Is Personal Accident Cover Mandatory in Car Insurance?

When you have a car in India, one question often comes up that 'Do I have to buy a Personal Accident (PA) cover with my car insurance?' Well, the short answer is yes. In many cases, it is mandatory to buy a PA cover with a car insurance policy. But, there are some important details you should understand.

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What is a Personal Accident Cover?

A personal accident cover, also referred to as PA cover or CPA (Compulsory Personal Accident) cover, is an added protection in car insurance for the insured vehicle's owner-driver. It provides essential financial protection to the policyholder in various circumstances, such as:

• Death or injury in a road accident involving your car.
• Partial of permanent disability such as loss of limbs or eyesight in an accident.
• Some plans may include limited medical expense coverage.

In short, a PA cover in car insurance acts as a safety net for you as a driver. Remember, it covers the human risk, not the vehicle.

When is PA Cover Mandatory?

As per IRDAI (Insurance Regulatory and Development Authority of India), every motor insurance policy must include a personal accident cover for the owner/driver. Let's understand how it works:

• PA cover is mandatory for the registered owner who drives the car.
• Since January 2019, IRDAI has allowed the PA coverage to not be a part of a bundled policy. So, if you already have a valid standalone personal accident cover, you don't need to purchase it for every new vehicle.
• In case of third-party insurance, a PA cover for the owner-driver must still be purchased.

So, yes, PA cover is mandatory unless you already have it as a standalone cover of the required sum insured.

What is the Minimum Sum Insured and Premium Under PA Cover?

As per current IRDAI guidelines, the compulsory personal accident cover provides a minimum sum insured of Rs. 15 lakh for the owner-driver. The premium for this cover is standardised, typically around Rs. 750 per year (plus taxes). If you opt for additional coverage or a standalone policy, the premium may vary based on benefits and insurer terms.

Why is Personal Accident Cover Important?

• Provides financial protection to the owner-driver's family in case of death or permanent disability.
• Ensures peace of mind by safeguarding against personal risk during accidents.
• Acts as a regulatory requirement ensuring basic protection for all vehicle owners.

What PA Cover Excludes?

• It doesn't cover damage to your car or third-party liabilities.
• It doesn't automatically protect passengers or paid drivers unless you buy an add-on cover for them.
• If you already have a standalone PA cover, you may not need the bundled policy again.
• It may not apply to non-owner drivers depending on the policy terms.

How to Check if You're Covered Under PA Cover?

To know if you have a valid personal accident cover in your car insurance, here are some pointers to check:

• Look for the 'Compulsory Personal Accident Cover for Owner-Driver' in your policy document.
• Make sure that the sum insured under PA cover is Rs. 15 Lakh or above.
• If you have a standalone PA cover, check if it meets the minimum requirements of IRDAI.
• If you own multiple vehicles, a single valid PA cover may suffice for all. However, you should check this with your insurer.

Final Thoughts

Driving a car comes with responsibilities. One of them is ensuring protection for you and your vehicle with the right car insurance. While the personal accident cover may seem like a small component of your four-wheeler policy, it can make a huge difference in case of an unforeseen event on the road, thereby ensuring your safety and peace of mind.