Individuals can buy personal accident insurance if they want to protect themselves against particular misfortunes. People usually insure against the risk of harm from fire, burglary, or accidental damage to their motor vehicles.
Property used by commercial businesses, such as factories or office machinery, is often insured not only for its replacement value but also for potential loss of profit resulting from its being damaged or destroyed.
Personal accident insurance can also be obtained. In the example of a passenger being injured when the driver of a car suffers a heart attack and crashes, such insurance would provide compensation.
However, insurance schemes contribute a surprisingly small proportion to total annual compensation payments - around 5%.