Personal Accident Insurance Cover in Car Insurance

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What is Personal Accident Insurance?

Personal Accident Insurance refers to a car insurance policy which provides financial compensation to the policyholder in the event of bodily injuries, total/partial disability, or death caused due to accidents. Personal Accident Insurance ensures financial assistance to an individual and to his/her family if he/she gets injured or unfortunately dies in an accident.

What is Covered Under Personal Accident Insurance?

Coverage for the following is offered under a Personal Accidental Insurance plan:

1. Accidental Death Benefit

Personal Accidental Insurance provides 100% sum insured to the nominee in case of accidental death of the insured. It is like the primary protection that comes with the policy and makes sure that the family is financially steady after the grievous passing of the policyholder. The nominee of the policy is a legitimate beneficiary of the individual.

2. Permanent Total Disability Benefits

Personal Accidental Insurance benefit provides coverage for injuries and permanent disabilities that hinder the individuals from engaging in the occupation after an accident. The total disability could be the loss of both the eyes or physical separation of limbs.

3. Hospital Daily Cash

Daily cash allowance is paid to the insurance company in case of an accidental hospitalization. Coverage is limited to a specific number of days (as specified in the policy terms and conditions).

4. Ambulance Expenses

Compensation is provided for ambulance expenses to carry the insured after an accident to the hospital.

5. Bodily Injuries

The cost incurred for medical treatment of bodily injuries sustained by the policyholder in an accident is covered under this plan.

6. Burns

Compensation is also provided for accidental burns.

7. Family Transportation Allowance

When the residence of the insured is far from the hospital, the expenditure incurred on transportation by the immediate family members, to reach the insured is compensated by the car insurance company.

8. Child Education Benefit

The education expenses of the dependent children of the insured are covered in case of accidental death or permanent total disability under a personal accident insurance plan.

Types of Personal Accident Insurance Plans

Followings are the types of Personal Accident Insurance Plans:

1. Individual Accident Insurance

This type of personal accident policy protects an individual in an event of any accidental damage. It covers accidental death, loss of limbs or sight, or other permanent disabilities of the policyholder which may occur due to an accident.

2. Group Accident Insurance

Group Accident Insurance is generally taken to get coverage of their employees by the employers. Depending on the size of the group, some of the insurance companies also provide a discount on the premium. It is a great move/ value-added advantage for small organizations as it is available at a low cost. However, this is a very primary plan and which can offer limited benefits in comparison with individual plans.

Personal Accident Insurance Cover for Owner Driver

PA or Personal Accident Insurance Cover is a facility extended by the insurance company to the insured car owner-driver that offers protection to them against any accidental injuries. It offers compensation to the car owner-driver in case they have undergone any kind of bodily injuries, permanent disability, or even death due to the car accident. An owner-driver is basically the owner of the insured vehicle, who has a valid driving license.

Although many car owners are generally aware of all the legal requirements of having a car insurance plan, most people are still confused regarding whether having a personal accident cover is compulsory or not. Let’s further know the answer to this question.

Is Owning a Personal Accident Cover Mandatory?

As per the Indian Motor Tariff Act, it is only compulsory to buy a third-party liability insurance plan for your vehicle. However, due to the high numbers of claims being reported for property damage or bodily injury, it was made mandatory for all the owners of car and two-wheelers to purchase a personal accident cover as well. The intent behind this was to benefit the vehicle owner for any damage or loss occurring because of an accident.

However, the feature of purchasing a Personal Accident cover under a motor insurance plan has changed slightly with effect from Jan 2019. Below mentioned conditions are implied in the changes:

It states that if the vehicle owner has a stand-alone accident plan with Rs. 15 Lakh sum insured, then he/she can be given a waiver for Personal accident cover.

Under this cover, the amendments also imply that in case the owner-driver of a vehicle has a personal accident plan for his current two-wheeler or car, then it is not mandatory for him to purchase it for a new vehicle.

The personal accident cover is clubbed along with a Third-party liability policy or a Comprehensive Car Insurance policy and is mandatory.

