The role of "Personal Accident Cover" in Motor Policy

Just by reading the term "Owner-Driver", we can understand that we are talking about the Owner of the Insured Vehicle who has a valid driving license. This is what has been defined by the Indian Motor Tariff too.

The Personal Accident Cover is mandatory with Motor Insurance policy considering the protection of the Car Owner as we are aware about the accident rates on our Indian roads. Hence, Personal Accident Cover also abbreviated as "PAC", is available for both- Comprehensive cover which includes the factor of Own Damage and Third-party cover too.

There is a myth that PAC covers only the Death coverage but it provides compensation for other disabilities caused due to accident too such as:

  • 100% compensation is provided in the case of Death.
  • 100% is provided in case of Loss of two limbs or sight of Two eyes or one limb AND sight of one eye.
  • 100% is provided in case of Loss of sight of two eyes.
  • 50% is provided in case of Loss of one limb and sight of One eye.
  • 100% is provided in case of permanent total disability other than what has been mentioned above.

Earlier, PA cover was provided in a nominal charge of Rs. 100 with a coverage of Rs. 2,00,000/-. In 2018, IRDAI announced a circular post which the charges and coverages both were increased i.e. the Insured were charged Rs. 750/- with an increased coverage of Rs. 15,00,000/-.

As per the new circular issued by IRDAI in 2019, the Compulsory Personal Accident (CPA) Cover has been made non-mandatory only in case if the Insured has a stand-alone policy providing the coverage of at least Rs. 15,00,000/-.Another condition where you can skip the CPA cover is if the vehicle is registered in a Company or Corporate's name.

This has made it possible for the citizens and vehicle owners to save some amount on the highly charged premiums of the Vehicle Insurance if they have already got themselves covered. Similarly, they can also compare what their Motor Insurance is charging for the same amount of coverage and what other General Insurers are charging and accordingly take decision from where to buy the same.

So from now onwards, when you are on road, you can be rest assured about your security as you are secured for meagre 1 Lacs or 2 Lacs but for 15 lacs which is a good amount to take care of you in case of any unfortunate incident.

Have a safe and secured drive with your Vehicle Insurance Policy!