Is Personal Accident Cover Mandatory in Car Insurance?
Yes, in many cases, it is mandatory to buy a personal accident (PA) cover with a car insuranceRead more
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 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.
Who Needs to Buy a Personal Accident Cover?
The table below explains the most common situations to help you decide whether or not you need to purchase the personal accident cover:
| Situation |
Is PA Cover Required? |
| Buying your first car and no existing PA cover |
Yes |
| Already have valid PA cover |
No |
| Buying another car but already have a valid PA cover |
No |
| Company-owned car |
No (owner-driver cover is generally not applicable) |
When is a 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:
- A ₹15 lakh personal accident cover is mandatory for all individual owners-drivers of registered motor vehicles in India.
- 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.
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.
