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How To Choose Tenure of Personal Accident Cover in Two Wheeler Insurance

Published On Sep 05, 2020 5:30 AM By Gunjan

How To Choose Tenure of Personal Accident Cover in Two Wheeler Insurance

While the third party insurance cover continues to be a compulsory cover under two-wheeler insurance, the Insurance Regulatory and Development Authority of India (IRDAI) has directed all the insurance providers that they now onwards they cannot force policyholders to purchase multi-year personal accident insurance cover (PA) by releasing a circular.

In addition to this, IRDAI also has increased the coverage of personal accident cover and unbundled it from the base insurance cover. In this article, you will get to know how bike owners can now select the duration of their Personal Accident cover in addition to other changes made in the cover, but before that you should understand the meaning of this cover.

What is Personal Accident Cover in Two-Wheeler Insurance?

The Personal Accident (PA) cover is a crucial element of the third-party insurance policy. Like it is compulsory to have at least a third-party insurance policy, to hold a PA cover is also mandatory for every bike owner in India. The PA cover offers coverage if a person (owner/driver) sustains a permanent disability or dies in an accident while riding a bike.

What are the changes in the Personal Accident Cover (PA)?

Following are the changes made in the two-wheeler insurance personal accident cover:

1. Cover

The coverage under the personal accident cover is enhanced to Rs. 15 lakhs from Rs. 1 lakh. It is a significant change which can bring a huge benefit and relief for policyholders.

2. Premium

The coverage enhancement has led to the increase in the premium amount of the personal accident cover from Rs. 50 to Rs. 750. Hence, the premium of a bike insurance policy has also increased.

3. Unbundling

The IRDAI has unbundled the personal accident cover from a third-party policy. It means you can have a standalone personal accident cover as well. With this change, you will not require to purchase multiple PA covers for multiple bikes. However, you will have to buy the basic third-party policy (excluding the PA cover) for different bikes.

4. Tenure

With this development, vehicle owners can now choose the tenure of their personal accident cover under the two-wheeler insurance plan. Therefore, you can choose a PA cover for a year as well and going for a long-term PA cover is not compulsory.


Due to the latest guidelines and changes made by the IRDAI in the two-wheeler personal accident cover, you can now easily pick the tenure of the PA cover as per your choice and requirement. This move will remove the unnecessary burden from the policyholders. However, it is still recommended to go for multi-year plans as many insurers provide a discount on the premium rates on choosing a multi-year policy.

It also lessens the trouble of remembering and renewing the plan each year and reduces the risk of tariff too, if the regulator revises it every year.

Also Read:

No Claim Bonus for Two Wheeler Insurance Policy in India

Roadside Assistance Add On Cover In Two-wheeler Insurance Explained

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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