Car insurance is vital for all vehicle owners in India. While third-party liability insurance is compulsory, there's another important coverage called Personal Accident (PA) Cover. But is personal accident cover mandatory for car insurance? This post explains what PA cover is and whether it’s mandatory for car owner-drivers.
What does Personal Accident Cover Mean?
Personal Accident Cover is an insurance plan that provides financial protection to the owner-driver in case of an accident involving the insured car. It covers medical expenses if the owner-driver gets injured in a car accident.
A Personal Accident Cover provides several important benefits for owner-drivers, such as:
- It pays for all medical expenses if the owner-driver gets injured in a car accident. This includes costs for treatment, hospital stays, and medicines.
- If the car accident leads to permanent disability for the owner-driver, the PA Cover will provide a fixed amount (i.e., the sum insured) to help him/her financially.
- If the unfortunate situation arises where the owner-driver passes away due to a car accident, the PA Cover ensures that the family receives the sum assured. This death benefit helps support the family financially during a difficult time.
PA Cover ensures that the owner-driver or his/her family doesn't have to bear the financial burden of medical treatment or loss of life due to a car accident.
Is PA Cover Mandatory for Car Insurance in India?
Now, let’s look for an answer to the question: “Is it mandatory to take personal accident cover in India?”
The Motor Vehicles Act of 1988 in India makes it compulsory for all vehicle owners to have at least a third-party insurance policy. This policy covers any liabilities arising from third-party claims against the insured vehicle, such as bodily injury or property damage. However, it does not cover damages to the insured vehicle or injuries to the owner-driver.
To address this gap, the Insurance Regulatory and Development Authority of India (IRDAI) has made PA Cover mandatory for all car owner-drivers. This means every car insurance policy in India must include PA Cover for the owner-driver. The main reason for making PA Cover mandatory is to ensure that vehicle owners and their families are financially protected in case of personal injuries or loss of life resulting from a car accident. This category of insurance covers the medical expenses of owner-drivers and provides a death benefit; this reduces the financial burden on owner-drivers or their families.
Conclusion
Personal Accident Cover (PA Cover) is a mandatory component of car insurance policies in India. The Motor Vehicles Act and IRDAI have made PA Cover mandatory to ensure comprehensive coverage for vehicle owners, addressing personal injuries and fatalities resulting from car accidents. By having PA Cover as part of their car insurance policy, vehicle owner-drivers can have peace of mind knowing they and their families are financially protected in case of an unfortunate accident.
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