One type of insurance

Accident insurance is a type of insurance, which aims to create financial security when an insured person suffers a personal injury. Accident insurance is, by its nature, an individual insurance policy which aims to compensate injured parties or to the members of their families in respect of an accident resulting in death, temporary loss of employment, permanent disability or otherwise personal injury. Accident insurance is usually sum insurance, but it can also be non-life insurance[1]

Voluntary or compulsory insurance

In some cases, accident insurance is compulsory insurance, but most often it is insurance that can be purchased freely from an insurance company. Examples of voluntary accident insurance include general accident insurance and vacation accident insurance, which is usually part of family insurance.

Examples of accident insurance

Examples of accident insurance, which is compulsory to purchase, are accident insurance for the driver, according to the current Article 92 of the Traffic Act no. 50/1987 and accident insurance according to collective agreements, e.g. accident insurance for employees and seafarers. Accident insurance is diverse but all serve the same purpose, i.e. to compensate the injured party, to some extent, for the financial loss he has suffered as a result of an accident. Driver's accident insurance is an example of compulsory accident insurance which largely has the characteristics of non-life insurance.

[1] In the case of sum insurance, the amount insured is predetermined without regard to actual financial loss. Non-life insurance does not have a predetermined amount of insurance; rather, the insurance compensates for the actual financial loss of the injured party.