I Recently Had a Major Car Crash. What Happens Under My Life Annuity Policies?

Every year, well over 20,000 Australians are seriously injured in a car crash. We tsk-tsk and commiserate over the road toll, which is widely publicized and unarguably tragic ... but the injured are often the forgotten victims of car crashes. If you, or somebody you love, has recently been injured in a car crash, today we look at what's likely to happen with your various insurance policies, from trauma insurance to life insurance.

Term Life Insurance and Car Crashes
If you don't die in a car crash, there is obviously no immediate way to claim on your life insurance policy. While some life policies have a terminal illness clause, where you can receive an early payout if you are given less than 6 months or a year to live, this would only rarely be applicable to those injured in a car crash. Oftentimes there is a clause stating that early payout is only available if you receive a 'terminal' diagnosis from the life insurance company's doctor, and you will not survive past a certain length of time.

Income Protection Insurance and Car Crashes
Your ability to claim on your income protection insurance policy will depend on the nature of your injuries and the particulars of your policy.

For example, if you are involved in a car accident and are unable to work due to the nature of your injuries, you would most likely able to claim on your income protection insurance policy. However, if you do not suffer any injuries, or minimal surface injuries and can still work, it is unlikely that you would be able to make a claim.

Trauma Insurance and Car Crashes
There are few events in life more 'traumatic' than a car crash ... however, trauma insurance policies define their events in terms of the medical diagnosis rather than their psychological effect. It will depend on your particular injuries as to whether you can get a trauma insurance payout; some covered conditions that could result from car crashes include:

• Coma
• Loss of limbs
• Loss of sight
• Paraplegia/Quadriplegia
• Loss of capacity for independent living

Compensation and Car Crashes
Remember that all drivers pay compulsory insurance as part of their registration fee, to insure against causing somebody else injury while driving their car. You should also apply to the Road Safety Commission, Transport Accident Commission / Roads and Traffic Authority in your state to see what compensation might be applicable if you're injured in a car crash, even if you don't have any trauma insurance or income protection insurance.