Personal Accident Cover

What is PA Cover in Motor Insurance?

Accidents are events that cause severe damage and bodily injuries can sometimes lead to loss of life. Who wants to fall prey to such incidents which not only brings financial stress but also creates an emotional havoc?

An insurance policy, be it a motor insurance or personal accident cover, protects one from financial as well as other personal losses. A personal accident policy cover in a Motor Insurance is a facility for the owner-driver. It is a compulsory extension to be taken by the owner of the vehicle under Motor Policy, whether you’re opting for a Comprehensive Package or Third Party Liability Policy.

The compulsory PA policy under motor insurance is issued in the name of the owner of the vehicle. He/She is entitled to the cover only if they possess a valid driving license. If you don't have a PA cover, you can opt for the same when you buy your car insurance or two-wheeler insurance.

What is Covered in Personal Accident Cover?

A PA cover under the motor insurance policy will pay for the compensation in case of bodily injuries, death or any permanent disability resulting due to an accident. The limit of the coverage is defined as Rs.15 lakhs by IRDAI. Here is the percentage of compensation paid in different circumstances:

Favoring Accidental Death - The insurance company will pay the entire Sum Insured to the nominee in case of sudden death due to a road accident.

Favoring Permanent Total Disability - In the state of permanent total disability, the compensation will be :

Coverage	%age of Compensation
Death	100%
Loss of 2 limbs or 2 eyes or 1 limb or 1 eye	100%
Loss of sight of 1 eye or 1 limb	50%
Permanent Total Disability	100%

Why is a Personal Accident Cover Important?

When humans sense danger, they always tend to prepare an action plan which will save them. Getting on the road with the bad traffic and hurrying vehicles, for almost all parts of the day, makes driving stressful. But those moments are common when even for no fault of yours, you get banged and sustain severe damages.

Imagine a speeding truck which hits on the side of a car hurting the driver. The intensity of the damage could be huge, as it could have even caused loss of life! Many such unpredictable events can lead to loss of life or permanent disabilities. And when we know that the probability of such occurrences cannot be denied, buying a PA cover becomes a necessity.

Under Motor Insurance, a Personal Accident is important as the cover gives the owner-driver maximum financial aid in all cases. The policy seems vital especially when the earning capacity of the person is affected.

Is it mandatory to have a Personal Accident cover?

Under the Motor Vehicle Act 1988, only Third-Party Liability cover was mandatory. The type of the claims reported, for bodily injury or property damage, were higher. Other than the TP claims, the cases of owner-drivers needed attention. Later, it was made mandatory for motor owners to buy a personal accident cover as well. The intent behind the cover was to benefit the owner for any losses and injuries that could occur due to an accident.

But with effect from January 2019, this feature of buying a PA cover compulsorily under a motor insurance policy has slightly changed. The change implies these two conditions:

a) It refers that if the owner of the vehicle has a stand-alone accident policy with Sum Insured of Rs.15 lacs, then she/he can be given a waiver for this cover.

b) The amendment under this cover also implies that if the owner-driver of a vehicle has a PA policy for his existing car or a two-wheeler, then it is not important for him to buy it for a new vehicle.

The PA cover is mandatory and clubbed with a Comprehensive Package Policy or Third Party Liability Policy.

Benefits of Personal Accident Cover?

Life is unpredictable and so are accidents. Hence, we need a Personal Accident Policy. Other than a standalone cover, an individual can buy PA protection under Motor Policy also. It comes with some benefits that includes:

How to claim?

The claim under the Personal Accident Policy-a part of Motor Insurance can be claimed by the owner-driver or nominee of the respective four-wheeler or two-wheeler. The policy’s aim it that the nominee or the surviving owner fetches the maximum benefits (as mentioned in the policy).

To retrieve benefits of the PA cover during an accident where the owner-driver has been injured, one needs to file a claim. Following are the instructions to make one:

1. Intimate the insurer about the incidence and resulting loss.

2. Ask for an FIR followed by FR. It will be one of the most important documents needed for processing the claim. If possible, arrange for the witnesses who can approve of the occurrence of a claim.

3. Complete the formalities with the insurer that includes filling the claim form, provide photographs of the car accident (if applicable). In case of Digit, all these processes can be easily completed on our app, online.

4. Submit all the documents online and wait for the insurers to verify the details.

In the eventuality of death of the owner-driver, the nominee will file the claim. She/he will be awarded the claim amount as per the policy.

FAQs about Personal Accident Cover in Motor Insurance

✓ Is PA cover mandatory for Two-Wheeler?

Yes, a Personal Accident cover is mandatory for all two-wheelers. The same can be bought along with your two-wheeler insurance policy.

✓ I have two two-wheelers in my name, do I need to buy 2 PA covers?

No, one must only have one personal accident cover. The PA cover is associated with you as an individual, and not to your vehicle.

✓ I have a car and bike in my name, do I need to buy PA cover separately for both the vehicles?

No, one PA cover is sufficient as your PA cover isn’t associated to your vehicle but to you as a person.

✓ Is PA cover only applicable for the owner-driver?

Yes, a PA cover is compulsory only for the owner-driver.