Car Insurance Coverage for Drivers and Passengers

This policy covers medical bills, disability liability (permanent and temporary disability), and financial support in the case of a passenger's death up to Rs. 2 lakh. Passenger coverage refers to the financial protection provided to passengers traveling in the insured's vehicle. Personal accident insurance is compulsory for the vehicle's owner-driver, while it is optional for passengers. However, because each life is valued, consumers should get passenger coverage as part of their motor insurance policy despite the lack of obligation.

Explain Car Insurance's Driver And Passenger Coverage

Owner-drivers must have personal accident insurance. There are, however, methods for insuring the risks of any paid driver or passenger who uses your car.

• Personal Accident Insurance for Owner-Drivers

If you own a car and have a valid driver's license, your auto insurance policy must include Personal Accident Coverage. It covers you if the car registered to your name causes your premature death or total and permanent impairment. Only the insured or his or her rightful successors get the insurance money. No one else may submit a claim, even if they were the putative owner and were driving the car at the time of the accident.

• Personal Accident Insurance for Paid Drivers

Another scenario is that you own a car but pay someone to drive it. You can pay a tiny extra fee for an add-on that will also cover him/her. The money covered is only available to the person indicated as the paid driver in the add-on proposal application. No one else could claim the financial benefits, even if they were paid to drive that exact vehicle.

• Passenger Personal Accident Insurance, Unnamed

If an accident occurs while your passengers are in your car, you, as the owner of the vehicle, are responsible for their injuries. By acquiring the Personal Accident Cover for Passengers add-on, you may also cover the lives of your passengers. You can choose to insure 1-3 persons with this add-on if your vehicle has three passenger seats. There must not be more passengers in the car than are legally authorized at the time of the collision.

What is the function of this extra cover?

In the event of an accident, a normal comprehensive auto insurance policy financially protects both the covered vehicle and the owner-driver. In the case of death or permanent disability, the insurance company will pay the indicated insured sum to the insurance policy's nominee if you are the owner-driver of the covered vehicle. Ordinary car insurance, on the other hand, does not cover passengers in such circumstances. Passengers will be responsible for covering the costs of their own medical care. As the owner of the insured vehicle, you have a responsibility to passengers riding with you.

Take Away

Passengers in the insured automobile are not covered by standard comprehensive insurance. Automobiles, both commercial and personal, are affected. In the case of an accident, there is a potential that passengers will be injured or killed. Insurance firms provide an add-on policy to give travelers additional coverage. Having the option to pay liabilities arising from passenger injury or death gives the corporation complete flexibility over how passengers are treated. This way, you'll be able to cover the car and ensure that everyone who rides in it is financially protected. Passenger Cover adds a huge amount of value to your normal vehicle insurance policy.

Also read - Factors Affecting the Cost of Your Reliance Car Insurance Policy