Compare & Buy Car, Bike and Health Insurance Online - InsuranceDekho
Claim, renew, manage & moreLogin

What Is CPA Cover In Car Insurance?

Updated On Oct 15, 2023

CPA Cover in Car Insurance

Car insurance is a vital financial safety net in the modern world that shields you from unanticipated losses or collisions affecting your car. But it's also about making sure you and your fellow passengers are secure, in addition to safeguarding your prized car. Among the myriad components of car insurance, the CPA cover or Compulsory Personal Accident Cover holds significant importance, especially for the vehicle owner.

What is a CPA Cover in Car Insurance?

The Insurance Regulatory and Development Authority of India (IRDAI) has guidelines that state that car insurance policies in India must include Compulsory Personal Accident (CPA) coverage. This insurance is intended especially to shield the automobile owner financially in the event that something untoward happens that results in death or serious injury while using the vehicle.

Key Features:

  • Mandatory Inclusion: CPA cover is a compulsory provision in all motor insurance policies, ensuring the owner-driver is financially safeguarded against accidental mishaps.
  • Coverage Scope: The CPA cover in insurance provides a pre-decided sum insured in case of the owner-driver's accidental death or permanent total disability arising out of a vehicular accident.
  • Policy Tenure: CPA cover typically aligns with the tenure of the motor insurance policy. Renewing your car insurance would also renew the CPA cover.
  • Sum Insured: As of my last knowledge update in January 2022 (please verify as policies might have changed), the minimum sum insured provided under this cover is INR 15 lakhs.

Essential Protection for Owner-Drivers

With an increase in the number of vehicles and consequently the rise in accidents on the road, a CPA cover acts as an essential protective financial net. It ensures that in the face of adversity, the financial burden on the family of the owner-driver is significantly reduced. Understanding the facets of CPA cover meaning and integrating it into your insurance plan is not just a regulatory mandate but a prudent step towards comprehensive financial planning associated with vehicle ownership.

What Is CPA Cover In Car Insurance?

Personal Accident Insurance Coverage

A Crucial Component:

Personal Accident Insurance Coverage within the CPA plays a crucial role as it directly pertains to the well-being of the policyholder. This coverage is meticulously crafted to offer financial stability to the policyholder or their family, helping them navigate through the difficult times following an accident.

Wide-Ranging Protection:

This type of insurance provides coverage for the owner-driver against various risks associated with accidents. Whether it’s a minor injury, major physical impairment, or even death resulting from a vehicular accident, the Personal Accident Insurance Coverage offers financial support.

Accident Covers Of All Types

1. Accidental Death Benefit:

In the unfortunate event of the death of the owner-driver due to a vehicular accident, the nominee or legal heir receives the sum insured as specified in the policy document.

2. Permanent Total Disablement (PTD) Cover:

If the policyholder suffers from permanent and total disability due to an accident, the insurance provides a lump-sum amount. The exact compensation depends on the extent and nature of the disability, as outlined in the policy terms.

3. Permanent Partial Disablement (PPD) Cover:

In cases where the policyholder incurs permanent but partial disability due to an accident, the PPD cover provides financial compensation. The amount disbursed varies according to the severity of the disability and the policy's terms and conditions.

4. Temporary Total Disablement (TTD) Benefit:

If the accident leads to a temporary total disability where the policyholder is unable to engage in their regular occupation, the TTD benefit offers weekly compensation to mitigate income loss.

Tailored For Comprehensive Protection:

Each of these covers under the Personal Accident Insurance Coverage is designed with a deep understanding of the various predicaments an individual might face due to accidents. The range of covers provided ensures that there is some level of financial security offered irrespective of the type and extent of the accident, thus safeguarding the policyholder and their family effectively.

Why You Need Personal Accident Cover:

  • Essential Financial Shield: Immediate Financial Assistance: Accidents can impose a sudden financial burden. The Personal Accident Cover ensures that the financial impact, such as medical expenses and income loss, is mitigated, providing immediate support to the insured or their family.
  • Peace of Mind: Knowing that there's a financial safety net in place offers peace of mind to the car owner. It allows them to focus on recovery without being stressed about the economic aspect following an accident.
  • Financial Support for Dependents: In the tragic event of the policyholder’s demise, the cover offers substantial financial support to the dependents, helping them sustain their livelihood and meet daily expenses.
  • Coverage for Various Incidents: The cover isn't just limited to car accidents but extends to various incidents where the owner-driver might get injured, ensuring wide-ranging protection.

