Compulsory Personal Accident Cover (PA Cover) in Car Insurance

Posted on: January 16, 2021, by :

Damage arising from a car accident is not limited to the property or individual or a third party and the vehicle. The person driving the car is equally at risk of being seriously injured in an accident. Major accidents often result in the driver’s death or permanent disability. As a consequence, a PA for owner-drivers was set up by car insurance companies, which is mandatory. It is also given as part of the comprehensive policy and also the liability-only third-party policy.

As of 1st January 2019, the IRDAI allowed car owners to skip purchasing a PA cover if they already have one. Suppose you have 2 cars and bought a PA cover when insuring the first car, you do not have to buy it again when insuring the second car.

Coverages Under Personal Accident Cover

Here are some of the car insurance coverages you would get if you hold a PA cover.

  1. Accidental Deaths: If a policyholder suffers an accidental death, the insurance provider will pay his family the amount he has insured. In such situations, the total insurance amount will be received by the nominee as per the cover provided by the policy.
  2. Physical Disabilities: A typical PA cover would have the coverage of the following three types of physical disabilities- (i) permanent total disability (ii) permanent partial disability (iii) temporary total disability.

Reasons/Benefits Why One Must Get A Personal Accident Cover

Each owner-driver must ensure that they have at least a basic PA coverage. Reasons, why a PA cover is necessary, are

  1. This policy takes care of medical expenses and medical care. Moreover, it covers other costs as well such as funeral expenses (if the policyholder dies), repatriation charges, and ambulance fees.
  2. In the event of an accident that leads to death or makes you disabled, it will have a major effect on your earning potential. In the form of accidental compensation, a PA cover will provide your family financial benefits and ensure their financial stability. In the case of death, the insurance providers pay 100 percent compensation. The members of the family will use the amount to settle the liabilities (if any) and keep the normal lifestyle. It also gives you the peace of mind that, even in your absence, your family will be financially safe.
  3. As per the current law, you can get a lump sum payment from your insurance company which is tax-free. You can also ask for enhanced coverage by paying an additional premium.
  4. You need not take any medical test for buying a PA cover. Even, you need not worry about the paperwork when you buy a PA policy. In the application form, you need only to provide basic information, and the insurance provider will issue the policy.
  5. There is no geographical restriction with a PA cover. Regardless of the location of the accident, you can be assured of receiving the benefit; you get universal coverage.