Mandatory for car insurance owner with a valid license must have personal insurance coverage for their own safety and security.
The Insurance Regulatory and Development Authority of India (IRDA) has stated that they would begin revealing the details of vehicle insurance policyholders’ personal accident (PA) protection from January 1, 2019.
The purpose for this is to minimize the total cost of vehicle ownership, since before, the IRDA raised the mandatory personal accident coverage amount from Rs 1 lakh to Rs 15 lakh, resulting in an increase in auto insurance premiums prices.
According to the IRDA rule, you may now purchase a separate ‘compulsory personal accident protection’ policy to protect yourself against unintentional risks associated with driving your own car. This auto insurance coverage is available for every sort of vehicle, including private cars, taxis, two-wheelers, and commercial vehicles (trucks, buses, etc.).
In India, all automobile owners are required to carry personal accident insurance, regardless of whether they choose a third-party liability-only coverage or a complete policy for their vehicle. If you do not have personal accident insurance, you may face penalties under the Motor Vehicles Act.
According to the Motor Tariff 2002, every automobile insurance policy must include personal accident coverage. It is included in both the comprehensive and third-party liability-only policies.
Raj Kumar, senior manager of sales at PolicyX.com, an insurance online aggregator, explains: “Personal accident insurance protects you and your family in the event of an accident, as the name implies.” It assists in reimbursing all medical expenditures after an accident and gives compensation to the nominee in the event of incapacity or death.”
In the event of death as a result of an accident, personal accidental insurance covers up to 100% reimbursement of the amount guaranteed. In the case of disability, the amount is computed based on the degree of disability – permanent or temporary.
Mandatory For Car Insurance Coverage Amount
The extent of coverage under the personal accident insurance is determined by the benefit chosen by the insured. The death benefit is the sole benefit provided under the basic coverage. It also covers death, permanent whole disability, and permanent partial disability for a broader range of coverage. The full coverage includes compensation for death, permanent entire disability, permanent partial disability, and temporary total disability.
Considerations When Obtaining PA Coverage
When purchasing personal accident insurance, you should pay close attention to the following excerpts. The insurance should cover all of the everyday activities that potentially result in an accident at home or at work. It should cast a broad net of protection. Pay close attention to the claim settlement record of the insurance company from whom you choose to acquire your coverage. Accidental death, fractured bones, chronic disability, and burns should all be covered under the PA policy. It must also cover ambulance and hospitalization expenses. Some insurance provide coverage for international travel as well. Take note of the amount to be received by the candidate in the event of death or permanent incapacity.
What Isn’t Included in a PA Plan?
India has the world’s biggest two-wheeler market. In fiscal year 2017, a total of 19.91 million two-wheelers were sold, with 88 percent of them sold in the domestic market. A booming economy, increasing middle-class income, and favorable demographics are likely to drive two-wheeler sales even higher.
Natural death and death caused by sickness, suicide, intoxication, criminal intent, war, and pregnancy are not covered by a personal accident insurance.
The below-mentioned causes of injury or death are not covered under a group personal accident insurance: Natural Death. Death or injury while under the influence of intoxicating liquor or drugs. Death or injury while engaged in an adventure sport or hazardous activity.