CPA (Compulsory Personal Accident) coverage in India is mandatory for all motor insurance policies, including third-party and comprehensive insurance. This ensures that you drive following the rules and regulations. This coverage provides insurance against death or disability resulting from an accident, with personal accident coverage. The policy payout percentage varies based on the type of injury sustained. Personal accident coverage can protect individuals from costly medical bills and vehicle repairs.
What is CPA Cover in Car Insurance?
If you purchase a comprehensive car insurance policy, your vehicle gets protection from various risk factors, including third-party liability. The CPA cover in car insurance is mandatory for comprehensive policies as well as for new vehicles purchased after September 1, 2018. It is important to note that you must pay the premium for CPA for the first three years. The comprehensive insurance policy provides protection from theft, vandalism, and natural disasters. Add-on covers can be purchased as needed. You can customise your policy to meet your individual needs.
Things Covered Under CPA Cover in Car Insurance
The CPA cover provides compensation in the following scenarios:
- Accidental Death: In the unfortunate event of the owner-driver's death due to a car accident, the nominee receives 100% of the sum insured.
- Permanent Total Disability: If the owner-driver suffers a permanent total disability, the compensation is as follows:
- Loss of two limbs or sight of two eyes: 100% of the sum insured.
- Loss of one limb or sight of one eye: 50% of the sum insured.
- Permanent total disablement from injuries other than those named above: 100% of the sum insured.
Situations When the CPA Cover Does Not Apply
The CPA cover has specific exclusions, including:
- Intentional Self-Harm or Suicide: No compensation is provided if the injury or death results from intentional self-harm or suicide.
- Driving Under the Influence: Accidents occurring while the owner-driver is under the influence of alcohol or drugs are not covered.
- Outside Geographical Limits: Incidents occurring outside the geographical area specified in the policy are excluded from coverage.
Is Personal Accident Cover a Mandatory Requirement?
Yes. All insurance companies are required to offer CPA to all policyholders. Both third-party and comprehensive policyholders must have at least Rs 15 lakh of coverage. You can pay a higher premium to enhance your scope of coverage. Many insurance companies provide various options to meet your specific needs.
Benefits of a Compulsory Personal Accident Policy Cover
- The process of purchasing personal accident insuranceis straightforward, with minimal documentation and no medical tests required.
- Accident insurance is essential in preparing for unexpected situations resulting in disability.
- Accident coverage compensates the policyholder's family, enabling them to maintain their lifestyle and pay off liabilities after the insured person's demise. Knowing that your family will be financially secure even in your absence provides peace of mind.
- Personal accident policies offer worldwide coverage with no geographical limitations to compensation. Claim processes are simple, and ambulance expenses are usually covered.
How to Claim CPA Cover in Car Insurance?
To claim the CPA cover, follow these steps:
- Immediate Intimation: Inform your insurance company about the accident and the losses incurred as soon as possible.
- Documentation: Obtain a First Information Report (FIR) from the police and a Final Report (FR). Collect medical records, hospital bills, and any other relevant documents.
- Claim Form: Fill out the claim form provided by the insurer accurately, attaching all necessary documents and photographs of the accident scene.
- Submission: Submit the completed claim form and documents to the insurance company for verification.
In case of the owner-driver's death, the nominee should initiate the claim process. Upon successful verification, the insurer will disburse the compensation as per the policy terms.
Conclusion
The Compulsory Personal Accident (CPA) cover is an indispensable component of car insurance, offering crucial financial protection to owner-drivers against the uncertainties of road travel. Before purchasing a car insurance policy, reviewing and understanding its terms and conditions, inclusions, and exclusions is crucial. Policyholders can ensure appropriate coverage to protect themselves and their families by doing so. You can buy 4-wheeler insurance online from the website of the insurer or an aggregator.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. 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.