No, you cannot remove personal accident cover to reduce your third-party premium. The law requires you to have third-party insurance, and the premium is a fixed rate; hence, even if you decide not to have the cover, nothing will change.
Motor insurance in India is regulated so that PA cover for owner-drivers is compulsory. However, exceptions are made for those who already own a PA policy, are not vehicle owner-drivers, or are among the exempted individuals. It is essential to understand when the cover may be waived, how this affects your premiums and what protection you will be sacrificing to decide wisely whether to buy or renew your car insurance policy.
What is the compulsory personal accident cover in a car insurance policy?
The compulsory personal accident cover is a fixed amount the insurer pays the owner-driver if they die or are badly hurt in a road crash. By law, this cover must be at least ₹15 lakh, and it costs a flat ₹750 a year, the same on a third-party or a comprehensive policy.
It is bought once for you, the owner-driver, not once for each car you own. So it sits on your motor policy as a small, separate line, with its own fixed price that you do not get to negotiate.
When can you opt out of the personal accident cover?
It is only possible to exclude the personal accident cover if you have an individual accident cover of at least ₹15 lakh already. This standalone policy should cover all the vehicles registered in your name, so one single policy should suffice for the cover on all your cars or bikes.
Accident cover is a one-time protection, and the law does not require you to buy it twice. Besides, there are certain situations when you can avoid motor policy accident cover as well:
- You do not have a valid driving licence, so there is no owner-driver whose protection is required.
- The vehicle belongs to a company, not a person; thus, there is no individual owner-driver.
- You have purchased the standalone personal accident cover this year for another vehicle that you own.
What happens to your claim if you skip the personal accident cover?
Removing your personal accident cover will not affect the third-party claim or the repair cover of your own car, but it will eliminate one particular payout. Your responsibility towards other people and the damages cover for your vehicle remain the same.
The only thing you give up is the lump sum payment to you or your family in the event of your death or permanent disability while driving. If you do not have a separate accident cover and a justified reason to skip it, the insurer will reintroduce it at your renewal. Therefore, by skipping it to save money, you typically end up with less protection for the same third-party premium.
Key takeaways
Owner-driver personal accident cover is a mandated component for all motor policies. Unless you are eligible for the opt-out, you cannot just drop it to save money.
Just removing the cover will not reduce the regulated third-party premium. It only gets rid of the separate ₹750 per year accident charge in your policy.
You can choose to opt-out only with an independent ₹15 lakh accident policy. With one such policy, you are covered for all the vehicles you own.
The true premium savings come from the parts of the policy that you control. A higher voluntary deductible, keeping the no-claim bonus intact, and an honest insured value matter way more.
Frequently asked questions
Yes. The law mandates owner-driver accident cover even with a third-party only policy. The only time this is not required is if you already have a separate accident policy that covers you for all the vehicles you own.
Yes. By law, the minimum accident cover for the owner-driver is set at ₹15 lakh with an annual premium of ₹750. The insurer can offer higher coverage, but can't reduce your motor policy coverage below the set minimum.
No. Owner-driver accident cover suffices for all vehicles in your name. Having just one policy of at least ₹15 lakh enables you to opt out of cover for other vehicles and just disclose your existing policy.
Yes. Standalone accident cover is available any time from any insurer. Having a personal accident cover as an owner-driver can serve as a reason to remove the accident coverage from your motor policy.
No, a third-party claim is processed independently and does not require that you have an accident cover. That cover is only for a separate compensation to you as the owner-driver and does not affect the compensation for the third party.
About the authors
Nikhila PS
Written by · Senior Content EditorNikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Rekhit Singh Kaushal
Reviewed by · Senior Director - Motor UnderwritingRekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
