Personal Accident Cover in Car Insurance

Personal accident cover ensures that a lump sum payment is made to either yourself or your relatives in case of injury or death to yourself due to driving your own personal car independently of any payments by the auto insurance you have on your car. Personal accident cover is compulsory in India, where there is a very small premium required, and the process differs from third-party and own-damage insurance.

PA covers protect the insured person, not the car. Whereas other car insurance policies pay for the damages that occur to the vehicle or compensate liability claims made to third parties, PA cover provides a pre-decided amount of money to the insured individual or the nominees in case of permanent disability or death in an accident caused while driving the car.

Yes. In line with a Madras High Court guideline, IRDAI has made a mandatory provision for a Personal Compulsory Accident (CPA) cover of ₹15 lakh for the owner-driver with each motor insurance policy as long as the owner-driver does not already have an equivalent policy elsewhere. The directive affects all types of vehicles, whether it is two-wheelers or four-wheelers, and applies equally to the ones that are only valid for third party insurance and the ones that offer a comprehensive cover, car insurance buyers who want this type of protection cannot proceed without it unless the existing cover is submitted as proof and then an opt-out form is properly signed.

Under Acko Personal Accident Cover you can avail the below coverage benefits:

Under these circumstances, Acko undertakes to pay the compensation as per the below scale for death or bodily injuries sustained by the owner-driver of the car:

This means, there are essentially four different types of accident covers.

As mentioned, the policy covers accidental death and permanent total disability, such as:

Under this insurance policy, the following are not covered:

If, by chance, you have been involved in an accident while you are working in an area with a high risk environment and you have been rendered disabled to the degree where you no longer can support yourself and your family, then an insurance for accident will help you with this. An accidental PA policy will offer you and your family a financial back-up in case of unforeseen financial emergencies. Of course, anyone can profit from a personal accident insurance policy. There are several benefits and advantages under this insurance cover, they are:

A ₹15 lakh compulsory cover has to be insured. The IRDA fixed a uniform rate of ₹425 per year at a time plus 18% GST on a per car basis so your out-of-pocket costs could be around ₹500 per year irrespective of your car's make, model, or price. This uniform pricing is an intentional move of IRDAI such that both a luxury car owner and a low-budget hatchback owner are charging the same human basic protection baseline amount.

If you desire cover more than ₹15 lakh, insurers will raise the sum insured in multiples of ₹1 lakh or ₹5 lakh for you, on the payment of premium. The additional premium will generally be from ₹350 to ₹1,140 depending on your car, city, and IDV.

NB: The mandatory ₹15 lakh CPA will only pay in the cases of death or permanent disablement, it does not contain a temporary disability payment. If your wish is a payment for temporary disability (say, a weekly money reward if you cannot work for that time), this can be achieved by an additional riders in a standalone personal accidental policy or IRDAI Saral Suraksh Bima product and not at through the compulsory cover which comes with the car insurance policy.

Coverage differs depending on who's involved and which add-on is in place:

Add-on costs for a paid driver typically start around ₹50 per year, while unnamed passenger cover ranges from roughly ₹5 to ₹100 per passenger depending on the sum insured chosen.

Yes, but it's conditional, and proof is required. Should you have obtained a personal accident standalone policy earlier whose sum insured is at least ₹15 lakh, or if you already bought the CPA for one of your vehicles, you can actually skip buying CPA cover when getting another vehicle insured. However, you've to provide documentary proof of the existing cover that proves you have such a cover when dealing with the purchase of your new insurer, only claiming verbally that you have is not going to suffice alone.

Here are the reasons why you should buy the compulsory PA cover on ACKO.

1. Legal compliance

The most important reason to buy CPA insurance is that it is legal compliance. Since it is mandatory, not owning one can invite penalties.

2. Coverage against accidental risks

The compulsory PA cover protects you against injuries and self hazards caused due to an accident.

3. Rs.15 lakhs coverage for accidental death

Your dependents get Rs.15 lakhs in case of your demise due to an accident to support their future.

4. Up to Rs.15 lakhs coverage for permanent disability

In case of a permanent disability arising from an accident, you get up to Rs.15 lakhs to support your finances or treatment costs.

5. 50% of sum insured in case of temporary disability

In case of a temporary disability, you get up to 50% of the sum insured to support your finances or treatment costs.

6. Paperless and no documentation experience

You can buy the compulsory PA cover online with ACKO. There is no paperwork involved to purchase the PA cover, and you don’t have to submit any documents to buy the cover.