Passenger Cover in Car Insurance

Passenger cover is required to protect the passengers of a car individually if they are involved in an accident. Although it is not mandatory, it is recommended, especially for commercial vehicle owners or share ride vehicle owners. Passengers (or their relatives) are entitled to claim medical expenses, death benefits, disability benefits and funeral expenses under this add-on cover.

What Is Covered Under A Passenger Cover?

A passenger cover add-on provides coverage of up to Rs. 2 lakh for the following:

1. Medical treatment costs incurred for passengers in case of an unforeseen accident.

2. Disability liability (permanent and temporary disability) cover to the car’s passengers.

3. Financial support in case of the death of any passengers.

What is not covered in the Passenger Cover?

Following are the exclusions of a passenger cover add-on:

1. An accident that has happened while a person is under the influence of alcohol/drugs.

2. Any physical injury caused at the time of attempted suicide is not covered under this add-on.

Benefits of Purchasing Passenger Cover

Being a responsible car owner, you have a certain duty towards the passengers if an accident happens to result in injury or disability of the passenger. Having a passenger add-on cover along with the comprehensive car insurance plan, will provide the policyholder and the passengers with wide coverage. Highlighted below are some of the benefits of purchasing passenger cover:

• Offers financial help if the passenger dies due to an accident.
• In case of an accident, coverage for the treatment costs of passengers is offered with this add-on.
• Passengers of the covered car are offered a disability liability cover.
• Financial liabilities get reduced in difficult situations as you can claim for the passenger and driver of the car.
• Helps in reducing the stress if any accidental injuries happen to the passenger and the insured car’s driver.
• Helps in avoiding any legal hassle in case the insured car is a commercial passenger vehicle.

Cost of Passenger Add-On Cover

The cost of passenger add-on cover differs from insurance company to insurance company and it also depends on the sum insured. In case, you wish to know about the cost and any more information regarding passenger add-on cover, you can check the same with the car insurance company.

How To File A Passenger Claim In A Car Accident?

As the name suggests, passenger cover is an insurance policy aimed to protect the passengers riding with the policyholder in their car. If you plan to buy passenger cover, here are the steps you need to take to claim passenger cover.

1. When an accident occurs and the passengers are injured/killed/ disabled, policyholders must immediately call the insurer and inform them of the fatalities.
2. Insurance providers allot a surveyor to validate the claims. The surveyor will inspect the site and assess the extent of damage.
3. Contact your nearest police station and file an FIR, as FIR is the first legal record that documents the events leading up to the accident.
4. Tend to the passengers and make sure they are well.
5. Collect all the supporting documents, the duly filled form and submit them to your insurer. This will initiate the claim process.
6. Once the claim is validated, the insurance company will:

1. Pay medical expenses (hospital bills, treatment).
2. Compensate for permanent or partial disability.
3. Provide a death benefit to the passenger’s family if needed.

How Does Passenger Cover Work?

A passenger cover is used to provide financial assistance to passengers of the vehicle when they are affected by an accident. It is an add-on cover to t the standard car insurance policy which provides comprehensive coverage. Passenger cover compensates for injury, disability and death of passengers riding in the insured’s car.

When there is Injury:

Passenger cover provides medical compensation to the injured passengers.

When there is disability due to injury from accidents:

It may provide monetary compensation to disabled passengers when they are disabled after an accident.

Death

If a passenger passes away due to a car accident, insurers pay out the passenger’s next of kin or nominee with a death benefit amount which can be useful for their future lives.

Is Passenger Cover Mandatory?

Passenger cover is not mandatory, however, it is recommended, especially for rideshare vehicles that are used for long-distance journeys. Having this add-on cover ensures that the passengers are taken care of, improving the quality of the ride.