Is Personal Accident Cover Mandatory For The Owner-Driver?

Under the Motor Vehicles Act of 1988, having third-party insurance coverage for your vehicle is non-negotiable. These policies offer crucial financial protection in the event of accidents or unexpected circumstances. Personal Accident (PA) insurance, specifically, is a requirement for all vehicle owners. This insurance steps in to provide vital financial support if the insured faces disability or death due to an accident.

In this discussion, we'll delve into why personal accident cover is indispensable for every vehicle owner—a topic often overlooked by many. So, without further ado, let’s get started!
 

What is A Personal Accident Cover?

Personal Accident (PA) insurance is designed to provide compensation in cases of disabilities, injuries, or death resulting from accidental and violent events. Unlike medical, health, or life insurance, PA insurance is an annual policy that specifically addresses these unforeseen circumstances. Both two-wheeler and car insurance can be covered through the PA. Crucially, it kicks in only when the insured individual experiences serious bodily injuries from an external event. It's important to note that PA insurance does not extend coverage to illnesses or diseases.
 

What Does Personal Accident Cover Include?

Let us now check out the elements that are covered through the policy -

• Accidental Death Benefit
  A lump sum is provided to the legal heir or nominee of the insured individual in the event of the insured's death due to an accident.
   
• Permanent Total Disability Benefit
  Payment of a lump sum is made if the insured experiences total or permanent disability, rendering them unable to work.
   
• Permanent Partial Disability Benefit
  If the insured sustains a permanent disability that restricts daily living activities, a partial payment is granted.

Personal Accident Plan Cover Exclusions?

Several exclusions present under the Personal Accident plan cover have been mentioned below.

• Activities of self-harm.
• Disability or death due to intoxication.
• Death or disability due to unlawful activities.
• Pregnancy or childbirth causes disability or death.
• Pre-existing injuries.
• Death or disability in case of adventure activities.
• Disability or death due to war.
• Death or disability directly or indirectly caused outside the geographical area.
   

Why Is A Personal Accident Insurance Cover Mandatory?

It's an undeniable truth that, as humans, we're wired to sense danger in various situations. Among these, driving stands out as one of the most inherently risky activities, exacerbated by factors like reckless driving and congested traffic conditions that we encounter daily. Even when you're not at fault, you can find yourself in serious and potentially life-threatening situations.

Picture this scenario: you're driving, minding your own business, when suddenly, a speeding truck collides with your vehicle. The impact could be catastrophic, leading to severe injuries or even loss of life. Such incidents are notorious for causing permanent disabilities or fatalities. This is precisely why obtaining a Personal Accident (PA) cover for your vehicle becomes imperative.

PA insurance provides crucial financial support to owner-drivers under motor insurance. This policy is indispensable because it can profoundly impact an individual's earning capacity, potentially leading to dire consequences.

Let's take a deeper look into the compelling reasons why investing in PA insurance coverage is a decision worth making.
 

Reasons To Get Personal Accident Insurance

• Legal Compliance
  PA insurance coverage has been made mandatory for everyone who owns and drives a vehicle, and it can lead to penalties if not owned.
   
• Accidental Risk Coverage
  PA insurance coverage provides you with financial security during events of injuries caused by an accident.
   
• Rs 15 Lakhs Coverage For Accidental Death And Permanent Disability
  If the unfortunate happens, your dependents will be provided with Rs 15 lakhs to assist them during tough times.
   
• Ensuring 50% Sum Insured Due To Permanent Disability
  You can be provided with a 50% sum insured in any case of temporary disability for supporting your treatment and finances.
   

What Should You Consider When Getting PA Coverage?

Before choosing a suitable Personal Accident policy, it is crucial to comprehend the below necessary features.

• Coverage
  It determines the risk extent the insurance policy can cover during any unfortunate event. It is crucial that your policy will cover you for all possible events. Further, worldwide coverage can also be integrated for people who frequently travel abroad.
   
• Sum Insured
  This denotes the maximum value the insurance company will cover during the policy period. It's crucial to select a policy with an adequate sum insured to meet your needs. Remember, if medical expenses surpass this limit, you'll be responsible for covering the excess.
   
• Premium
  It is the amount paid to the insurer for securing the insurance coverage. Review the terms and conditions to understand the coverage scope. Avoid opting for the cheapest plan, as it may not offer sufficient coverage.
   
• Inclusions
  These outline the accident scenarios covered by the policy. Ensure the policy covers the most likely scenarios relevant to you.
   
• Exclusions
  Exclusions specify the accident scenarios not covered by the policy. Verify that your specific requirements aren't listed as exclusions. Consider paying a higher premium to ensure coverage for specific exclusions.
   
• Type Of Policy
  Choose between a family floater or an individual plan. A family floater plan extends coverage to your family members for accident-related medical costs and allows for renewal in favor of family members.
   
• Insurer’s Reputation
  It is vital to check the insurer’s claim settlement ratio as well as reviews, testimonials, and online ratings to comprehend the service quality.
   
• Exit Age
  Always choose the plan that will have a high exit age. This is due to the reason that you will not be able to renew the insurance after that particular age.
   
• Network Hospitals
  Ensure that your insurer provider has convenient and dependable network hospitals. These will assist in settling the bills and accepting cashless treatment effectively.
   

Wrapping Up!

PA is a crucial component of vehicle insurance as it provides you with the necessary support and certainty. Always ensure that you have the PA under all circumstances to protect you and your family during any distressing event. Through the PA, you will be provided financial security to ride the public roads without worrying.  

FAQs

1. Is personal accident cover mandatory?
   Yes. Every person who owns a personal vehicle must have a personal accident cover.
    
2. What happens if you don't have personal accident cover?
   You can be imposed with fines in the absence of a valid PA cover. The absence of a valid PA cover can also result in the rejection of claims in the future. 
    
3. Does bike insurance include Personal Accident coverage?
   No, the PA cover is not included in the two-wheeler insurance. You should buy PA separately by paying an additional premium.
    
4. Should I need to buy a separate PA cover for my bike and car?
   No. You require only one PA coverage as it is linked with the individual and not the vehicle.