Is A Personal Accident Mandatory For Bike Owners?

Personal accident (PA) cover is an insurance policy that offers financial compensation in case of a misfortunate event that results in bodily injury, disability, or death of the policyholder. All bike owners in India are mandatorily required to have a personal accident cover of up to Rs. 15 Lakh. In this article we will help explore personal accident cover in detail.

Personal Accident Cover And Bike Insurance

The Insurance Regulatory and Development Authority of India (IRDAI) is the regulatory body that regulates the insurance industry in the country. IRDAI provides licenses and sets the laws for the insurance companies. The regulatory body also revises its policies and issues new ones timely to match the current requirements of the society. As per the Indian Motor Tariff, all bike owners are required to have a personal accident cover. Earlier, bike owners were required to purchase a PA cover along with their bike insurance policy, however, IRDAI last year unbundled it from the base motor insurance policy.  Please note, that a personal accident cover is still a mandatory requirement.

What Are The Benefits Of A Personal Accident Cover?

A Personal Accident (PA) cover is a life insurance plan that offers compensation in case the policyholder suffers any bodily injury, permanent/temporary or total/partial disability due to an unfortunate event. A PA cover also provides compensation in case of an unfortunate death of the policyholder. The cover is a major necessity as it provides various benefits. The following are a few benefits- 

1. The personal accident cover offers financial support to the policyholder in case of permanent disability which has resulted in loss of income. 
2. The PA cover helps the policyholder by covering the medical expenses like hospital bills, medications and treatment in case of any accident. 
3. The PA cover not only insures the policyholder but also the surviving family members of the deceased. 

You may also like to read:- All You Need to Know About Personal Accident Cover in Bike Insurance

How To Claim A Personal Accident Cover?

Claiming insurance under the personal accident cover has the same procedure as claiming a normal bike insurance policy. The insurance can be claimed by the owner of the bike or the nominee of the bike. The policy  provides maximum benefits to the nominee or the surviving owner. The following are the steps you can follow to claim your personal accident cover- 

1. Inform the insurer about the accident and the damages caused. 
2. Produce all the documents like the copy of the FIR, witness statements among other required documents. 
3. Complete the formalities like filling the claim form, providing photographs of the bike accident, etc and be cooperative with the insurance survey team. 
4. Follow up with the survey team and bike insurance provider about the status of your bike insurance claim. 

In the case of the death of the policyholder/owner, the nominee will be required to file the claim. She/he will be provided with the compensation amount based on the terms and conditions of the policy.

Also Read

Personal Accident Cover in Two Wheeler Insurance Explained

Take Away

The PA cover offers coverage to the policyholder in situations that involve permanent disability or death of the policyholder in an accident while riding a bike. Although the government has made PA bike insurance policy compulsory, no rule obligates the purchase of a long-term PA cover. Make sure you select the right tenure for your PA cover and ride safe!

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.