Why is it Important to Purchase a Personal Accident Cover?

When we humans sense any kind of danger, we are always inclined to prepare an action plan that will protect us in the time of adversity. Driving on the road with hurrying vehicles and bad traffic, for the majority of the day makes the whole driving experience quite stressful. Moreover, such incidents are quite common, wherein despite no fault of yours, your vehicle gets banged and in the process sustains various damages.

While you are on the road, accidents can happen anytime and anywhere. Just imagine the possibility of your car being hit by a speeding truck, resulting in the driver getting hurt, which could even result in loss of one’s life or any kind of permanent disability. And when we are aware that the probability of such incidents cannot be ever denied, purchasing a personal accident cover becomes an important thing.

Additionally, under a motor insurance plan, it is significant to purchase a personal accident cover as it offers the owner-driver with maximum financial assistance in all the events. Moreover, the PA cover seems vital especially when the earning capacity of an individual gets affected.

Who Should Buy Personal Accident Insurance?

Personal Accident Insurance should be bought by everyone, irrespective of their age, occupation, and health. Individuals should generally buy this plan as soon as they become independent and start earning. Also, as per law, every car owner is compulsorily required to have a personal accident cover of up to Rs. 15 lakh.

What Is Not Covered Under Personal Accident Insurance?

Following are the exclusions of a personal accident insurance plan:

  1. Self-Inflicted Injuries: Self-injures are not covered under personal accidental insurance.
  2. Injuries/death Occurred In War: Any injury caused during due wars is not covered under personal accidental insurance.
  3. Venereal Or Sexually Transmitted Diseases: Personal accidental insurance does not cover venereal or sexually transmitted diseases.
  4. Treatment of Obesity or Cosmetic Surgery: People prefer surgeries to stand out but any injury caused during such activities is not covered under personal accidental insurance.
  5. Participation In Defence Operations: Personal accidental insurance does not cover accidents while participating in defense (Army/Navy/Air Force) operations.

Advantages of Personal Accident Add-On Cover in Car Insurance

Accidents can happen with any individual at any point of time in life. Therefore, it is important to consider buying a personal accident cover along with a comprehensive health insurance plan to ensure complete protection. Some of the advantages offered by personal Accident cover in Car insurance include:

  1. Offers financial aid to the policyholder for any healthcare expenses including drugs, hospital bills and treatment.
  2. Offers financial assistance to the policyholder for any income loss in case an accident leads to a permanent disability of the patient.
  3. Apart from the policyholder, the personal accident cover is also beneficial for surviving members of the deceased’s family.
  4. It does not matter if the injury suffered is major or minor, in both cases, the policyholder is eligible to avail compensation by the insurance company.
  5. There are certain insurance companies that offer coverage for partial and temporary disability excluding total dismemberment or demise cover.

Documents Required For A Personal Accident Insurance Claim

Following documents are required at the time of making a personal accident insurance claim:

  • Death certificate
  • Medical certificate
  • Medicine bills
  • Post-mortem report
  • FIR report

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Personal Accident Cover in Car Insurance FAQ

  • Does Personal Accident Insurance covers adventure sport injuries?

    No, Personal Accident Insurance does not cover accidents encountered while participating in adventure sports.

  • Is it compulsory to get a personal accident cover?

    Yes, every car owner is compulsorily required to have a personal accident cover of up to Rs. 15 lakh. However, the policyholder has the option to buy it either with the car insurance policy or separately.

  • Does Personal Accident Insurance cover sexually transmitted diseases?

    No, Personal Accident Insurance does not cover sexually transmitted diseases.

  • Is a medical check-up necessary before buying a policy?

    A medical check-up may be necessary when you sign up for a new health insurance policy. However, medical check-ups are not usually needed for the renewal of policies.

  • Can I include my parents in personal accident insurance policy?

    Yes, you can include your dependent parents up to the age of 70 years. Personal Accident Insurance Policy provides add-on benefits for dependent parents with pocket friendly premium.

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#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.