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Accidents are unfortunate in nature and can happen anytime, causing hurt to you, third party person, pedestrians or property. Accidents can sometimes even lead to loss of life or permanent disability, causing great distress emotionally and financially. Car accidents are quite common these days as people generally don’t abide by the traffic rules. As per a report, over 1,214 road accidents occur in India every day.
India tops the world when it comes to road accidents, ranking number 1 based on the number of people killed and number 3 as per the number of persons injured in road accidents. In the year 2020, the fatalities stood at 69.80% for people aged between 18-45 years. Considering the rising number of accidents, a personal accident insurance policy offers complete coverage to the owner-driver in case of any fatalities arising due to an accident.
While loss of a life can cause great distress to one’s family, it can also cause problems if the driver gets injured or becomes permanently disabled. At such times, a personal accident cover can be of great help. A personal accident cover under a motor insurance policy offers financial assistance to you and your family in case of death, disability or hospitalization caused due to an accident. From the yer 2019, IRDAI made it mandatory for vehicle owners to own a personal accident cover upto the sum insured of Rs. 15 lakhs.
CPA cover can be opted along with a car insurance policy, irrespective of whether you are opting for third party cover or comprehensive cover. The compulsory personal accident cover is issued in the name of the vehicle owner who possesses a valid driving license. This type of cover is mandatory to purchase when you buy motor insurance.
A personal accident cover provides coverage in case of death, disability or bodily injury caused to the owner-driver. The coverage is offered only in case of an accident, providing compensation for both accidental death or permanent disability.
Compensation provided under personal accident cover
Given below is the percentage of compensation provided by the insurance company.
PA cover does not provide coverage in case of the following:
When in danger, it is best to stay prepared with insurance as it offers financial protection in times of distress. Overall, driving through traffic heavy roads in tough weather conditions can be quite stressful. Without any fault of yours, you might end up getting hurt and sustain injuries. Any unpredictable event such as a speeding vehicle can come over and take the lives of many.
At such times, it is best to stay prepared as such events can cause permanent disability or even loss of life in some cases. The probability of an accident cannot be determined and hence buying a PA cover to stay protected during such times becomes a necessity. Under this cover, owner-driver receives financial aid in case of an accident so that they don’t have to bear any out of the pocket medical expenses.
Under the Motor Vehicles Act, 1988, third party insurance cover was mandatory. But due to an increasing number of claims for bodily injury or property damage were higher. Apart from third party claims, even personal accident cases required attention due to which this cover was made mandatory. IRDA made it mandatory for vehicle owners to purchase this cover as it offered protection in cases of accident, covering bodily injury, disability and even death.
Effective from 2019, it is important for the owner-driver to own a standalone PA cover with a sum insured of Rs. 15 lakhs
In case of purchase of a new vehicle, if the owner-driver already has a PA policy for his existing two wheeler or four wheeler then he did not purchase a seperate PA cover for the new vehicle
An accident is an unpredictable event and a PA cover can protect you against it by providing you with required financial coverage. Here are few other benefits of CPA cover
In case of permanent disability, financial support is offered to the policyholder to make up for the loss of income
Coverage for hospitalization expenses in case of injury caused due to an accident
In case of death due to an accident, financial support is extended to the surviving members
The claim for PA cover can be filed either by the owner driver or by the surviving members of the family in case of death due to an accident.
Below steps need to be taken to file claim for PA cover
Yes, it is mandatory to purchase personal accident cover with a car insurance policy.
No, purchasing 2 seperate PA covers for two cars is not necsarry. It is necessary to ensure that the PA cover is associated with you as an individual and not your vehicle
No, buying separate PA cover for car and bike is not required
Yes, a PA cover is applicable only for the owner-driver of the vehicle
Yes, you can buy standalone personal accident cover along with your car insurance policy
You can purchase PA cover online or offline at the time of insurance cover purchase or renewal. It does not come in built with comprehensive or third party car insurance and you have to purchase it as a separate add-on