Is personal accident cover compulsory for car insurance? Know the facts

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It is imperative that every vehicle owner with a valid license has personal insurance coverage for their own safety.

IRDAI (Insurance Regulatory and Development Authority of India) in January 2019 unbundled personal accident (PA) cover from motor insurance policies. The aim of the move was to reduce the overall cost of owning a vehicle, as previously IRDAI had increased the amount of mandatory AP cover from Rs 1 lakh to Rs 15 lakh which would have been a burden for many vehicle owners.

In line with the IRDAI mandate, you can now choose to take out a separate “compulsory personal accident cover” policy to cover you against accidental risks, while driving your own vehicle. This car insurance policy can be taken out for any type of vehicle, such as a passenger car, a taxi, a two-wheeler and commercial vehicles (trucks, buses, etc.).

Visit the official IRDAI website for more details.

In India, it is mandatory for all car owners to have PA coverage. This coverage is very essential. It must be purchased whether you are purchasing a liability only policy or a comprehensive policy for your car coverage. Not owning a stand-alone PA cover could result in legal action being taken against you.

According to the India Motor Tariff 2002, PA cover is issued compulsorily with every motor insurance policy. It is granted within the framework of the multi-risk policy and the civil liability policy only.

Personal accident insurance provides you and your family with security and safety in the event, as the name suggests, of an accident. It helps reimburse all your medical expenses after an accident and compensates the candidate in the event of disability or death.

In the event of accidental death, PA insurance provides up to 100% of the sum insured in the event of an accident resulting in the disability or death of the insured. Physical disabilities, permanent or temporary, can lead to a loss of income for the family of the insured. Keeping this in mind, the policy provides compensation based on the disability that has occurred.

* Terms and conditions apply



Coverage scope

The extent of AP coverage depends on the benefit chosen by the insured. For basic coverage, it only includes death. For broader coverage, it includes death, total permanent disability and partial permanent disability. For full coverage, it includes death, total permanent disability, partial permanent disability and temporary total disability.

* Terms and conditions apply

Factors to keep in mind when getting PA coverage

You should pay attention to the following snippets while getting PA coverage. The policy’s coverage should cover all day-to-day activities that could lead to accidents at home or in the workplace. It should cast a wide net of coverage. Pay attention to the claims history of the insurance company you wish to purchase the policy from. AP coverage must include accidental death, broken bones, permanent disability, and accidental burns. In addition, he must also provide for ambulance costs and hospital money. Some policies also offer protection for your trips abroad. Pay attention to the amount received by the candidate in the event of PA resulting in death or permanent disability.

Natural death and death due to illness, suicide, under the influence of intoxicants, criminal intent, war and pregnancy are not covered by a PA plan.

* Terms and conditions apply

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

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