Saturday, May 18

What is Personal Accident Cover in Motor Insurance?

Road accidents often get nasty. In some cases, the cars are totalled to the point there is no repair. The only way is to salvage it. In such severe accidents, apart from damage to property, one can sustain serious injuries; some injuries to the point that leaves a person disabled for life.

These kinds of injuries are not only mentally devastating, but often lead to loss of livelihood in a few cases. Keeping in mind these kinds of accidents that take place in the country, it is mandatory to have a motor insurance policy. These motor plans have a compulsory extension in the form of personal accident (PA) cover. Whether you buy a third-party or comprehensive plan, personal accident cover is a mandatory component for the owner-driver.

As per regulation, every vehicle registered in the country needs to have at least third-party car insurance. Third-party insurance plans offer benefits to another person in case of an accident or injury.

Following are the benefits provided under third-party motor insurance plans-

  • Compensation without any limit in case of injury to life or disability or death.
  • Property damage is covered up to ₹7,50,000.
  • Personal Accident cover for the owner-driver, paid drivers or employee or passengers.

Do personal accident covers include any injuries caused to the driver?

Third-party insurance covers can be enhanced for a nominal premium to avail PA cover. Here, in case of an accident, the insurance company shall pay a pre-decided amount to the driver.

But there are a few conditions that need to be remembered when filing a claim using PA cover –

  • The car insured must be registered in the name of the owner-driver.
  • The policyholder shall be the owner-driver in this case.
  • The owner-driver must have a valid driving license.

Only if the above conditions are fulfilled, you can make a claim for personal accident cover in case of third-party car insurance plans. The requirements are similar in the case of private and commercial vehicle insurance.

Now you may contest, what in cases where a driver is appointed? Will the PA cover be available for such drivers too?

As per the Workmen’s Compensation Act, 1923, you are liable to pay compensation for an employee in case of an injury at work. The insurance companies identified these cases and have made available an ‘accident cover for drivers’ too. At a nominal fee, this PA insurance cover can be opted to insure your driver as well.

Now you may think other passengers are travelling with the driver. What about them? Can they also be covered under a personal accident policy?

Yes! Passengers in your vehicle can also be insured using a PA cover. This add-on is called ‘Personal Accident cover for unnamed passengers’ and this cover for passengers is available in multiples of ₹ 10,000 which goes up to ₹ 2,00,000.

Here is a summary of the different accident covers that can be bought –

Policy type Persons insured Can be included in which policy?
Accident Cover Third-party individuals Third-party motor insurance plans
Personal Accident Cover Owner-driver Comprehensive motor policy or compulsory cover in third-party plans
Personal Accident Cover for drivers Paid drivers Optional add-on for comprehensive or third-party plans.
Personal Accident cover for Unnamed Passengers Passengers in the vehicle Optional add-on for comprehensive or third-party plans.

To conclude, whether you buy a comprehensive plan or third-party policy, do not forget to top-it with accident covers. They go a long way in ensuring financial as well as mental peace for the driver as well as passengers. At your next car / bike insurance renewal, remember to check for your motor insurance policy for coverage available. Stay insured and stay safe!

If you’re just starting out with your first car, then comprehensive cover over here is probably the best option for you because it’s cheaper than third party cover and will provide more protection in case of an accident or theft.