Personal Accident Policy Claim Eligibility

For a successful claim under the Personal Accident Cover, the claimant must meet specific eligibility criteria outlined by the insurance provider:

  1. Valid Driving Licence: The person driving at the time of the accident must possess a valid driving licence.
  2. Policyholder: The claim can be initiated by the policyholder or, in the case of their demise, by the immediate family members or legal heirs.
  3. Adherence to Policy Terms: The circumstances of the accident and the ensuing claim must align with the terms and conditions stipulated in the insurance policy. Any deviation might result in claim rejection.
  4. Immediate Reporting: The incident must be reported to the insurance provider as soon as possible, typically within a stipulated time frame mentioned in the policy document.
  5. Documentation: The claimant must provide all necessary documents, like the duly filled claim form, medical reports, police FIR (if applicable), and any other document requested by the insurance company, to support the claim.

Personal Accident Insurance Cover Premium Rate:

Determining the Premium:

The premium for Personal Accident Insurance Cover is reasonably nominal, considering the extensive protection it offers. Several factors influence the premium rate:

  • Sum Insured: The amount of coverage you opt for directly impacts the premium. Higher the sum insured, higher will be the premium.
  • Occupation: Individuals in riskier professions might have to pay a slightly higher premium.
  • Age of the Policyholder: Age plays a pivotal role, with different age bands attracting different premium rates.

Fixed and Transparent Rates:

The Insurance Regulatory and Development Authority of India (IRDAI) often stipulates the premium rates for mandatory personal accident covers, making the pricing transparent and straightforward.

Personal Accident Cover Add-Ons

Enhancing Your Protection:

Personal Accident Cover add-ons are additional protections you can purchase to enhance the scope of your basic cover. These are instrumental in providing an extra layer of financial security.

  • Passenger Cover: This add-on extends the personal accident cover benefits to the passengers in the vehicle during an accident.
  • Income Benefit: If an accident leads to temporary disability and loss of income, this add-on provides a weekly benefit to compensate for the loss.
  • Hospital Cash: It offers daily cash benefits for each day of hospitalization resulting from an accident, helping cover miscellaneous expenses not typically covered by health insurance.
  • Ambulance Cover: This covers the costs of ambulance services used following an accident.

Tailoring As Per Needs:

Add-ons allow policyholders to customize their insurance policies to suit their specific needs and circumstances. Since each individual’s requirement varies, add-ons provide flexibility and personalized protection, ensuring comprehensive coverage.

Wise Investment:

Opting for add-ons might slightly increase the premium but it ensures all-rounded financial protection, making it a prudent investment. Understanding and selecting the right add-ons that align with your needs is crucial for optimum benefits.

Benefits of Buying Personal Accident Insurance along with Car Insurance

  • Holistic Coverage: Combining Personal Accident Insurance with your Car Insurance ensures that both the vehicle and the driver are protected financially in case of an accident.
  • Cost-Effective: Buying both insurances together can sometimes fetch you bundled deals or discounts, making it a cost-effective approach.
  • Single Point of Contact: Having both policies from the same insurer simplifies the process of policy management and claims, as you have a single point of contact for all your concerns and queries.
  • Peace of Mind: With the knowledge that you are adequately covered, there is a sense of security and peace that allows you to drive more confidently and responsibly on the road.

What is Covered Under the Personal Accident Insurance?

Core Inclusions:

  • Accidental Death: The policy provides compensation to the nominee in case of the policyholder's accidental death.
  • Permanent Total Disability: If an accident results in permanent total disability, the insurance offers financial support to cope with the loss of income and medical expenses.
  • Permanent Partial Disability: In cases where the accident leads to permanent partial disability, a specified percentage of the sum insured is paid out.
  • Temporary Total Disability: If the accident leads to a situation where the policyholder is temporarily unable to work, a weekly benefit is often paid for the duration of the disability.

Additional Covers (Optional):

  • Medical Expenses: It covers the medical costs incurred due to treatment following an accident.
  • Broken Bones: Some policies offer lump-sum payouts for fractures or broken bones resulting from an accident.
  • Ambulance Charges: Reimbursement or direct payment of ambulance charges for transporting the policyholder post-accident.

