Rahul was on his way to college when a speeding truck suddenly slammed into his bike. As a result, Rahul lost both of his legs. Since he has a comprehensive insurance policy, all the damages incurred by his bike will be covered by his policy. And, his Personal Accident Cover shall provide compensation as per the limit stated in the policy.
With the plight of the roads, it is evident that all two-wheeler owners are driving on the road with a certain degree of risk. A sudden accident can change the course of your life in a matter of seconds without your knowledge. And, all you can do is make sure you're protected by an add-on called Personal Accident Cover. Having this add-on protects you against bodily injury, death, or permanent disability in the event of an accident.
What is a Personal Accident Cover in Bike Insurance?
A Personal Accident Cover is a type of add-on that financially covers you in the event of an accidental death or permanent disability. As per the Motor Vehicles Act, 1988, it is mandatory to have a Personal Accident cover. You can purchase this cover with your existing policy by paying an additional premium.
What are the benefits of Personal Accident Cover in bike Insurance?
A Personal Accident Cover can prove to be a valuable cover in the event of an unfortunate circumstance. Let’s look at the benefits offered by this cover -
- Ensures financial security
If you are the sole breadwinner of the family, a serious accident will severely impact your lives. Your financial burden can be eased to a certain extent by the compensation you receive from this cover.
- Covers Medical Expenses
A permanent disability is a lifelong condition that may require expensive and prolonged treatment. The compensation provided by the PA cover can be used to cover these medical expenses, without causing a dent to your savings.
- Secures your family’s financial future
If you suddenly pass away due to an accident, this will be a major setback for your family. They shall be put through significant mental and financial stress in your absence. In case of any accidental death, your family will receive compensation in the form of a lump sum amount. You can be assured that they are financially secure.
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Why Should One Buy a Personal Accident Cover?
- Mandatory requirement
A personal accident cover is a compulsory requirement by law.
- Covers Financial Expenses
If you meet with an accident that causes permanent disability or death, your family will endure a staggering level of stress. The compensation you receive from this policy will help your family meet their financial needs.
- Protects pillion
As a driver, you should ensure the safety of the fellow pillion rider, by opting for a Personal Accident Cover for passengers. This will financially cover them in the event of accidental death or permanent disability.
Types of Personal Accident Cover
Personal Accident Cover for the owner-driver
A Personal Accident Cover is a compulsory requirement for all bike owners. It provides financial coverage against accidental death or permanent disability. You need to opt for a coverage of at least Rs 15 Lakhs.
For example, Raghav holds a comprehensive insurance policy with an IDV of Rs 5 Lakhs along with a Personal Accident Cover of Rs 15 Lakhs. While on his way to work, Raghav meets with an accident when a speeding car blindsides him. He suffers severe head injury and dies on the spot. In this case, the insurance company shall provide compensation to his family as per the limit stated in the policy.
Personal Accident Cover for pillion rider
There is a separate Personal Accident Cover to ensure the safety of the pillion rider accompanying you. This cover safeguards them against death or permanent disability in case of an accident. Though this cover is not mandatory, it is ideal to opt for this cover to protect your fellow passenger.
For example, Mohan holds a comprehensive insurance policy with IDV of Rs 4,00,000, a personal accident cover with 15,00,000 coverage, and a personal accident cover for passengers with Rs 1,00,000 coverage. Mohan and his friend, Monica, are riding on his bike when a bus hits them. Monica sustained a serious injury in her tail bone resulting in permanent disability. In this case, the insurance company shall compensate Monica as per the limit mentioned in the policy.
Compensation under Personal Accident Cover in bike insurance
This table lays down the compensation payable for accidental death and injuries -
|Sudden or Accidental death
|Loss of both eyesight or two limbs/Loss of one eyesight and one limb
|Loss of one eyesight or one limb
|Total permanent disability.
What are the Exclusions of a Personal Accident Cover?
A Personal Accident Cover shall not cover you under certain circumstances. Before purchasing the policy, make sure you are aware of these exclusions.
- A Personal Accident Cover shall not cover any death or permanent disability due to -
- Driving under the influence of drugs, alcohol, or any other intoxicants.
- Any accident occurring outside the specified geographical area.
- Any self-inflicted injury or suicide.
- A vehicle used for racing or motorsports or not being used as per the law and regulations.
- Violation of the law.
- Driving without a valid licence.
How to Purchase a Personal Accident Cover?
In order to purchase a Personal Accident Cover, you need to follow these steps
- Go to the insurer's website. You can have a look at the standard bike insurance policies as well as the various add-on options.
- Scroll down and select the Personal Accident Cover.
- When you click on the cover, the premium for the same can be seen. Following that, you need to provide all the requested details and then proceed with the payment.
- You also have to provide the nominee details as well. This will make the claims process easier for your family in case of an accidental death.
- The policy will be sent to you once all the procedures have been completed. Verify that all the details in the policy are correct.
- Read the policy wordings and discuss with your insurer in case you need any sort of clarification.
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How do you Claim a Personal Accident Cover?
These are the necessary steps to follow to ensure a seamless claim process -
- In case of any mishap or accident, the first thing you need to do is to inform the insurance company about the accident as soon as possible.
- File an FIR with the nearest police station. Providing all details about the accident is necessary. If you sustain severe injuries or if you pass away as a result of the accident, a relative or a family member will need to file an FIR.
- The insurance company shall assign a surveyor to examine the situation and create a report.
- As soon as the surveyor produces the report to the insurer, the claim process shall begin.
- The insurer shall verify the report and check whether all the details are valid. After this is done, the compensation amount shall be provided to you or your family member as per the limit mentioned in the policy.
- It is important to note that in the event of accidental death, the claim should be filed by the nominee whose details are listed in the policy, and the compensation amount will be paid to the nominee only.
A Personal Accident Cover is a legal requirement and a safety net that provides financial protection against accidental death and permanent disability. Now that you know the benefits and the importance of a personal accident cover, we are sure that you can go ahead and decide whether or not to purchase it.