When you are driving a car, your safety is something that should never be overlooked. But accidents on roads can happen to anyone and sometimes they can become serious and put your life in danger. At the time, your and your family’s utmost priority becomes your  protection rather than worrying about expenses. To avoid any financial stress in that already stressful situation, personal accident cover is what you need. It is an add-on feature that comes with your  car insurance and gives you financial protection in the times of emergency. Many people find it a liability rather than an advantage. In this article, we will discuss the importance of personal accident cover and whether it is compulsory to buy or not. 

What coverage does personal accident Cover provide? 

Personal accident cover is a component of car insurance that provides financial compensation in case of injury, disability, or death resulting from an accident involving the insured vehicle. The coverage mainly includes:

These benefits ensure financial security for the policyholder and their family, providing peace of mind during unforeseen circumstances.

When is a personal accident insurance cover mandatory? 

In many countries, including India, personal accident cover for the owner-driver is mandatory as part of motor insurance policies. The Motor Vehicles Act, 1988, mandates that all vehicles must have a valid insurance policy, which includes third-party liability and personal accident cover for the owner-driver. This requirement ensures that drivers are financially protected against accidents, even when driving their vehicles.

The mandatory cover usually has a minimum sum insured amount, which can be increased based on the policyholder's preference and the insurer's offerings. The maximum compensation offered is Rs 15 lakhs as per the guidelines of IRDAI. It means that your total claim amount cannot exceed  this limit during your policy term. For example, if you have claimed Rs 8 lakhs within 5 months of your policy and if you require it again then you can claim up to Rs 7 lakhs next time during that policy year. 

What Should You Consider When Getting PA Coverage?

When choosing your personal accident cover, you should consider the following factors:

Sum Insured: Assess your financial needs and affordability and then go for a plan that adequately covers your and your family needs. Note that a higher coverage means a higher premium so, decide accordingly. 

Premium Rates: The premium for PA cover can vary based on the coverage amount and the insurer's terms. Compare different policies to find one that offers the best value for money.

Exclusions: Understand the policy's exclusions mentioned in your policy. For instance,  self-inflicted injuries, driving under the influence(drink and drive), and engaging in unlawful activities can significantly affect your premium rates. 

Rider Benefits: Some policies may offer add-ons/riders like educational grants for your children, buying blood from a blood bank etc. Assess whether these benefits align with your needs. 

FAQs

Q: Do passengers need to have a compulsory personal accident cover?
A: No, personal accident cover for passengers is not compulsory. However, it can be added to the policy for additional protection.

Q: Can I have multiple personal accident covers?
A: Yes, you can have multiple personal accident covers from different insurers. However, in case of a claim, the benefit is restricted to the actual loss suffered, and not all policies may pay out simultaneously.

Q: Is it possible to increase the sum insured for personal accident cover after I buy a policy?
A: Yes, most insurers allow policyholders to increase the sum insured for personal accident cover, subject to specific terms and conditions.

Q: Is PA cover applicable if the accident occurs outside the country?
A: Generally, PA cover is valid within the country's geographical boundaries. However, some policies may offer international coverage. Check the details with your policy provider before buying a policy.