Accidents do happen. However, some are more severe than others. It is important to plan for what the next steps will be. In the event of an unfortunate accident, Personal Accident Cover will provide financial assistance.
The Insurance Regulatory and Development Authority of India states that if you buy a car insurance policy or bike insurance policy, a Personal Accident Insurance Policy of Rs.15 lakh must be purchased. If you don’t have any existing coverage, this cover will be mandatory. This policy covers you against financial liability in the event of death or disability resulting from a motor vehicle accident.
What is Personal Accident Cover in Car Insurance:
Personal Accident (PA) Cover in Car Insurance protects against the possibility of death or physical disability as a result of an accident. This coverage is available in conjunction with vehicle insurance, which offers financial compensation.
Accidents can leave you permanently disabled. This could result in financial and medical expenses. You can rest assured that you will not be responsible for these costs with personal accident coverage. In the event of death, the policy will pay 100% to the named nominee.
Personal Accident Insurance:
The following coverage benefits are available under Acko Personal Accident Insurance:
- Permanent Total Disability: In the event of total disability, you are entitled to the full amount insured. This payment is made to the insured in the event of an unfortunate accident.
- Unexpected Death: In the event of an untimely death, the entire amount of insurance is paid to the nominee.
Acko will pay compensation according to the following scale for bodily injury or death sustained by the owner-driver.
Nature of Injury Scale of Compensation
Loss of 2 limbs/loss in both eyesight/loss in one limb and one eyeight 100%
Loss of one limb/loss one eyeight 50%
Permanent total disability from any injuries other than those mentioned above 100%
All types of accidents covered
There are basically four types of accident coverage.
What Who is covered? Which Policy? Compensation Limit
Accident Cover Persons or entities of third parties Third-party auto insurance No limit
Personal Accident Cover Owner-driver Comprehensive Car Insurance or Compulsory Third Party Cover Rs. Rs.
Paid driver personal accident coverage Paid drivers Optional coverage in Comprehensive car insurance and Third Party As per Workmen Compensation Act.
Personal Accident cover for Unnamed Passengers Any person riding in the car with the driver Optional coverage in Comprehensive car insurance and Third Party Sum assured up to Rs. 2 lakh.
Why you need personal accident coverage
If you work or travel in an extremely risky area, you may choose to purchase personal insurance. You may find it difficult to make ends meets if you are disabled from work. The PA coverage is an insurance policy that protects you and your family in the event of financial instability. A personal injury insurance policy is a great option for everyone.
Personal Accident Policy Claim Eligibility
This policy provides for compensation to the insured and his/her legal representatives. These conditions apply to this coverage:
- The insured is the registered owner of vehicle.
- This insurance policy names the insured.
- Holder of a valid driving licence listed under Rule 3 of Central Motor Vehicles Rules
Personal Accident Insurance: Premium Rate
In a circular dated September 20, 2018, the IRDAI announced that it would increase the Compulsory Personal Injury Cover (CPA), to Rs.15 million. The premium rate for PA coverage was also set at Rs.750 per annum by the authority. The CPA for two-wheelers and four-wheelers was earlier fixed at Rs.15,000, while it was Rs.25,000 for four-wheelers.
You can increase your sum insured by paying an additional premium. This ranges from Rs.300 to Rs.1,000.
It depends on your car’s model, age, where you live, whether or not your current insurance has expired, and the Insured’s Declared Valu (IDV) for your vehicle. You can also claim the No-Claim Bonus, (NCB), if your existing policy provides it.
Personal Accident Cover Add-Ons:
You can also take advantage of Add-ons to your insurance coverage.
- PA Cover for Paid Drivers, Cleaners and Conductors: With an additional premium, the insurer undertakes to pay compensation for bodily injury suffered by the paid driver/conductor/cleaner who is employed by you and the claim is of the insured vehicle.
- Unnamed Passenger Protection: The insurer will pay the additional premium to cover bodily injury suffered by passengers other than the insured person and the Paid Driver or Cleaner.
The benefits of purchasing personal accident insurance along with car insurance:
This insurance coverage offers many benefits and advantages.
- In the unfortunate event of an accident, financial assistance is available.
- Unnamed passengers, other than the insured, are eligible for an additional premium. The insurer will pay compensation comparable to that of the primary policyholder.
- You may also be eligible to receive compensation for drivers, cleaners, or conductors who are paid by you. The compensation is comparable to that of the insured.
What is covered under the personal accident insurance?
The policy, as mentioned, covers accidental death and permanent total disabilities, such:
- The nominee will receive 100% of the insured sum in the event of the accidental death of the owner/driver.
- In the event of permanent disability, the insured will receive 100% of the amount insured.
- The insured will receive 100% of the insured sum if the owner-driver is blind in one or both eyes.
- The insured will receive 50% of the insured sum if the owner-driver is blind in one eye or limb.
- With additional premium, the insured shall receive the sum insured for your paid driver/cleaner/conductor as well as unnamed passengers.
What is not covered by the personal accident insurance?
The following items are not covered by this insurance policy:
- Self-harming activities.
- Intoxication can cause death or disability.
- Illegal activities can cause death or disability.
- Pregnancy and childbirth: Deaths or disabilities
- Adventure activities can lead to death or disability.
- War causes death and disability
- Pre-existing injuries.
- Death/disabilitys that are not related to the geographic area.
- Directly or indirectly, death/disability.
