How much trauma cover?
All insurance sums insured are supposed to be based on the concept of indemnity. Too much and we create hazards, too little and we have shortfalls.
The principle of indemnity is reasonably clear in most of the methods of calculating life, total and permanent disablement cover, and income protection. Indeed, with income protection (including mortgage protection as part of a package), insurer’s experience is such that none offer full indemnity.
Medical is a reimbursement plan. What’s left is trauma and the challenge on how to set sum insured.
What does indemnity look like for trauma cover? The challenge is that as the benefit is paid on diagnosis, not impact on life, indemnity is not easy to calculate.
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