A car accident, when it occurs, has the potential to damage not only your car but also leave you injured as well. With car accidents becoming a common occurrence, protecting yourself along with your car becomes critical. This is where a personal accident insurance cover comes into the picture. A benefit-based policy, it provides coverage to the car driver in case of disability or death caused due to a car accident. As per the India Motor Tariff, 2002 it is legally necessary to have a personal accident (PA) cover if you want to drive your car on Indian roads. Insurers offer PA cover along with their third party car insurance policies as well as comprehensive policies.
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Different Scenarios in Which PA Cover Offers Coverage
In case of a permanent disability – If a car accident leads to the car driver developing a disability of a permanent nature that can cause lifetime impairment, the car insurance provider is liable to pay a certain amount of the sum insured to the policyholder as mentioned in the policy.
In case of temporary disability– If the policyholder suffers damages that lead to temporary disablement, during a car accident, then the car insurance provider is responsible for paying financial aid at regular intervals as mentioned in the policy.
In the case of partial disability– Here, the amount of the sum insured paid will be determined by the extent of the disability incurred.
In case of death – The sum insured of the policy shall be paid in a lump sum to the policyholder’s nominee if a car accident results in the insured individual’s death.
Reimbursement of ambulance charges – Some insurers even offer to reimburse certain medical costs (like ambulance charges) incurred during medical treatment necessitated by an accident.
Children’s education benefit – In case of the death of the policyholder in a car accident, some car insurance providers may offer to cover the cost of the dependent children’s education up to a specified limit.
Thus, a PA cover ensures that your medical costs and household expenses continue running smoothly so that you and your loves ones can focus on recovery.
When Should you Waive off a PA Cover?
Even though getting a PA cover is mandatory, there are a few instances where you can waive it off. These are-
If you Already Have a Standalone Personal Accident Policy from your Health Insurance Provider
Since you are already insured under the personal accident policy, you do not need to purchase a separate cover along with your car insurance policy. However, for this feature to be valid, your standalone policy should have a minimum sum insured of Rs 15 lakhs.
If you Already have a PA Cover from your Previous Car Insurance
Earlier, it was mandatory to avail the PA cover every time you purchased a car insurance policy. However, this meant that you had to purchase a new PA cover if you were buying a car for the second time, even though you already had one from your previous car. In the long run, it just added to the premium cost even as the coverage remained the same.
Considering this situation, the IRDAI announced that beginning from January 2019, those who already have a PA cover from another active car insurance policy can waive off on this cover the second time.
Do remember that the features of a PA cover may differ between car insurance providers. Make sure to do your research well before you buy four-wheeler insurance for your car.