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Difference Between A Driver's And A Passenger's Coverage In A Car Insurance Policy


Written by Saad Ahmad

Updated Oct 18, 2023

Know the difference between a driver's and a passenger's coverage in a car insurance policy.

This policy provides up to Rs. 2 lakh in coverage for medical expenses, disability liability (permanent and temporary disability), and financial assistance in the event of the death of any passengers. Passenger coverage in automobile insurance refers to financial protection for passengers riding in the insured's vehicle. Personal accident insurance is required for the owner-driver of the vehicle, however, it is not required for passengers. However, the lack of compulsion should not prevent people from purchasing passenger coverage as part of their automobile insurance policy, since each life is valuable.

Difference Between A Driver's And A Passenger's Coverage In A Car Insurance Policy

Car Insurance Coverage for Drivers and Passengers

Personal Accident Insurance is required for owner-drivers. There are, nevertheless, options for insuring the Personal Accident risks of any paid driver or passenger who uses your vehicle.

  • Owner-Driver Personal Accident Insurance

If you own a car and have a valid driver's license, you must have Personal Accident Coverage as part of your auto insurance policy. It protects you in the event of an untimely death or complete and permanent disability caused by the vehicle registered to your name. The insurance proceeds are only paid to the insured or his or her legal heirs. Even if they were the presumed owner and were driving the automobile at the time of the accident, no one else may file a claim.

  • Coverage for Paid Drivers' Personal Accidents

In another example, you may own a car but hire someone else to drive it. You can pay a small additional charge for an add-on that will cover him/her as well. Personal Accident Cover for Paid Driver is the name of this add-on. Only the individual named as the paid driver in the add-on proposal application is eligible for the sum covered. Even if they were paid to drive that particular automobile, no one else could claim the financial benefits.

  • Unnamed Passenger Personal Accident Insurance

If an accident occurs while your passengers are in your vehicle, you have an obligation to pay for their injuries as the owner of the vehicle. You may protect the life of your passengers as well by purchasing the Personal Accident Cover for Passengers add-on. If your automobile has three passenger seats, you may select to insurance 1-3 people with this add-on. During the collision, there must not be more passengers in the automobile than are legally permitted.

What is the purpose of this add-on cover?

A standard comprehensive auto insurance policy financially covers both the insured vehicle and the owner-driver in the case of an accident. If you are the owner-driver of the covered vehicle, the insurance company will pay the stated insured sum to the insurance policy's nominee in the event of death or permanent incapacity. Regular automobile insurance, on the other hand, does not cover passengers in such situations. The passengers will be responsible for paying for their own medical treatment. You have a responsibility to passengers traveling with you as the owner of the insured car.

Take Away

The normal comprehensive insurance coverage does not cover passengers in the insured car. Both commercial and personal automobiles are affected. There is a chance that passengers will be hurt or possibly killed in the event of an accident. Insurance companies provide an add-on cover to provide additional coverage that covers passengers. Having the option to cover liabilities deriving from passenger injuries or death will allow the company entire control over the treatment of passengers' injuries. In this manner, you can cover the automobile and ensure that everyone traveling in it is financially secure. The addition of Passenger Cover to your standard motor insurance policy adds a significant amount of value.

Also read - Variety Of Car Insurance Plans Provided By Kotak General Insurance


Written by Saad Ahmad

Saad is a marketing guru and has some exciting knowledge to share about the motor and related industry. Read More


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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