Personal Accident Cover in Bike Insurance: Benefits & Coverage Details

India is the largest two-wheeler market in the world. In 2024, 18,437,528 units of two-wheelers were sold in India. A growing economy, rising middle-class income, and favourable demography are expected to push two-wheeler sales further upwards.

We already have the most congested streets in the world and the most dangerous. According to the official data released by the government, road accidents claim approximately 178,000 lives each year in India.

Two-wheelers, being the most preferred mode of transport among Indians, accounted for the highest share of road accidents. Therefore, there is a strong need to secure yourself and your family against any unfortunate event that may take place during your ride. You should obtain two-wheeler insurance to protect your bike against any damage due to an accident. A personal accident cover that usually comes with the policy as an add-on offers compensation in case of accidental injury or death.

What is Personal Accident Cover?

A personal accident cover is a two-wheeler insurance cover that provides compensation to the owner of the vehicle, or dependents, in case of accidental injury or death. An optional personal accident cover is also available for the pillion rider. The policy usually covers individuals under the age of 65 years and has a maximum compensation amount of ₹1 lakh.

Many insurers provide personal accident cover for two-wheelers as an add-on cover to their bike insurance policy. The cover is meant to enhance protection in case of an accident and can be bought by paying a small sum as a premium.

Importance of Personal Accident Cover

Having a personal accident cover with your motor insurance can prove beneficial in many situations, since accidents come unannounced and leave the afflicted in a huge financial mess. Here are some of the benefits that this cover can provide.

• Disability Compensation: Two-wheelers are a dangerous mode of transport as there is nothing protecting you from the road in case of a fall or a hit from another vehicle. Minor injuries are very common among riders, though a serious accident can also result in partial or total disability.

If it is a partial or total disablement, then the condition can seriously affect a person’s ability to earn a livelihood for his family. This can take a toll on the happiness and well-being of the dependents. With the protection offered by a personal accident cover for comprehensive two wheeler insurance, the insured can get 100% of the sum insured in case of total disability, and up to a certain extent if the accident causes partial disability, this is mostly 50% of the sum insured.

• Accidental Death Benefit: If the insured is met with an accident that results in a fatality, the loss and setback to his family can be immense. If the insured is the primary breadwinner, then the loss is not only of a loved one but also that of the provider.

The personal accident cover provides 100% of the sum insured in case of accidental death. This is amount can help the dependents tide over the loss and prevent the household from being surrounded by financial liabilities.

Is Personal Accident Cover Mandatory for Two-Wheelers?

According to the Motor Vehicles Act 1988, it is necessary for all two-wheelers to have third-party insurance. Seeing an increase in the number of accidents involving bikes, the government made personal accident coverage mandatory for all two-wheeler riders.

A few changes were made to these rules in 2019, which are given below-

• Personal accident coverage is necessary for all two-wheelers, whether you already have third-party or comprehensive bike insurance.
• In case of permanent disability of the vehicle owner during a mishap, personal accident coverage offers compensation of up to 15 lakh rupees.
• If you have an existing personal accident coverage, you do not need to purchase a separate coverage for riding a new bike. The same plan can provide coverage for both vehicles.
  

Coverage Under PA in Bike Insurance

Given below is a list of the inclusions and exclusions under personal accident coverage-

Inclusions of PA Cover

• In case of the death of the policyholder, the insured amount is offered as financial support to the nominee.
• If the policyholder loses both limbs, both eyes, or one limb and eyesight in one eye, 100% of the insured amount is given.
• If the policyholder loses sight in one eye or loses one limb, they receive 50% of the total amount insured under personal accident coverage.
• If the policyholder is permanently disabled by the accident, the person will receive 100% of the insured amount.

Exclusions of PA Cover

There are a number of situations in which the insurance company will not give the benefit of the policy to the policyholder. These are known as exclusions. The common ones are mentioned below.

• If the injury or death has resulted from intentional self-injury or a suicide attempt.
• If the injury or death has happened under the influence of liquor or drugs.
• If the injury or death is caused by performing an unlawful act.

Benefits of Personal Accident Cover in Bike Insurance Policy

The following are the benefits of personal accident coverage in two-wheeler insurance that you should know-

1. In the event of the unfortunate death of the policyholder, the nominee receives 100% of the insured amount as financial support.
2. In case of permanent or temporary disability, personal accident coverage provides proper compensation to the policyholder as per the terms of the insurance.
3. Personal accident coverage allows the policyholder to draw daily allowance for expenses such as hospital fees for 50 days in case of serious injuries.
4. Your insurance provider offers 24/7 assistance if you need to encash personal accident coverage during an emergency.

How Can You Buy Personal Accident Cover in Bike Insurance Online?

Buying a personal accident cover online is a simple process:

1. Choose a Reliable Insurer: Research and select an insurer offering comprehensive PA coverage.
2. Visit the Official Website: Go to the insurer’s website and navigate to the two-wheeler insurance section.
3. Provide Vehicle Details: Enter your bike’s registration number, model, and other required details.
4. Select PA Cover: Opt for the personal accident cover during the policy purchase process.
5. Make Payment: Complete the payment process using secure online methods.
6. Download Policy Document: After successful payment, download your policy document, which includes the PA Cover details.

How to Claim Personal Accident Cover in Bike Insurance Online?

Claiming PA Cover is a crucial step after an accident. Here’s how you can do it online:

1. Inform the Insurer: Notify your insurance provider about the accident immediately.
2. Fill Claim Form: Download and complete the claim form on the insurer’s website.
3. Submit Required Documents:
• Policy document
• FIR (First Information Report) copy
• Medical reports and bills (in case of injury)
• Death certificate and post-mortem report (in case of death)
4. Wait for Approval: The insurer will assess the claim and verify the documents.
5. Receive Compensation: Once approved, the compensation amount will be disbursed to the policyholder or nominee.

FAQs

1. What is a personal accident (PA) cover in bike insurance?

Personal accident cover in two-wheeler insurance provides compensation for injury or death of the policyholder to the bike owner or his nominee.

2. Is it mandatory to buy personal accident cover with a bike insurance policy?

Yes, under the Motor Tariff 2002, all two-wheeler insurance holders must have a personal accident or PA cover.

3. What documents are required for personal accident claims in bike insurance?

The claim form (duly filled and attested), along with a copy of FIR, bike insurance documents, driving licence, bike RC, etc., are required for filing a personal accident claim.

Conclusion

This blog is a general overview of a personal accident cover for two wheeler insurance and what it offers. The scope of coverage and benefits changes from insurer to insurer. But the fact remains that it is a useful insurance plan to have, as it takes care of the financial liabilities that can arise after an accident. This alone makes it an investment worthy of your attention.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.