Everything About Personal Accident Cover in Bike Insurance

Published On Sep 17, 2021 11:00 AM By InsuranceDekho

A personal accident cover needs to be mandatorily purchased along with a standard bike insurance plan. It offers financial aid to the policyholder against bodily injuries sustained by them due to an accident. Read to know more.

A standard bike insurance plan would offer coverage to the policyholder against any loss or damage caused to the insured bike, however, what if the policyholder sustains any injury during the accident? For such a situation, there is a personal accident cover that one can include in their standard bike insurance plan. Let us understand in detail about personal accident cover.

Personal Accident Cover

There is none who wants to succumb to any unfortunate accident that can drill holes in their pocket in order to meet costly medical expenses. An insurance plan offers coverage to the bike owner from personal as well as financial losses. However, you need to add on a personal accident cover separately to your bike insurance plan necessarily because it functions only for you.

Significance of a Personal Accident Cover

The road conditions in India are pretty bad and they turn worse during monsoon season. With the busy roads and heavy traffic, it gets extremely difficult for a person to avoid accidents that can happen anytime and result in severe injuries and lots of damages.

For instance, On a fine day, you are getting late to reach somewhere in urgency and decide to ride your bike at high speed to reach there as soon as possible. However, while on the road, you meet with an accident after being hit by a car that is being driven recklessly by the driver, you sustain serious injuries on your hand. Although it is impossible to make your leg as fine as before, a personal accident cover can help you a lot by providing for huge medical expenses in the hospital. A personal accident cover comes in handy during unforeseen situations like the above.

Is it Necessary to Have a Personal Accident Cover?

According to the Indian Motor Tariff Act, a bike owner needs to compulsorily own a third party bike insurance plan in order to ride their bikes legally in India. However, after seeing an increase in the number of road accidents and the high number of claims being raised by the policyholder, the government of India decided to make buying a personal accident cover mandatory for all bike owners. With this, the government intended to offer coverage against any kind of injury or loss that comes up in the accident.

There were some changes made in Jan 2019 after it had been made mandatory for the bike owners to buy a personal accident cover. The following changes were made:

  • In case the bike owner is offered coverage under a standalone bike insurance plan and the sum insured is Rs. 15 Lakh, then a waiver would be offered to them for this insurance cover.
  • In case the bike owner has a personal accident cover for his/her existing vehicle then they are not required to buy a separate personal accident cover for their new vehicle.

What all Is Covered Under a Personal Accident Cover?

Insurance Regulatory and Development Authority of India has defined a coverage limit of Rs. 15 Lakh. Under a personal accident cover, a policyholder would be offered compensation by the insurance provider if they sustain any injury, any kind of disability or death due to an accident. The insurance company would pay the policyholder in the following manner:

  • If the insured loses sight of one eye or limb, then 50% compensation will be offered.
  • If the insured loses two eyes, two limbs or one eye or one limb, then 100% compensation will be offered.
  • The insurance provider would pay a complete sum assured to the appointed nominee in the event of death.
  • If permanent disability happens, then 100% compensation is offered.

Also Read:

What Happens To Acko Car Insurance When The Policyholder Dies? 

Parameters To Consider While Purchasing Car Insurance In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard. 

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