Is Personal Accident Cover Mandatory With Car Insurance?

Is Personal Accident Cover Mandatory With Car Insurance?

As many car owners may be aware, the Motor Vehicles Act of 1988 makes it mandatory to have a third-party insurance policy to be able to drive on Indian roads. Besides this, there is another mandatory insurance cover – the personal accident cover. The India Motor Tariff of 2002 made the PA cover legally necessary to be purchased with any motor insurance plan. In early 2019, however, there were some changes in the mandate. As a result, many people have several questions and doubts regarding the mandatory nature of the PA cover. In this article, we tell you what you need to know on this subject. Let’s get on to it. 

The PA cover is mandatory only for first-time car insurance buyers 

Earlier, before the 2019 amendment, one had to buy a personal accident cover every time they purchased a new car, and thus a new car insurance policy. However, this led to quite a few problems. Primarily, the policyholder would have to pay multiple premiums for all their PA covers but the coverage remained the same. Keeping this in mind, a decision was made in 2019 by the concerned authorities. A person who already had a personal accident cover with their previous car insurance policy would not have to buy a new one if they purchased a new car. 

This waiver is valid even if the previous PA cover was purchased with a two-wheeler policy. 

The PA cover can be waived off for those who already have one 

The personal accident cover also comes under the category of health insurance to a certain extent. Hence, many people purchase it even if they do not have a vehicle as accidents can happen to anyone, anytime. So, financial protection is necessary. If someone has already purchased a stand-alone PA policy with their health insurance provider, then they do not have to buy it a second time when they get a car, and thus a new car insurance policy. 

However, for this waiver to be valid, it is important that the PA cover of the person has a minimum sum insured of Rs 15 lakh. If the sum insured is below that, they may consider buying a new cover or renewing the old one with a higher sum insured. 

If you do not meet the two conditions, then you have to buy a PA cover with your new car insurance policy. In that case, choose an insurer carefully. 

Some points to keep in mind when choosing a car insurance policy and PA cover 

  • Choose a car insurance company with a high claim settlement ratio. Your claims have a higher chance of getting approved with such an insurer. 
  • Check the number of network hospitals as well as network garages so that you and your car can receive good-quality, cashless services at a large number of places when required. 
  • Check if the insurer has 24/7 claim assistance. You may never know when an unfortunate event damages your car or harms you severely. Having access to your insurance 24/7 can be helpful in such scenarios. 

We hope that this information will prove useful. Keep your car insurance plan renewed always for constant protection against unforeseen accidents.