Q1. What is personal accident cover in vehicle insurance?

Ans: The personal accident cover in commercial vehicle insurance is a useful and mandatory add-on that provides compensation in case of accidents, death, or disability, of up to â¹15 lakhs.

Q2. What is covered in commercial vehicle insurance?

Ans: A commercial vehicle insurance offers coverage to goods and passenger-carrying vehicles, such as cabs, trucks, tankers, tippers, etc., against damages caused due to accidents, natural disasters, man-made disasters, and more.

Q3. What does personal accident insurance cover?

Ans: A personal accident insurance covers a death, permanent, or partial disability, caused to the owner-driver.

Q4. Which cover is excluded from commercial vehicles policies?

Ans: A commercial vehicle insurance does not offer coverage for any damages or losses incurred outside the geographical area, when the driver is without a license or under the influence of alcohol or drugs. It also does not cover regular wear and tear and mechanical or electrical breakdowns.

Q5. Who is eligible for Personal Accident Cover in commercial vehicle insurance?

Ans: All motor vehicle owners (owner-drivers) must purchase the personal accident cover in commercial vehicle insurance.

Q6. Is it necessary to buy PA Cover with every vehicle policy?

Ans: You need to have at least one valid PA Cover worth â¹15 lakhs. If you already have a personal accident cover policy, you do not need to repurchase it when buying or renewing commercial vehicle insurance.

Q7. What is the maximum compensation available under PA Cover?

Ans: As per IRDAI guidelines, the maximum compensation under the mandatory PA cover is â¹15 lakhs.

Q8. Does PA Cover provide compensation for partial disabilities?

Ans: Yes, compensation is provided for both total and partial disabilities depending on the severity of the injury.

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Personal Accident Cover for Commercial Vehicle Insurance

Commercial vehicles often come with an increased risk of accidents due to long hours on the road, heavy loads, or risky driving conditions. While an insurance policy can cover damages caused to the insured vehicle, the physical harm caused to the owner-driver can lead to severe financial distress. Keeping the same in mind, a Personal Accident (PA) cover is not just a useful add-on, but also a mandatory one as per the IRDAI. It ensures financial support in case of injury, disability, or death due to an accident involving the insured commercial vehicle.

What is a Personal Accident Cover for Commercial Vehicle Insurance?

The compulsory personal accident cover is a mandatory add-on under a commercial vehicle insurance that provides compensation in case the owner-driver suffers death or permanent or partial disability in a road accident. As per the Insurance Regulatory and Development Authority of India (IRDAI), it is mandatory for all vehicle owners to have this add-on.

The IRDAI offers a compensation of up to ₹15 lakhs in case of any mishap. Policyholders must purchase this add-on with either a third-party commercial vehicle insurance or a comprehensive policy at an additional premium.

What are the Benefits of Personal Accident Cover?

The following are some of the common benefits of a personal accident cover for commercial vehicle insurance:

Financial Protection: This commercial vehicle insurance add-on offers compensation for accidental death or injuries that can lead to temporary or permanent disability.
Supports the Family of the Policyholder: In case of fatal accidents, death, or disability, the add-on offers a lump-sum payout that can be of immense help to the dependents of the policyholder.
Covers Various Accidental Injuries: The cover extends to any accidental injuries during the use of the vehicle, such as during driving, mounting, or dismounting.
Minimal Premium: The add-on is available at a minimal additional premium, but can offer coverage of up to ₹15 lakhs.
Mandatory for Owners: Helps avoid fines or policy rejections due to non-compliance with motor insurance rules.

Is Personal Accident Cover for Commercial Vehicle Insurance Mandatory?

Yes. As per the Insurance Regulatory and Development Authority of India (IRDAI), every owner-driver of a commercial vehicle must have a PA Cover of up to ₹15 lakhs.

If you already have an existing PA policy that meets this requirement, you are not obligated to buy it again when renewing your vehicle insurance. However, in most cases, this cover is issued with all motor vehicles and is thus bundled with both third-party and comprehensive commercial vehicle insurance for individual owners.

What is the Compensation Under Personal Accident Add-On Cover?

The compensation structure for the personal accident add-on is given below:

Type of Injury	Compensation (% of Sum Insured)
Accidental Death	100%
Permanent Total Disability	100%
Loss of Two Limbs or Eyesight Two Eyes Loss of One limb and Eyesight of One Eye	100%
Loss of One Limb OR Eyesight of One Eye	50%

Additional Personal Accident Cover With Commercial Vehicle Insurance

In addition to the mandatory PA cover for the owner-driver with a commercial vehicle insurance policy, policyholders can also buy the following PA covers for the other staff members:

PA Cover for Paid Driver: The personal accident cover for the paid driver provides financial assistance in case of injury, disability, or death of the paid driver due to an accident. This cover is in line with the Workmen Compensation Act and ensures that the driver and their family receive the necessary financial compensation.
PA Cover for Conductor: The PA cover for the conductor is an add-on to cover medical expenses, disability, or accidental death or injury incurred by the conductor.
PA Cover for Cleaner: The PA cover for cleaners offers compensation for accidental death, disability, or injury incurred by the cleaner during vehicle operation.

Even though the abovementioned personal accident covers are not mandatory, they help to cover the personnel and increase the overall safety.

What is not Covered Under Personal Accident Cover?

A personal accident cover for commercial vehicle insurance does not offer coverage in the following scenarios:

Accidents that occur under the influence of alcohol or drugs
Injuries sustained while driving without a valid driving licence
Accidents during participation in criminal or illegal activities
Injuries or death caused by suicide or self-inflicted harm
Accidents outside the geographical scope of the insurance policy
Injuries sustained while using the vehicle for purposes other than those permitted or mentioned in the policy wording, such as racing, speed testing, etc.

FAQ's

Q1. What is personal accident cover in vehicle insurance?

Ans: The personal accident cover in commercial vehicle insurance is a useful and mandatory add-on that provides compensation in case of accidents, death, or disability, of up to ₹15 lakhs.
Q2. What is covered in commercial vehicle insurance?

Ans: A commercial vehicle insurance offers coverage to goods and passenger-carrying vehicles, such as cabs, trucks, tankers, tippers, etc., against damages caused due to accidents, natural disasters, man-made disasters, and more.
Q3. What does personal accident insurance cover?

Ans: A personal accident insurance covers a death, permanent, or partial disability, caused to the owner-driver.
Q4. Which cover is excluded from commercial vehicles policies?

Ans: A commercial vehicle insurance does not offer coverage for any damages or losses incurred outside the geographical area, when the driver is without a license or under the influence of alcohol or drugs. It also does not cover regular wear and tear and mechanical or electrical breakdowns.
Q5. Who is eligible for Personal Accident Cover in commercial vehicle insurance?

Ans: All motor vehicle owners (owner-drivers) must purchase the personal accident cover in commercial vehicle insurance.
Q6. Is it necessary to buy PA Cover with every vehicle policy?

Ans: You need to have at least one valid PA Cover worth ₹15 lakhs. If you already have a personal accident cover policy, you do not need to repurchase it when buying or renewing commercial vehicle insurance.
Q7. What is the maximum compensation available under PA Cover?

Ans: As per IRDAI guidelines, the maximum compensation under the mandatory PA cover is ₹15 lakhs.
Q8. Does PA Cover provide compensation for partial disabilities?

Ans: Yes, compensation is provided for both total and partial disabilities depending on the severity of the injury.