Personal accident cover is an important part of your car insurance policy. You pay a certain fixed sum of money and cover yourself in case of death or permanent injury in case of a car accident.
However, there are certain facts that you may not know about personal accident policy in car insurance. Let’s take a look:
Basics of Insurance
Before anything else, it’s important to understand that car insurance is mandatory for all vehicles plying on road, as per the law. There are two types of car policies in India: third party liability policy and comprehensive car insurance policy.
In third party liability, the damages caused to a third party in case of any accident or collision is covered. This is the mandatory component in car insurance as per law.
A comprehensive policy is a big umbrella in which you can cover all the liabilities arising from damage to the car. This policy covers the vehicle from damage caused due to theft, vandalism, fire or riots too and includes third party liability coverage.
A comprehensive car policy has four basic aspects:
- Covers damages caused to own car
- Covers damages caused to third party
- Personal accident covers for owner-driver
- Insures parts and accessories of the car
Personal accident coverage is one of the most important aspects which can be very useful in a times of crisis.
Facts You Didn’t Know about Personal Accident Cover
- Available in Third-Party Policy:
This cover is available in the third-party liability policy at a fixed premium of Rs. 50 (excluding taxes) and at a fixed sum assured of Rs 2 lakh. It covers only the owner-driver of the car, provided the owner-driver of the insured car has a valid driving license.
- Doesn’t Cover Paid Driver / Passengers
A personal accident cover doesn’t cover paid driver or the passengers travelling in your car. They need to be covered with separate riders under a comprehensive car insurance policy.
- When you take a comprehensive policy with a personal accident insurance add on, the premium will be divided into three parts between third party liability, damage to own car and personal accident coverage. However, the discount of no claim bonus will be available only on the premium paid for own damages component.
- After buying a policy, the policyholder should recheck the name, vehicle number and also, read the fine print of terms and conditions so that he will not have last minute surprises. In case of any issues, the policy holder can return the policy during the free look in period. Free look in period is within 15 days of receipt of policy document.
- In case an accident occurs, the family members should firstly inform the insurance company, who can assist them a step-by-step process to claim their losses. Also, they help you out in claiming for the accidental coverage which is included in comprehensive policy.
- The Insurance Company offers Personal Accident coverage to the owner-driver while not only driving but also while mounting or dismounting the vehicle or even travelling as a co-passenger. The only clause they have is that the event should occur within a period of 6 months of the accident.The payment is per the table below:
|Accidental Event||% of Sum Assured|
|Dismemberment of both limbs or loss of sight of both eyes or one limb and one eye||100%|
|Dismemberment of one limb or loss of sight of one eye||50%|
|Permanent and Total Disability||100%|
Features Covered in Personal Accident Cover
– Death Cover – In the ill-fated event of death of the insured due to an accident, the entire Sum Insured will be paid to the nominee.
– Permanent Total Disability Cover – In the disastrous event of permanent total disability of the person due to an accident, the insurance company will pay the entire Sum Insured to the person.
– Permanent Partial Disability Cover- In the event of permanent partial disability of the person due to an accident, the insurance company will pay a certain percentage of the Sum Insured, depending on the extent of disability.
– Temporary Total Disablement Cover- Weekly Benefit for accidents resulting in home confinement up to a limited number of weeks.
– Education Grant – In case of death or permanent total disability, the insurance company will pay a contribution for the benefit of dependent children towards their education, depending on the terms and conditions of the policy coverage.
– Transportation of mortal remains – In an extreme situation of accidental death, the insurance company will pay the nominee a certain sum towards carriage of the mortal remains to home.
– Accident Hospitalization Cover – Hospitalization overheads due to Accident resulting in claim for Death / Disablement.
All insurance companies offer personal accident coverage on car insurance. If you get your car insured from Bajaj Allianz car insurance company, the following advantages can be availed:
- Coverage of Rs.2 lacs to the policy holder
- Can include the paid driver for coverage of Rs.1 Lac
- Option to cover other passengers travelling in the car
- Compensated with coverage amount in case of permanent disability or death caused due to accident
With the increase in the number of general insurance service providers, it gets tough for a lay man to opt for the best insurance policy which suits his needs. An insurance policy can be bought by an insurance agent or dealer or online.