Why is personal accident cover compulsory for car insurance? Know the facts

The Insurance Regulatory and Development Authority of India (IRDA) has announced that it will disclose details of personal accident (PA) cover for motor insurance policyholders from January 1, 2019.

The reason for this is to reduce the overall cost of owning a vehicle as previously IRDA increased the amount of mandatory personal accident cover from Rs 1 lakh to Rs 15 lakh resulting in higher costs car insurance premiums.

Under the IRDA’s mandate, you can now choose to purchase a separate ‘compulsory personal accident cover’ policy against accidental risks arising from 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.).

In India, it is compulsory for all car owners to have individual accident cover, whether one opts for a liability only policy or a comprehensive policy for his car. If you don’t have personal accident insurance, you could be penalized under the Motor Vehicle Act.

According to the 2002 Automobile Tariff, personal accident cover is compulsorily issued with each automobile insurance policy. It is granted within the framework of the multi-risk policy and the civil liability policy only.

According to Raj Kumar, Senior Manager, Sales, PolicyX.com, an insurance web aggregator: “Personal accident insurance provides you and your family with protection and security in the event, as the name suggests. , from an accident. It helps reimburse all your medical expenses after an accident and compensates the candidate in the event of disability or death.

Personal accident insurance provides up to 100 percent compensation of the sum insured in the event of death resulting from an accident. For disability, the figure is calculated taking into account the degree of disability – permanent or temporary.

Coverage scope

The extent of the coverage of the individual accident policy depends on the guarantee chosen by the insured. As part of the basic cover, it only provides the death benefit. For broader coverage, it includes death, total permanent disability and partial permanent disability. As part of the multi-risk cover, it grants benefits in the event of death, permanent total disability, permanent partial disability and temporary total disability.

Factors to keep in mind when getting PA coverage

You should pay attention to the following snippets when obtaining personal accident 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 provide a wide coverage network. Pay attention to the claims history of the insurance company you wish to purchase your policy from. AP coverage must include accidental death, broken bones, permanent disability, and accidental burns. In addition, he must also provide for ambulance and hospitalization costs. Some policies also offer protection for your trips abroad. Pay attention to the amount the candidate will receive in the event of death or permanent disability.

What is not covered by a PA plan

Natural death and death due to illness, suicide, under the influence of intoxicants, criminal intent, war and pregnancy are not covered by a personal accident insurance policy.


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Justin D. O'Neill