Is Personal Accident Cover Mandatory For Car Insurance? Know The Facts

The IRDAI (Insurance Regulatory and Development Authority of India) unbundled the personal accident (PA) cover from car insurance policies in January 2019. The purpose of this movement was to reduce the overall cost of ownership of a vehicle, as previously, the IRDAI had increased the compulsory PA coverage amount from Rs 1 lakh to Rs 15 lakh, which would have come as a burden on many vehicle owners.?

As per the IRDAI mandate, you can now choose to buy a separate ‘compulsory personal accident cover’ policy to cover against accidental risks, while driving your own vehicle. This car insurance policy can be bought for any type of vehicle, such as a private car, taxi, two-wheeler and commercial vehicles (trucks, buses, etc.).?

?Visit the official website of IRDAI for further details.

In India, it’s mandatory for all car owners to have a PA cover. This cover is very essential. It needs to be purchased whether you are buying a third-party liability-only policy or a comprehensive policy for your car cover. Not owning a stand-alone PA cover could invite legal action against you.?

According to the India Motor Tariff 2002, PA cover is issued compulsorily with every car insurance policy. It is granted as part of the comprehensive policy and the third-party liability-only policy.?

Personal accident insurance provides safety and security to you and your family, in case, as the name suggests, of an accident. It helps in reimbursing all your medical expenses after an accident occurs and provides compensation to the nominee in case of disability or demise.?

In case of accidental deaths, PA insurance provides up to 100 per cent compensation of the sum insured in case an accident leads to disability or death of the insured. Physical disabilities, permanent or temporary, may lead to income loss for the family of the insured. Keeping this in mind, the policy provides compensation according to the disability that occurred.?

* Standard T&C Apply
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Scope of coverage

The scope of coverage under PA depends on the benefit selected by the insured. For a basic cover, it includes death only. For a wider cover, it includes death, permanent total disability, and permanent partial disability. For comprehensive cover, it includes death, permanent total disability, permanent partial disability, and temporary total disability.?

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Factors to keep in mind while getting a PA cover

You should pay attention to the following excerpts while getting a PA cover. The policy coverage should encompass all the daily activities that may lead to accidents at home or at the workplace. It should cast a wide net of coverage. Pay attention to the claim settlement record of the insurance company you want to purchase the policy from. The PA cover should include accidental death, broken bones, permanent disability, and burns due to an accident. Moreover, it must also provide for ambulance costs and hospital cash. Some policies provide protection for your overseas travel as well. Pay attention to the amount received by the nominee in case of a PA leading to death or permanent disability.

Natural death and death due to disease, suicide, under the influence of intoxicating substances, criminal intent, war, and pregnancy are not covered in a PA plan.?

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.