What is Passenger Cover in Car Insurance?
Published On Nov 24, 2020, Updated On Sep 17, 2021
A passenger cover can make a world of difference in times of crisis. Read this article to find out how and why.
Car accidents are an unsavoury thing to think about, however, they are more common than we would like to admit. With such uncertainties, however, you cannot foresee when it can happen. One way to prepare for it is to purchase car insurance. Standard car insurance, in such cases, however, may not be enough add-ons such as the Passenger Cover become crucial in moments of crisis. In this article, we will tell you everything you need to know about it.
What is Passenger Cover?
In car insurance ‘passenger’ stands for people who are in the vehicle. A personal accident insurance is mandatory however, it does not account for the other people in the car other than the policyholder. Hence, a passenger cover provides more pervasive coverage in case of a mishap of some sort. Having coverage for your passengers, who are usually family or loved ones is sure to provide you with financial stability during a crisis as well as peace of mind. Moreover, as the owner of the car everyone inside the vehicle during the accident is your responsibility.
What is the Scale of Compensation Under Passenger Cover?
The passenger cover provides compensation for bodily injuries of the passenger sustained while travelling or when getting in or out of the car during an accident. The compensation is dependent on the type of injuries. In cases of death, loss of sight in two eyes, loss of both limbs, or loss of sight in one eye and loss of one limb or a permanent disability the compensation is 100%. However, with the loss of one eye or limb it is 50%.
What are the Benefits of Having a Passenger Cover?
As mentioned earlier, in case of an accident the car owner is responsible for all the people inside the car. Hence, he/she is obligated to pay for the costs of medical assistance and or permanent disabilities that may occur. With a passenger cover, these will be accounted for under your car insurance. The add-on provides wide coverage for a number of aspects including:
- The costs of medical care/ treatments required due to injuries sustained in the accident.
- FInancial aid in the event of death of the passenger/s.
- Disability Liability cover
- Greater financial stability and peace of mind in times of crisis.
- If the vehicle is a commercial car, this add-on can provide a hassle free experience in case of a mishap.
What is Not Covered By the Passenger Cover?
Like other insurance add-ons there are cases in which the cover does not provide compensation such as:
- If there was an accident causing physical damages to the car, while the passengers were not in the car.
- In private cars, the add-on covers a maximum of three passengers, beyond which the insurance provider will not compensate.
- If the injuries were sustained due to attempted suiside or self-injury.
- Accidents that occur due to illegal driving, such as driving while under the influence of alcohol.
In an overview, in the event of an accident, the personal accident cover will take care of the owner of the car, however, it does not account for the passengers who may be similarly affected. With a passenger cover, you can also get compensation for the financial liabilities of the other people in the car when a mishap occurs. This can make a significant difference for you in a crisis. Moreover, there are other such add-ons that can be equally helpful in such situations such as the roadside assistance cover or the outstation emergency cover. Click here to get car insurance quotes.
Disclaimer: 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.