Budget Direct has introduced personal accident insurance of up to $400,000, with the first 60 days of cover offered free.

AIG Australia will underwrite the product, which requires no medical tests and has no cancellation fees.

It will be cross-sold with other types of cover, according to GM Partner Products Antony Dunstan.

“We are actively offering this product to motor and home insurance customers in our contact centres and online,” he told insuranceNEWS.com.au. “In the first few days since launch the take-up rate has well exceeded expectations.”

Lump sums will cover a range of accidents, providing benefits such as home renovation, retraining and education, Mr Dunstan says.

“Benefits are payable on top of any Medicare, workers’ compensation, superannuation, private health insurance or third-party insurance payouts. The cover applies immediately [after] the application is taken over the phone.”

In May Budget entered the private health insurance market with a direct offering underwritten by GMHBA.