What is Not Covered Under the Personal Accident Insurance:

  • Intentional Self-Harm: Any injuries or death resulting from intentional self-harm, suicide, or attempted suicide are not covered.
  • Influence of Intoxicants: Accidents occurring while under the influence of alcohol, drugs, or other intoxicants are excluded from coverage.
  • Illegal Activity: Injuries or deaths occurring while engaging in illegal or criminal activities are not covered.
  • War and Civil Disturbance: Damages resulting from war, invasions, civil war, riots, or any such similar events are excluded.
  • Professional Sports: Accidents occurring while participating in hazardous sports and professional racing are not covered.

Compulsory Personal Accident (PA) Cover for Owner-Driver:

  • Legal Requirement: The Indian Motor Tariff makes it mandatory for all vehicle owners to have a PA cover. It's a crucial legal requirement aimed at providing financial protection to the vehicle owner.
  • Coverage Amount: The compulsory PA cover offers a sum insured of Rs 15 lakhs for the owner-driver. It’s designed to provide substantial financial support in the event of death or permanent disability arising from a car accident.
  • Affordability: With a nominal premium, this cover is affordable, ensuring that legal compliance does not become a financial burden for vehicle owners.
  • Ease of Purchase: It can be easily purchased alongside your motor insurance policy, making the process streamlined and hassle-free for vehicle owners.

Who is Covered:

The Compulsory PA Cover is meant exclusively for the owner-driver of the vehicle. It provides protection only to the registered owner who is also the driver.

Unnamed Passenger PA Cover in Car Insurance

Essential Understanding:

  • What it is: The Unnamed Passenger PA Cover provides insurance coverage to passengers in your car at the time of an accident. This coverage is not specific to named individuals but applies to any passenger present during the insured event.
  • Flexible Protection: This cover is particularly beneficial for individuals who often have different passengers in their vehicle, providing protection to friends, family, and colleagues alike.
  • Claim Process: In the unfortunate event of an accident that results in injury or fatality to passengers, claims can be made for each affected individual under this cover.
  • Sum Insured: Typically, insurers offer a predefined sum insured per passenger, which you should check and understand before purchasing the policy.

Why Consider it:

Enhanced Safety Net: It adds an extra layer of financial safety for passengers, which is crucial if you frequently travel with others in your vehicle.

Features of Standalone Owner-Driver Personal Accident Cover:

Detailed Overview:

  • Comprehensive Protection: This cover offers widespread protection, covering accidental death, permanent total disability, and permanent partial disability resulting from a vehicle accident.
  • Flexible Sum Insured: Policyholders can choose the sum insured that best suits their needs, providing flexibility and allowing for tailored financial protection.
  • Extended Coverage: Many standalone policies offer additional benefits, like coverage for ambulance charges, medical expenses, and weekly benefits for temporary total disability.
  • No Dependency on Vehicle: As it's a standalone policy, the coverage is not linked to a specific vehicle. The owner-driver is protected regardless of the car they are driving at the time of the accident.
  • Hassle-Free Renewals: Being independent of your car insurance, renewing a standalone PA cover is a straightforward process, even if you switch your car insurance provider.

Making the Right Choice:

It's essential to weigh the features and benefits of both unnamed passenger PA covers and standalone owner-driver PA covers. By understanding their distinct offerings, you can make an informed decision that provides comprehensive protection to both you and your passengers while on the road. Ensure to read the policy documents carefully to grasp the extent and limitations of the coverage provided.

What If I Have A Paid Driver?

If you employ a paid driver to operate your vehicle, it is your responsibility to ensure they are covered under a Personal Accident policy, safeguarding them from risks associated with accidents while driving.

  • PA Cover for Paid Drivers: Insurance companies offer specific PA covers for paid drivers that protect them against accidental death and permanent disability. These covers offer financial security to the drivers and their families in the case of mishaps.
  • Legal Mandate: As per Indian Motor Tariff, having insurance for your paid driver is mandatory. It ensures that in the event of an accident, the driver gets necessary financial support for medical treatment or in case of disability or death.
  • Premium & Coverage: The premium for paid driver PA cover is nominal, often around Rs. 50 for a sum insured of Rs. 2 Lakhs. However, these figures might vary slightly from one insurer to another.

