General insurance plans for high-risk activities: What you need to know 4^th May 2019

General insurance is any insurance other than life insurance. There are several types of general insurance, such as fire, marine, personal accident, travel insurance, etc. While defining their policy coverage, insurance companies often categorise a few activities as high-risk activities. They include car racing, bungee jumping, scuba diving, horse riding, construction work, mining, etc.

We usually don’t pay attention to insurance coverage when buying a new policy concerning such high-risk activities. We may get a costly treatment bill if we unknowingly engage in activities that make our insurance null and void. Let us know more about general insurance for high-risk activities.

1. Travel insurance
Travel insurance provides coverage against trip cancellation, baggage, and personal belonging protection, coverage for medical expenses, and accidental death. However, there are several high-risk activities that traditional travel insurance does not cover. They include risky adventure sports such as skydiving, hand-gliding, parachuting, cliff diving, mountain climbing and biking, scuba diving, racing, and base jumping. These activities may give us an adrenaline rush, but insurers usually do not cover them because of the high risk involved in conducting them.

Insurance companies may exclude coverage of accidents for the above high-risk activities and deny compensation when needed. However, a few insurance companies may provide due coverage for such accidents by adding a few riders, such as hazardous sports riders. They will look at several factors such as your age, frequency of indulging in such activity, level of experience, etc. They will calculate the premium accordingly, which will be higher than the regular policies. But it may be worth paying a higher premium for your policy in case you need it in the future.

2. Health insurance
Health insurance companies weigh the risk of providing you insurance coverage according to your occupation. Some occupations are considered highly risky, such as mining and construction. The probability of accidental death or injuries is very high in such professions. Hence, insurance companies may deny providing you coverage or may charge a high premium for issuing you a policy because of occupational hazards.

3. Workmen’s compensation insurance
Accidents at workplaces are inevitable and may result in bodily injuries, partial or permanent disability, or even the death of an employee. Some high-risk professions may cause dermatitis, respiratory illnesses, cancer, hearing or vision loss, stress, and mental disorders.

Employers have a legal liability to pay for the medical treatment expenses of their employees when workplace hazards have caused an illness or accident. Manufacturing, trading, and service setups can buy a workmen’s compensation policy that provides coverage against this liability. It covers the payment for legal compensation to the employees and their dependents when the employee suffers an injury or meets with an accident at the workplace.

Accidental death, permanent total disability, permanent partial disability, and temporary total disability are covered under such insurance policies. We can also buy several add-on covers such as medical extension, terrorism coverage, and subcontractor coverage.

General insurance plans are the solution to cover such risks. We should do thorough research about the general insurance plans that can provide us adequate coverage while we engage in any of the above high-risk activities and professions. Read all the terms and conditions properly, compare the various available options, and choose the general insurance plan that best suits your requirement.

Click HERE to browse different general insurance plans.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.