Owner-drivers are required to have compulsory personal accident (PA) coverage
An insurance policy offering mandatory Personal Accident Cover to protect you (the owner-driver) against death or disability due to an accident is called a compulsory Personal Accident Cover. Owner-driver PA coverage is an optional cover that you must have in addition to your car insurance. Your car is covered by your car insurance policy, while the PA coverage protects you. It covers your medical expenses and provides compensation for death or permanent disability resulting from accidents.
Mr A was struck by a speeding truck, causing severe damage to his car. He also suffered severe injuries including a fractured leg. Doctors advised that he rest in bed until he fully recovered. He will be out of work for one month. But Mr A was not worried. Although his injury was very painful, he didn’t worry about it as he had purchased the mandatory PA coverage for owner-driver.
Car insurance does not cover unnamed passengers.
You can also protect passengers by purchasing Compulsory Personal Injury (CPA) coverage. You can also include your family members, friends, and your paid driver. This add-on can be purchased with Comprehensive Car Insurance Policy.
ACKO offers Personal Accident Cover for Unnamed Passengers to protect your loved ones while they are in your car insured. This is an additional premium amount.
Individual Personal Accident Cover for Owner-Drivers
These are the details of the mandatory PA coverage for the owner-driver.
- Sum insured amount up to Rs. 15 lakhs.
- 100% Compensation in the event of death of an insured due to an accident
- 100 percent compensation for permanent total disability caused by injuries sustained in an accident
- 50% compensation for the loss of one limb, or one eye
Period of mandatory PA coverage
Compulsory Personal Injury (CPA) is only for the driver of the vehicle insured and is not a separate insurance policy. The tenure or period of owner-drive PA coverage is one year. The PA coverage must be purchased when you renew or buy an insurance policy. You don’t need to buy PA coverage for your second vehicle if you have Personal Accident Cover.
Premium for Compulsory PA Cover
For information on the mandatory PA cover premium rates applicable to four-wheelers, please refer to this section. The IRDAI decision is the basis of the premium. The maximum amount insured is covers 15 lakhs.
What if I have a paid driver?
It is a valid point. You are required to compensate employees for injuries or accidents that occur at work under the Workman Compensation Act.
This was understood by insurance companies. Insurance companies understood this need and offered an additional cover, called Accident cover for paid drivers. Additional Rs. As an additional cost, 50 must be paid to purchase Legal liability coverage for the paid driver.
This insurance covers your driver for any injury, disability, or death. This will also protect your driver. The insurance company will pay a specific amount of compensation for any accident-related injuries to the driver or death. The Workmen’s Compensation Act of 1923, Fatal Accidents Act of 1855, and Common Law covers the driver’s legal liability.
What about my family riding in the car?
They can also be covered. You can also purchase an add-on called “Personal Accident Cover for Unnamed Passengers”. This covers your family, friends, and even your colleagues who travel in your car. These add-ons can be purchased with a Comprehensive Car Insurance policy for a small additional payment.
You can choose to be insured for multiples of Rs. 10,000, Rs. 20,000, Rs. 30,000 till Rs. 2,00,000. Add-ons start at Rs. The cost of the add-on will range from Rs. 5 to Rs. 100 per passenger.
Compulsory Personal Injury (CPA) Insurance on ACKO
These are the top reasons to buy ACKO’s compulsory PA coverage.
- Compliance with the law
Legal compliance is the most important reason for CPA insurance. It is mandatory and can lead to penalties if you do not have one.
- Coverage against accidental risks
You are protected against injury and self-harm from an accident with the compulsory PA coverage
- Rs.15 lakhs coverage for accidental death
In the event of your death due to an accident, your dependents will receive Rs.15 lakhs to help them in their future.
- Permanent disability coverage up to Rs.15 Lakhs
You can get Rs.15 lakhs for your treatment or finances if you are permanently disabled as a result of an accident.
- In the event of temporary disability, 50% of the sum insured
You can get up to 50% of your sum insured in the event of temporary disability to help you with your finances and treatment costs.
- No documentation required.
ACKO makes it easy to purchase the mandatory PA coverage online. You don’t need to fill out any paperwork to buy PA coverage.
Accident Covers Are Mandatory
Imagine being stuck in traffic, late for work. The jam is caused by a young driver arguing with another car driver over an accident.
The car had inflicted serious injuries on the elderly uncle of the young man. These injuries could have caused some disability. The young man was determined and was right to fight for just compensation.
Many of these accidents occur on Indian roads. The Motor Vehicles Act was created by the government in 1988 to avoid such problems. It mandated the mandatory purchase of ‘Third-party insurance’ for car owners. Without insurance, no one can drive a car.
The Third-party Car Insurance Policy covers any damage to third parties or property while on the road. Third Party Liability Cover provides benefits.
- There is no limit to the amount of compensation that an insurer will pay in the event of personal injury, disability, or death.
- Property damage by third parties up to Rs. 7.5 Lacs
- Personal Accident (PA), coverage for the owner driver, passenger or paid driver.
It also covers injuries sustained by the driver in an accident.
In general, third-party policies often come with ‘Personal Injury’ coverage. PA coverage for the owner driver is compulsory and available for a small fee. In other words, the insurance company will pay you a fixed amount if you are injured in an accident that occurs while you drive your car.
These are the conditions for purchasing compulsory personal accident coverage for an owner driver.
- The registered owner of the car must be the owner-driver
- The car insurance policy must name the owner-driver as the insured.
- Owner-driver must have a valid driving licence.