What About My Family Riding In The Car?

  • Consider Unnamed Passenger PA Cover: You may opt for an ‘Unnamed Passenger Personal Accident Cover’ to extend protection to your family members or any other passenger in the vehicle during an accident.
  • Wide-Ranging Safety: This cover provides financial support in case of accidental death or permanent total disability suffered by any passenger in the vehicle.
  • Flexible Sum Insured: You can choose a sum insured per passenger and ensure that it provides adequate coverage to meet the financial needs arising out of unforeseen accidents.
  • Peace of Mind: With your family members protected under the unnamed passenger PA cover, you can have peace of mind while travelling. It creates a safety net that is crucial when you have your loved ones riding with you in the vehicle.

Understand your and your family's needs, and take into consideration the risks associated with driving. Select a PA cover that offers comprehensive protection to you, your paid driver, and your family members. Being well-informed and choosing the right cover can provide essential support in times of need, making a significant difference in the aftermath of an accident.

Accident Covers Are Mandatory

  • Legal Requirement: In India, having accident cover as part of your motor insurance is not merely an option; it’s a legal requirement under the Motor Vehicles Act. This mandate is designed to offer protection to vehicle owners and drivers against financial implications arising from accidents.
  • Owner-Driver Protection: Every vehicle owner who is also the driver must have a Compulsory Personal Accident (CPA) cover with a minimum sum insured of Rs. 15 lakhs. This coverage ensures financial security in the event of accidental death or permanent total disability.
  • Protection for Paid Drivers: If you have a paid driver, the law mandates that they too need to be covered under a Personal Accident policy, safeguarding them against risks while driving.
  • Non-Compliance Penalties: Failing to adhere to these requirements can lead to legal complications, including fines and penalties. Therefore, it is vital to understand the mandatory nature of these covers and ensure compliance to avoid legal hassles and ensure protection for yourself and others.

Final Thoughts

Navigating through the realm of accident covers and understanding the intricacies can be daunting, but it’s crucial for your financial safety on the road. Personal Accident Covers, including the mandatory CPA cover, provide essential support in the unfortunate event of an accident, offering financial aid to mitigate the economic strain on the affected individual and their families.

Being well-versed with the various facets of Personal Accident Covers and comprehending their importance will not only keep you on the right side of the law but also provide peace of mind knowing that you're adequately protected. In the uncertain terrains of life and the road, such insurance covers act as a safety net, offering support and protection when you need it the most.


  • What does CPA mean when it comes to auto insurance?

Compulsory Personal Accident coverage, or CPA for short, protects the driver and owner of the car financially in the event of an accident-related death or permanent complete disability.

  • Is CPA coverage required for every owner of a vehicle?

Yes, all Indian vehicle owners and drivers are required to carry CPA coverage.

  • To what extent is a CPA's coverage offered?

The lowest amount insured under a typical CPA policy is Rs. 15 lakhs.

  • Is it possible to increase the amount insured under CPA cover beyond Rs. 15 lakhs?

Yes, many insurance providers offer options to enhance the sum insured for an additional premium.

  • If I already have a life insurance policy, is CPA coverage still necessary?

Yes, CPA coverage is still required because it covers the risks especially related to auto accidents.

  • Do paid drivers get protection from the CPA cover?

No, owner-drivers are covered under CPA protection. For paid drivers, separate PA insurance should be obtained.

  • How much does the CPA cover premium costs?

The cost of CPA coverage with a quantity insured of Rs. 15 lakhs is normally fixed, though individual insurance firms may charge a little differently.

  • What distinguishes anonymous passenger PA cover from CPA cover?

Unnamed passenger PA cover provides additional protection to car occupants in the event of an accident, whereas CPA cover is only for the owner-driver.

  • Can I purchase a CPA cover on its own?

CPA coverage is normally included as standard equipment in auto insurance plans, while some carriers may offer separate coverage as well.

  • If the driver is impaired by drugs or alcohol at the time of the collision, will the CPA coverage still be valid?

No, the CPA cover does not extend to claims made while the motorist is impaired by drugs or alcohol.


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.

Explore more before buying Car Insurance

    must dotmust graphics

    Why to buy from InsuranceDekho?

    • Instant policy # within 5 mins
    • More than 45 Lac happy customers
    • Claim Support available all 7 days of the week

    People Also Read