Medical Coverage - Understanding your insurance policy

[Parker_Woodruff]

Hello MooneySpace - in today's sponsored post, I'll explain the coverage afforded by the Medical coverage on aircraft insurance policies.

-What is Medical Coverage?

Medical Coverage, also known as "Medical Expense" and "Medical Payments", is provided regardless of who is at fault in an occurrence.  On most piston aircraft insurance policies, the coverage limit is between $3,000 and $10,000 per person, but can be as high as $100,000 per person on a pro-flown turbine aircraft insurance policy.  This coverage is normally provided for no charge or a small charge, depending on the insurance carrier.

Medical coverage is different from Bodily Injury Liability coverage in that no judgement or settlement must be reached for reasonable medical expenses to be paid to the injured party.  The policy holder also does not have to admit fault or liability for the coverage to apply.   Medical Coverage is also provided to the aircraft owner and any crew member flying the aircraft.

 

What kinds of expenses does Medical Coverage pay for?

Fees for doctors, surgeons, and dentists; Costs for ambulance, x-ray and hospital services; Fees for professional nurses; Costs for prosthetic devices. Funeral expenses if the passenger dies within a predetermined time from the occurrence.

Keep in mind that this can be used toward the deductible on your health insurance policy.

 

What are other benefits of Medical Coverage?

- The biggest benefit of Medical Coverage is that it is money that can be used in good faith which can help avoid an injured party deciding to sue for bodily injury.  It helps the policyholder meet the passenger's immediate needs in the event of an occurrence.  Think about the goodwill that is formed when the policyholder can volunteer several thousand dollars to meet an injured person's immediate needs.

- The coverage includes You, the owner pilot.

Can I buy increased limits of Medical Coverage?

Yes, most policies these days will have $5,000 per person as the standard limit.  Most companies will offer a limit of $10,000 per person for a modest charge (About $40-80).

 

Stay tuned for my next article on Passenger Voluntary Settlement coverage.

Please feel free to reach out with any questions.

 

Parker Woodruff

Airspeed Insurance Agency

214-295-5055

Parker@airspeedinsurance.com

[carusoam]

This one confuses me each time I review aircraft and automobile policies... lately it came up when a family member had purchased a motorcycle...

How much aircraft insurance should I buy if I already have health insurance for general purposes?

 

Since a simple hospital stay can cost 100amu for each person in the plane...

What do I need to check?

Thanks Parker!

Best regards,

-a-

 

[RobertGary1]

Who benefits from this coverage

This coverage benefits your health insurance company. It does not reduce your copay or contribute or your deductible.  The hospital will bill this directly within 4 days of an incident and will apply it toward what is billed to your health insurance company.  You will never be able to claim this yourself as the hospital will drain this coverage before you can request it.

I've had several claims agents repeat this to me and I keep asking them why they don't tell people on the sales side about this.

-Robert

Edited September 17, 2019 by RobertGary1

[Parker_Woodruff]

3 hours ago, carusoam said:

This one confuses me each time I review aircraft and automobile policies... lately it came up when a family member had purchased a motorcycle...

How much aircraft insurance should I buy if I already have health insurance for general purposes?

 

Since a simple hospital stay can cost 100amu for each person in the plane...

What do I need to check?

Thanks Parker!

Best regards,

-a-

 

If you have health insurance, look at the max out of pocket you can incur.  Then determine how much you want to self-insure for your flying-related risk.

As mentioned, it goes a long way toward the good-will of those onboard your aircraft.

Just be sure to have plenty of liability coverage for bodily injury and property damage.

[Parker_Woodruff]

1 hour ago, RobertGary1 said:

Who benefits from this coverage

This coverage benefits your health insurance company. It does not reduce your copay or contribute or your deductible.  The hospital will bill this directly within 4 days of an incident and will apply it toward what is billed to your health insurance company.  You will never be able to claim this yourself as the hospital will drain this coverage before you can request it.

I've had several claims agents repeat this to me and I keep asking them why they don't tell people on the sales side about this.

-Robert

There have been many court cases about this.

The policyholder has can claim what is contractually allowed from the insurance policy.  A state-licensed adjuster will handle any local ins-and-outs as necessary.

Keep in mind that your deductible and max out of pocket is a self-insured portion for which you are allowed to pursue recovery.  Therefore, the health insurance company does not have first right to every medical payments claim.  The insurance company certainly has a right to any amount above your actual expenses.

[RobertGary1]

3 minutes ago, Parker_Woodruff said:

There have been many court cases about this.

The policyholder has can claim what is contractually allowed from the insurance policy.  A state-licensed adjuster will handle any local ins-and-outs as necessary.

Keep in mind that your deductible and max out of pocket is a self-insured portion for which you are allowed to pursue recovery.  Therefore, the health insurance company does not have first right to every medical payments claim.  The insurance company certainly has a right to any amount above your actual expenses.

The insurance company just says "We received a bill from the hospital and paid it on your behalf". That reduces what your  health insurance company is billed but not your deductible or copay.

-Robert