for accidental bodily injuries, death, or disability, ensuring financial stability for the insured or their dependents.

Question 5:
Which factor does NOT affect the premium of a personal accident insurance policy?
A. Age of the insured
B. Occupation risk level
C. Color of the insured’s home
D. Sum insured amount

Answer: C
Explanation: Premiums are based on risk factors like age, occupation, and coverage amount, but irrelevant details like home color do not influence pricing.

Question 6:
What happens if an accident occurs during an excluded activity, such as adventure sports?
A. The claim is fully covered
B. The claim may be denied
C. Double compensation is provided
D. Only partial coverage applies

Answer: B
Explanation: Policies often exclude high-risk activities; if an accident happens during such activities, the insurer can deny the claim based on policy terms.

Question 7:
In personal accident insurance, what is “temporary total disability”?
A. Permanent loss of a limb
B. Inability to work for a short period
C. Full recovery with no lasting effects
D. Death due to an accident

Answer: B
Explanation: Temporary total disability refers to a situation where the insured cannot work at all for a limited time due to an accident, typically entitling them to weekly benefits.

Question 8:
How does personal accident insurance differ from health insurance?
A. It covers only mental health
B. It focuses on accidents, not illnesses
C. It includes dental care exclusively
D. It is only for children

Answer: B
Explanation: Unlike health insurance, which covers illnesses and routine care, personal accident insurance is specifically for accidental injuries, death, or disability.

Question 9:
What is a common exclusion in personal accident insurance policies?
A. Car accidents while driving
B. Self-inflicted injuries
C. Slips and falls at home
D. Bicycle accidents

Answer: B
Explanation: Self-inflicted injuries are excluded to prevent moral hazards, as policies are designed for unintentional accidents only.

Question 10:
Who can be the beneficiary in a personal accident insurance policy?
A. Only the insured’s employer
B. The insured’s nominated family members
C. Random individuals
D. The insurance company

Answer: B
Explanation: Beneficiaries are typically family members or dependents nominated by the insured, ensuring financial support reaches the intended parties upon a claim.

Question 11:
What type of benefit might personal accident insurance provide for partial disability?
A. No benefit, as it’s not covered
B. A percentage of the sum insured
C. Unlimited medical coverage
D. Free legal advice

Answer: B
Explanation: For partial disability, insurers often pay a proportional amount based on the extent of disability, calculated as a percentage of the total sum insured.

Question 12:
Why might someone purchase personal accident insurance?
A. To cover travel expenses
B. For protection against income loss from accidents
C. To invest in stocks
D. For tax deductions only

Answer: B
Explanation: It provides a safety net for lost income due to accidents, helping cover daily expenses when the insured is unable to work.

Question 13:
In a personal accident policy, what does “worldwide coverage” mean?
A. Coverage only in the policyholder’s country
B. Protection regardless of location
C. Limited to urban areas
D. Only for business trips

Answer: B
Explanation: Worldwide coverage means the policy applies to accidents occurring anywhere in the world, offering broad protection for the insured.

Question 14:
What role does the sum insured play in personal accident insurance?
A. It determines the maximum payout
B. It affects the policy’s duration
C. It is irrelevant to claims
D. It only covers medical bills

Answer: A
Explanation: The sum insured sets the limit for payouts in events like death or disability, ensuring claims do not exceed this amount.

Question 15:
How is a claim typically processed for personal accident insurance?
A. Automatically without documentation
B. By submitting medical reports and evidence
C. Through social media posts
D. Via a lottery system

Answer: B
Explanation: Claims require documentation like medical certificates and accident reports to verify the incident and assess the extent of injury or loss.

Question 16:
What is an example of a covered event under personal accident insurance?
A. A chronic illness diagnosis
B. A fall resulting in a broken bone
C. Routine surgery
D. Pregnancy complications

Answer: B
Explanation: Accidental injuries, such as falls leading to fractures, are covered, whereas illnesses, routine procedures, or non-accidental events are not.

Question 17:
Can personal accident insurance be added to an existing life insurance policy?
A. No, it must be a separate policy
B. Yes, as a rider or add-on
C. Only for minors
D. It replaces life insurance

Answer: B
Explanation: Many life insurance policies allow personal accident coverage as an add-on or rider, enhancing overall protection without a new policy.

Question 18:
What might increase the risk profile for personal accident insurance premiums?
A. A desk-based job
B. Participation in extreme sports
C. Living in a safe neighborhood
D. Being under 18 years old

Answer: B
Explanation: High-risk activities like extreme sports raise the likelihood of accidents, leading to higher premiums to account for increased claim potential.

Question 19:
In personal accident insurance, what is “rehabilitation benefit”?
A. Coverage for gym memberships
B. Support for recovery, like therapy costs
C. Free vacations
D. Educational grants

Answer: B
Explanation: Rehabilitation benefits cover expenses for physical therapy or other recovery aids to help the insured regain functionality after an accident.

Question 20:
Why is it important to review exclusions before buying personal accident insurance?
A. To avoid surprises during claims
B. To increase the premium
C. To add more coverage options
D. To cancel the policy immediately

Answer: A
Explanation: Understanding exclusions helps policyholders know what is not covered, preventing denied claims and ensuring appropriate protection.