Personal Accident Cover in Motor Insurance Explained
Since September 2018, a personal accident (PA) cover of ₹15 lakh for the owner-driver has been made mandatory with every motor insurance policy in India. This IRDAI mandate ensures that vehicle owners receive financial protection in case of permanent disability or death due to a road accident while driving their insured vehicle.
What Does Personal Accident Cover Include?
The mandatory PA cover provides compensation of ₹15 lakh to the owner-driver for death or permanent total disability resulting from a motor vehicle accident. This cover is bundled with both third-party and comprehensive insurance policies. The annual premium for this compulsory cover is ₹750 for cars and ₹350 for two-wheelers.
- Death due to motor accident: ₹15 lakh
- Permanent total disability: ₹15 lakh
- Permanent partial disability: percentage of ₹15 lakh based on disability type
- Premium: ₹750/year for cars, ₹350/year for two-wheelers
- Covers the owner-driver only (not passengers or paid driver)
Who Is Covered and Who Is Not?
The mandatory PA cover applies only to the owner-driver — the person whose name appears on the vehicle's Registration Certificate and who holds a valid driving licence. Passengers, paid drivers, and unauthorized drivers are not covered under this specific cover. However, you can buy separate PA covers for passengers and paid drivers as add-ons.
If the owner-driver already has a standalone PA cover of ₹15 lakh or more from any insurer, they can opt out of the motor PA cover by providing proof of the existing policy. This avoids duplicate coverage.
How to Claim Personal Accident Cover
In case of the owner-driver's death, the nominee or legal heir should file the claim with the motor insurer. For disability claims, the policyholder must submit medical certificates from an authorized medical practitioner detailing the nature and extent of disability. Claims should be filed as soon as possible, ideally within 30 days of the incident.
Key Takeaways
- PA cover of ₹15 lakh is mandatory for every motor insurance policy since September 2018
- Premium is ₹750/year for cars and ₹350/year for two-wheelers
- Covers only the owner-driver — not passengers or paid drivers
- You can opt out if you already have a standalone PA policy of ₹15 lakh or more
- Covers death and permanent disability from motor vehicle accidents
Frequently Asked Questions
Is the PA cover mandatory even for third-party-only policies?
Yes, the ₹15 lakh PA cover is mandatory with both third-party and comprehensive policies. It was made compulsory by IRDAI in 2018 to protect owner-drivers who previously had no personal protection.
Can I increase the PA cover amount beyond ₹15 lakh?
The mandatory minimum is ₹15 lakh. You can buy additional PA cover as an add-on with higher coverage amounts. Many insurers offer enhanced PA covers of ₹25-50 lakh at reasonable premiums.
Does PA cover work if I am driving someone else's vehicle?
No, the motor PA cover specifically covers the owner-driver of the insured vehicle. If you are driving a vehicle you do not own, the PA cover of that vehicle's policy will not apply to you.
Conclusion
The mandatory personal accident cover is an important safety net for vehicle owners. At just ₹750 per year for car owners, it provides ₹15 lakh of protection against the financial consequences of serious road accidents. Ensure your policy includes this cover and understand its terms.
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Vehicle information expert covering RTO regulations, driving licences, traffic challans, and road safety rules for Indian drivers.
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