Personal Accident Coverage for Bike Riders

India ranks 1st in the world in terms of accidental deaths, so it is important for individuals to secure themselves with financial support against road accidents.^[1] After all, medical expenses skyrocket each year, digging a big hole in our pockets.

Personal accident coverage provides reimbursement for medical expenses resulting from the accident, hospitalization, partial paralysis to complete paralysis, and a compensation amount in case of death. Let’s explore the importance and features of personal accident coverage for bike insurance policies. 

Importance Of Personal Accident Cover

Rohan, a 35-year-old delivery driver, has a family depending on him. With a physically demanding job, he opts for basic third-party bike insurance, prioritising only affordability. While navigating a busy intersection, he tumbled off his bike and sprained his ankle. 

Financial strain :

Even though the injury is minor, Rohan faces immediate challenges:

• Medical expenses – While not critical, a sprained elbow requires treatment, pain medication, and physiotherapy, which may cost at least ₹10,000. It will impact his already tight budget. 

 Personal Accident (PA) cover advantage :

Had Rohan chosen PA cover, even as an add-on to his basic insurance, he would have enjoyed the following benefits: 

• Medical expense reimbursement – The PA cover would reimburse him for the medical bills related to the accident (subject to policy limits), alleviating financial stress. 
• Daily allowance – Some insurance providers offer a daily allowance for lost income due to injuries, compensating Rohan for missed workdays. 
• Disability benefits – In case of severe injuries resulting in partial or permanent disability, the PA cover offers lumpsum benefits, ensuring long-term support for his family. 
• Reduced Stress – Rohan can recover without worrying about finances because he knows the PA cover provides financial protection for his family. 
• Increased security – Knowing the PA cover protection, Rohan can return to work, delivering packages again on his bike without worrying about the future. 

 Even though Rohan escaped only with minor injuries, the accident results are often unpredictable. A small investment in PA cover can safeguard you and your family’s financial well-being in case of unforeseen events. Don’t let a simple oversight leave you vulnerable – consider adding a PA cover for a safer and more secure ride. 

Here is the exhaustive list of inclusions and exclusions under personal accident insurance :

Things To Remember About ₹15 Lakhs Accident Cover

In 2018, IRDAI mandated that vehicle owners obtain a minimum insurance cover of ₹15 lakhs  for owner-driver.^[2] The reason behind this mandate is a High Court ruling, where a two-wheeler policyholder lost his life after an accident. Although he had a third-party policy, the insurance company only paid ₹1 lakh to his family, which was the original cap limit for accident coverage with the basic policy. The High Court advised IRDAI to increase the personal accident cap to compensate policyholders. 

Understanding this ruling is crucial for bike owners for financial protection and legal compliance :

• Applicable for all vehicle owners – Regardless of the size and type of motor vehicle, all two-wheeler owners are liable to take ₹15 lakhs cover. (Previously, the cap was limited to ₹1 lakh.)
• Applicable for all insurance types – Whether you have third-party or comprehensive coverage, you must opt for ₹15 lakhs accident coverage. 

No change in the buying process – You can still compare multiple plans and choose the plan that suits you the best.

Key Takeaways

To conclude, personal accident coverage saves you from the unexpected financial burden caused by an accident and provides swift claim disbursal. Depending on the insurance provider, the benefits of personal accident coverage include all medical expenses and disability compensation. Don’t wait for adversity; safeguard your future today with personal accident coverage and free yourself from financial stress.

Consider platforms like PhonePe for a seamless and hassle-free insurance purchase experience.