What is the importance of having a personal accident cover in two wheeler insurance?
"Read ahead to know the benefits of having a personal accident cover."
Riding a bike is a lot of fun and thrilling experience. In India, people rely more on two wheelers (motorcycles, mopeds, and scooters) for a day-to-day commute to a nearby distance and workplaces. The young generation of India today, considers the bike as a preferred and convenient mode of transport.
As per statistics, 16.4 million two wheelers were sold in India during 2015-16. And also, there is an alarming increase in two wheeler accident rates along with an increase in industry sales figure. Regardless of strict traffic rules and road safety measures untoward incidents do occur on the road.
Despite the thrill, one cannot avoid the risk associated with the bike riding joy as Indian roads are considered the deadliest. Hence, it is your responsibility to secure yourself along with protecting your ride for the sake of your family. There is saying that “do not think because an accident hasn’t happened to you that it can’t happen.”
Personal accident cover in two wheeler insurance offers compensation for accidental death and bodily injuries to owner or rider. Extra cover can also be availed for pillion rider which is offered as an optional cover. Maximum compensation amount provided is up to 1 lac per head with typically the age limit of 18-65 years, and the cover is applicable across the world.
Some of the comprehensive two wheeler policies have this cover as a built-in feature. Most of the insurance companies offer personal accident cover as an add-on or a rider to the main policy. This cover can be availed at a very lesser or negligible amount of premium, and the same is yearly renewable. Let’s go through some crucial and fundamental features of personal accident cover.
Primary Benefits of Personal Accident Cover
Accidental Death Benefit: Life throws many curveballs at us when we expect them the least. Accidents are one of them which can even lead to death. Premature demise of a person will have a severe impact on the well-being of the dependent family. Accidental death benefit feature extends a helping hand to the dependant family in case insured holding a valid driving license dies in a road accident. Complete cover (100% of total sum assured) offered will protect the family of the rider from a monetary crisis.
Compensation for Disability: Bodily injuries caused due to two wheeler accident can sometimes lead to permanent total disability. This unfortunate situation will majorly impact income earning capabilities and everyday expenses which ultimately hinder happiness of you and your family. Personal accident cover offers total compensation (100% of capital sum assured) to the insured in case of any permanent total disability caused due to road crash. It also compensates in case of permanent partial disability and temporary disabilities up to the specified limit.
Daily Hospitalization Cash Benefits: Some of the policies provide daily cash benefits in case the insured rider is hospitalized due to accidental injuries. This benefit can be offered for the maximum of 50 days of hospitalization.
Round the Clock Claim assistance: Almost all general insurance companies provide 24/7 roadside and claim assistance which makes the process hassle free and quick.
Exclusions under Personal Accident Cover
Every product comes with some or the other restrictions and limitations. Here are some of the limitations of personal accident cover.
- Accidental death or injury caused due to consumption of harmful drugs or alcohol
- The death or bodily injury caused by a purposive and deliberate act of insured rider.
- Death or injury resulting from breach of law
However, key areas of cover and definition of terms vary among policies. The extent of protection and level of benefits offered vary from company to company.
On a closure note, we can say availing a personal accident cover along with your two wheeler insurance is as important as having any other term insurance to secure your life. Personal accident cover safeguards you and your loved ones from the financial crisis by offering a comprehensive cover with the small amount of premium. Hence, every two wheeler rider must consider having the personal accident cover as a worthy investment.