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Passenger Cover in Car Insurance

Team AckoJun 27, 2022

Accidents happen and maybe it was not your fault. The result of an accident can be injuries or even death. As per the mandate of the Insurance Regulatory and Development Authority of India (IRDAI), Personal Accident cover is compulsory for every car insurance to cover the owner-driver of the insured vehicle in the event of death, temporary or permanent disability in the form of financial coverage. While the owner-driver is covered, passengers are sometimes victims of an unforeseen accident and do not enjoy the benefit of insurance coverage. To address this concern, insurers provide the add-on known as Passenger Cover in car insurance to cover passengers of the insured car.

Passenger Cover in Car Insurance

What is Passenger Cover?

The standard comprehensive insurance policy does not cover passengers in the insured vehicle policy. This applies to both commercial/transport as well as private vehicles. In case of an accident, there is a possibility that passengers can be injured or even lead to deaths. To provide extended coverage which includes passengers, insurance companies offer an add-on cover. This is known as Passenger Cover. It requires an additional premium to the regular comprehensive policy and will take care of financial liabilities arising out of death, temporary or permanent disabilities of passengers in the vehicle.

What is Passenger Cover in Car Insurance?

Passenger cover in car insurance is financial coverage for passengers riding in the insured car. While it is mandatory to include the Personal Accident cover for the owner-driver of the insured car, covering passengers is not compulsory. But that should not stop you from covering passengers who could be your family members or even if they are customers if you are driving a transport/commercial car. Through this add-on, you can insure up to three passengers, in case of a 3-passenger seater car, apart from the Personal Accident cover for the owner-driver. This makes the policy robust and offers wide coverage. In case of an unfortunate accident, you as the owner of the car is liable for the injuries sustained by the passengers. This add-on covers the liabilities towards passengers as the owner of the car.

Also, read: Loss of Personal Belongings Add-on in Car Insurance

How Does This Add-on Cover Work?

The standard comprehensive car insurance policy offers financial protection to the insured vehicle and the owner-driver in case of accidents. So, if you are the owner-driver of the insured vehicle, then in case of death or permanent disability, the insurance company will pay the stipulated insured amount to the nominee of the insurance policy. However, regular car insurance does not cover passengers during such incidents. The passengers will have to pay from their pocket to pay for treatment of injuries.

As the owner of the insured vehicle, you have a responsibility towards passengers riding along with you. Having the option to cover the liabilities arising out of injuries or death of passengers will give the complete freedom to take care of the treatment of injuries to passengers. This way you get to cover the car and all riding inside the car are well covered financially. Passenger Cover certainly adds some value to your standard car insurance policy.

The Scale of Compensation Under Passenger Cover

By choosing the passenger add-on cover, the insurer will pay compensation for bodily injuries sustained while travelling, mounting or dismounting the insured vehicle and caused by an accident. The insurer will pay compensation as stated below:

Type of Injury Compensation (%)
Death 100
Loss of sight of two eyes or two limbs/sight of one eye and one limb 100
Loss of sight of one eye or one limb 50
Permanent disability from injuries other than mentioned above 100

Benefits of Buying Passenger Cover:

As a responsible owner of the car, you have obligations towards passengers in case of an accident which leaves the passengers injured or even with disabilities. Including the Passenger Cover Add-on to your regular Comprehensive insurance policy, offers a wide coverage for you and your passengers. Below are a few of the benefits of buying passenger cover:

  • Covers medical treatment costs for passengers in case of an accident.

  • Provides financial assistance in case of the death of passengers.

  • Provides disability liability cover to passengers of the insured vehicle.

  • Reduces your financial liabilities in such situations since you can claim for the owner-driver and passengers of the vehicle.

  • Avoid legal hassles if the insured vehicle is a commercial passenger car.

  • Reduces your stress in case of accidental injuries to passengers as well as the driver of the car.

What is Not Covered in Passenger Cover?

Like all insurance add-on covers, the passenger cover also comes with certain exclusions as well. Below are the details:

  • Some insurance companies do not offer financial assistance in case the passenger(s) have stepped out while the accident took place.

  • In case of a private car, the add-on does not cover more than three passengers and they have to bear the cost of treatment in case of an accident and the insurance provider will not provide any financial assistance.

  • Physical defect or infirmity due to attempted suicide or intentional self-injury suicide.

  • An accident which occurred while such a person is under the influence of alcohol or other intoxicating substances.

Also, read: Engine Protection Cover in Car Insurance

How to File a Passenger Claim in a Car Accident?

You may wonder how to file a claim as a passenger of the insured vehicle. The process to register a claim for passengers is simple, especially through online car insurance mode. The entire process is easy and hassle-free. Follow the steps below to file a passenger claim in a car accident:

  • Step 1: Call your insurance company and inform them about the accident and the extent of damage to your vehicle and if passengers are injured.

  • Step 2: File a First Information Report (FIR) at the local police station.

  • Step 3: In case the accident involves a third party, ensure you take the third-party’s insurance details and the details of the vehicle.

  • Step 4: Raise a claim with the insurer who will assign a surveyor to assess the damage so that the claim is settled accordingly.

  • Step 5: The insurance company will provide financial assistance towards medical treatment of injuries to the passengers of the insured vehicle or pay the specified insured amount in case of death of passengers.

Frequently Asked Questions About Passenger Cover in Car Insurance:

Below are some of the common queries about passenger cover in car insurance:

Does bodily injury cover passenger injuries in car accidents?

The standard comprehensive car insurance policy does not provide financial assistance for treatment of injuries to passengers of the insured vehicle. However, if you buy passenger cover as an add-on to the standard insurance policy, the insurance company will provide financial assistance towards the treatment of bodily injuries sustained by passengers of the car.

Can I buy the passenger cover along with third-party insurance?

No, you cannot buy the passenger add-on cover along with third-party car insurance. It can be bought along with the Comprehensive car insurance policy as an add-on cover. You have to pay a slightly higher premium but will cover passengers of the insured car in case of an accident.

How many passengers does the passenger add-on cover?

If it is a small vehicle like a car which can carry not more than three passengers, then the insurance will be limited to three. However, this depends on the type of vehicle and a larger vehicle can insure passengers up to the seating capacity of the vehicle. Insurers do not provide financial assistance to passengers more than the stipulated seating capacity of the vehicle. They will have to bear the expenses and the insurance company is not liable to them.

Does the passenger add-on include the paid driver of the insured vehicle?

No, it does not. You can buy a separate add-on to include your paid driver so that even the driver is protected in case of an accident. Passenger add-on includes those other than the driver of the car.

What is the cost of the passenger cover?

It depends on the insurance company. The cost of the passenger add-on cover depends upon the sum insured and the insurance provider. You need to check with the respective insurance company for more details about the cost of the add-on.

Does comprehensive car insurance policy cover passenger injuries in an accident?

No, it does not. The standard comprehensive car insurance does not cover passenger injuries in case of an accident. However, with the addition of the Passenger Cover add-on, the insurance company will provide financial assistance towards the treatment of bodily injuries sustained by passengers of the insured vehicle.

Can I buy the passenger cover along with the comprehensive car insurance plan?

Yes, the passenger add-on cover is available or can be bought along with the comprehensive policy only. You cannot buy the add-on as a standalone cover. You will have to pay a slightly higher premium; however, you can cover your passengers as well.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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