A Complete Guide to Personal Accident Coverage

Roads are unpredictable, but that shouldn’t stop you from enjoying a nice ride in your car. The risk of accidents and their financial implications shouldn’t worry you while you’re cruising down the lane. But you may ask, how? – By getting personal accident cover.

Personal accident coverage provides compensation in case you suffer injuries or disabilities in a road accident. In the unfortunate event of death, the policy even compensates the family, ensuring they can cover their expenses without hassle.

This is why it is important to have a personal accident cover along with your standard car insurance policy, so you can focus on recovery rather than worrying about its cost.

What Is Personal Accident Coverage in Car Insurance?

Personal accident cover in a car insurance policy provides financial support to the policyholder and nominees in the event of accidental injuries, disabilities, or death. This cover ensures that unexpected physical traumas don’t translate into financial disasters.

The Indian Motor Vehicles Act of 1988 mandates that owners include personal cover with their motor insurance policy, whether for a bike or a car insurance policy. 

Features of a Personal Insurance Cover

Here are some features of a personal accident cover:

• The cover provides a minimum insured amount of ₹15 lakhs.
• If you suffer a permanent total disablement from injuries due to an accident, you will receive 100% compensation. This includes loss of both limbs, both eyesight, or one limb and eyesight.
• The personal cover also provides 50% of the insured amount if an accident results in the loss of a limb or one eyesight. The percentage of compensation depends on the extent of disability.
• If the accident results in the policyholder’s death, the nominee is entitled to receive 100% of the insured amount as compensation.

Note: The Insurance Regulatory and Development Authority (IRDAI) has fixed the premium at ₹750 for personal covers of  ₹15 lakhs that are bundled with a car insurance policy.

Damages excluded from Personal Insurance Cover

Here are some damages you can’t claim with a personal cover:

• Intentional injuries 
• Death by suicide
• Damage during civil or foreign war
• Army related losses
• Participation in violent public disorder
• Injury caused by intoxication

Why Is Personal Accident Coverage Important ?

Accidents are unpredictable and can lead to severe financial strain, especially if they result in permanent disability that prevents one from working. Personal accident coverage acts as a financial safety net, ensuring that an unforeseen event doesn’t lead to economic ruin. It is important to get a personal accident coverage due to the following reasons:

1. Financial cover for injuries

The insurance covers medical expenses and rehabilitation costs to ensure you get proper treatment post-accident. This includes hospitalisation fees, medication costs, and payments for physical therapy or any other rehabilitative services you need to recover completely from the accident.

2. Compensation for death or disability 

If an accident leads to a permanent accidental disability or death, the cover provides a guaranteed compensation of up to 100% of the insured amount. This is especially beneficial if you are the sole provider for your family, as it allows them to cover their immediate and future needs. 

3. Financial security for family

While an accident is undoubtedly a traumatic event for a family, it can also lead to significant financial challenges. Having a personal cover ensures that your family can cover your medical bills. In case of an unfortunate event like death, the family can also use the funds to pay for funeral expenses, settle debts, make investments, create education funds, etc.

4. Covers vehicle owners and passengers

While the standard personal cover protects only the vehicle owner, you can extend its benefits to cover passengers as well by paying an extra premium. Similarly, if you’ve hired a chauffeur to drive your car, you can also include them in your cover. 

 How is Personal Accident Insurance different from other plans?

Eligibility for Personal Accident Coverage

Here are the eligibility criteria you must match to avail of a personal accident cover :

• In general, you need to be between 18 – 65 years old for accident cover. However, the maximum age may vary from insurer to insurer. 
• You must possess a valid driving license.
• You must not have a pre-existing condition that can hinder your driving ability.

Key Takeaways

Personal accident cover helps policyholders pay for the treatment and recover from injuries. Its protection even extends beyond medical expenses and recovery. In case of an unfortunate event like death, it ensures that the victim’s family has the necessary funds to meet their needs. Consider using platforms like PhonePe to explore and manage personal accident cover, ensuring comprehensive protection for you and your family.