Personal Accident Cover For The Owner-Driver
A Personal Accident Cover provides financial protection against any accidental death or disability. The compensation shall be provided according to the limit stated in the policy.
It is mandatory, as per vehicle norms, for all bikes to have a Personal Accident Cover with a minimum of ₹15 lakhs coverage. Nevertheless, if you already have a personal accident cover of 15 lakhs for your existing vehicle, you need not buy this cover separately for your bike.
For example, Nidhi purchased a Personal Accident Cover of Rs 15 lakhs along with her existing bike insurance policy. Several months later, while driving to work, a bus hits her bike, which leaves her permanently disabled. The insurance company will pay Nidhi a fixed amount as specified in the policy.
Personal Accident Cover For Passengers
A Personal Accident Cover for passengers protects the pillion rider or passenger in case of any accidental death or disability. Although this cover is not mandatory, it is important to protect anyone riding with you.
For instance, Rahul and Soham were travelling on Rahul's bike when they suddenly met with an accident. Soham, the pillion rider, sustained a major spinal injury, causing permanent disability. Since Rahul had a Personal Accident Cover for the passenger with his insurance policy. Soham will also be compensated according to the policy limit.