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Accidents can happen anytime, and it is important to be prepared. Personal Accident Cover in car insurance helps protect you if you are injured in a car accident. It can help cover medical expenses, hospital bills, and even provide compensation for permanent disability or death.
Over 50,000 road accidents happen in India every day, and many people do not have enough coverage for personal injuries. Personal Accident Cover makes sure you are financially protected when accidents happen, which gives you peace of mind.
In this blog, we will explain what Personal Accident Coverage Insurance is, how it works, and why it is a must-have in your car insurance policy.
About Personal Accident (PA) Cover in Car Insurance
Personal Accident Cover in car insurance is an important protection that helps you and your family with money if you get hurt, become disabled, or die in an accident. This cover makes sure you or your family don't face unexpected medical bills or money problems during such difficult times.
By the India Motor Tariff 2002 Act, the government has made it compulsory for all vehicle owners to have a Personal Accident Cover. This is to make sure that people are protected in case of accidents. With Personal Accident Cover, you can focus on getting better or ensure your family's financial safety, without worrying about the costs of an accident.
How Does Personal Accident Cover in Car Insurance Work?
Since January 2019, the rules for buying Personal Accident (PA) cover with car insurance have changed. These changes include:
- If you already have a separate accident policy with a sum of Rs. 15 lakh, you can choose not to buy the PA cover in your car insurance.
- If you already have a PA policy for your car or two-wheeler, you do not need to buy a new PA cover when you get a new vehicle.
These changes make it easier for people to avoid paying for extra coverage they do not need.
Different Types of Personal Accident Cover in Car Insurance
There are four types of Personal Accident Covers. Here is a brief explanation of each type:
1 Accident Cover (for Third-Party)
This cover comes with third-party insurance. It protects the other person (the third party) involved in an accident. If the third-party person dies, there is no limit to the amount the insurance company will pay. If they get injured, the limit for compensation is Rs. 7.5 lakh (as set by IRDAI).
2 Personal Accident Cover for Vehicle Owner
This cover is for the vehicle owner. You can buy this cover with third-party insurance, or it is included by default if you buy a comprehensive insurance policy. The compensation limit for this cover is Rs. 15 lakh.
3 Personal Accident Cover for Paid Driver
This is an optional cover. If you have a paid driver and your car is in an accident, this cover will help pay for any injuries the driver sustains. You need to pay extra for this cover, and the compensation limit is decided based on the Workmen's Compensation Act.
4 Personal Accident Cover for Unnamed Passenger
This cover protects any passengers who are not the vehicle owner or paid driver. If any of these passengers are injured in an accident, the insurance company will cover the cost. This cover is optional, costs extra, and provides compensation up to Rs. 2 lakh.
Benefits of Personal Accident Cover
1 It gives money support for death or disability.
Personal Accident Cover gives financial help if a person dies or becomes disabled due to an accident. This money will help the family manage their daily needs and future expenses.
2 It offers fixed compensation amounts.
The insurance pays a fixed amount based on the type of injury or disability. This means you know in advance how much money you will receive.
3 It provides extra add-on covers.
You can add extra coverage to your car insurance if you need more benefits. These add-ons can be chosen anytime based on your needs.
4 It supports easy online purchase.
You can buy the policy online from your home without visiting an office. It saves time and makes the process quick and simple.
5 It offers an easy and fast claim process.
Claiming Personal Accident Cover is simple and requires little paperwork, and insurance companies give high priority to accident-related claims.
6 It provides extra benefits for special needs.
The policy may give extra help like job support, funeral expenses, or money for education. It can also help pay for home changes or vehicle changes if needed after an accident.
What is Covered Under Personal Accident Cover for Owner-Drivers?
- Personal Accident (PA) cover gives money if an accident causes body injuries, death, or permanent disability.
- The maximum cover amount is Rs. 15 lakh, as fixed by IRDAI.
- If the accident causes death, the insurance company will pay the full amount of Rs. 15 lakh to the nominee.
- If the accident causes permanent disability, the insurance company will pay money based on the type of disability.
The compensation for different types of injuries is as follows:
| Type of Injury | Compensation Percentage |
|---|---|
| Death | 100% |
| Loss of 2 Limbs (Eye, Hands & Leg in any combination) | 100% |
| Loss of 1 Limb | 50% |
| Permanent disability (other injuries) | 100% |
What is Not Covered in Personal Accident Insurance?
Personal Accident Insurance does not give money in these cases:
| Not Covered Situations | Explanation |
|---|---|
| Adventure activities | Injuries during adventure or risky activities are not covered |
| Old injuries | Injuries that existed before buying the policy are not covered |
| Alcohol or drugs | Death or disability due to alcohol or drugs is not covered |
| War | Death or injury caused by war is not covered |
| Outside covered area | Accidents outside the covered area are not covered |
| Self-harm | Injuries caused by hurting yourself are not covered |
| Indirect causes | Death or injury caused indirectly is not covered |
| Pregnancy and childbirth | Death or injury during pregnancy or delivery is not covered |
| Illegal activities | Accidents during illegal acts are not covered |
How to Claim Personal Accident Cover?
A claim can be made by the car owner/driver or the nominee. Follow these simple steps to file a Personal Accident Cover claim:
- Step 1: Tell the insurance company about the accident as soon as possible and explain what happened.
- Step 2: Get a FIR and then a Final Report (FR) from the police. These papers are very important for the claim. If possible, collect witness detail
- Step 3: Fill in the claim form given by the insurance company. Share photos of the accident if you have them.
- Step 4: Upload all required documents online and wait for the insurance company to check them.
If the owner-driver dies, the nominee will file the claim, and the insurance company will pay the amount according to the policy.
Conclusion
Personal Accident Cover in car insurance is a simple but very important protection for every car owner. Accidents are unpredictable, and even a small incident can cause serious injury, disability, or loss of life. This cover makes sure that you or your family do not face financial stress during such difficult times.
In short, Personal Accident Cover helps you stay protected, prepared, and financially secure whenever the unexpected happens. So if you are looking to compare and buy car insurance online, Square Insurance can help you with this. Get in touch with us to know more.
FAQs
Personal Accident Insurance covers injuries caused by an accident. It gives money in case of death, permanent disability, or serious bodily injury due to an accident.
Yes, Personal Accident Cover is compulsory in India for car owners.
Yes, it is very useful and important. It helps you and your family manage expenses if an accident causes injury, disability, or death.
The car owner or driver can file the claim. If the owner-driver dies, the nominee can file the claim and receive the money.
Yes, you can easily buy it online. It is quick, simple, and does not require visiting an insurance office.
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