Why Is Personal Accident Cover Mandatory For Car Insurance? Know The Facts – Outlook India


It’s imperative for every vehicle owner with valid license to own a personal insurance cover for their own safety and security.
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The Insurance Regulatory and Development Authority of India (IRDA) has announced that they would be disclosing the details of the personal accident (PA) cover of the car insurance policy holders  beginning January 1, 2019 onwards. 
The reason for this is to reduce the overall cost of ownership of a vehicle, as previously, IRDA had increased the compulsory personal accident coverage amount from Rs 1 lakh to Rs 15 lakh, which had led to a rise in car insurance premiums costs. 
According to the IRDA mandate, you can now choose to buy a separate ‘compulsory personal accident cover’ policy against accidental risks arising out of driving your own vehicle. This car insurance policy can be bought for any type of vehicle, such as a private car, taxi, two wheeler and commercial vehicles (trucks, buses, etc.). 
In India, it is mandatory for all car owners to have a personal accident cover, irrespective of whether one goes for a third-party liability-only policy or a comprehensive policy for his/her car. If you do not own a personal accident cover, you could end up being penalised under the Motor Vehicles Act.
According to the Motor Tariff 2002, a personal accident cover is issued compulsorily with every car insurance policy. It is granted as part of the comprehensive policy and the third-party liability-only policy. 
Says Raj Kumar, senior manager, sales, PolicyX.com, an insurance web aggregator: “Personal accident insurance provides safety and security to you and your family in case, as the name suggests, of an accident. It helps in reimbursing all your medical expenses after an accident occurs, and provides compensation to the nominee in case of disability or demise.”
The personal accidental insurance provides up to 100 per cent compensation of the sum assured in case of death arising out of an accident. For disability, the figure is calculated taking into account the degree of disability – permanent or temporary.
Scope Of Coverage
The scope of coverage under the personal accident policy depends on the benefit selected by the insured. Under the basic cover, it provides only the death benefit. For a wider cover, it includes death, permanent total disability, and permanent partial disability. Under the comprehensive cover, it provides death, permanent total disability, permanent partial disability, and temporary total disability benefits. 
Factors To Keep In Mind While Getting A PA cover
You should pay attention to the following excerpts while getting a personal accident cover. The policy coverage should encompass all the daily activities that could lead to accidents at home or at the the workplace. It should provide a wide net of coverage. Pay attention to the claim settlement record of the insurance company you want to purchase your policy from. The PA cover should include accidental death, broken bones, permanent disability, and burns due to an accident. Moreover, it must also provide for ambulance and hospitalisation cost. Some policies provide protection for your overseas travel as well. Pay attention to the amount to be received by the nominee in case of a death or permanent disability.
What Is Not Covered In A PA plan
Natural death and death due to disease, suicide, under the influence of intoxicating substances, criminal intent, war, and pregnancy are not covered in a personal accident policy.


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