What is CPA Cover in Car Insurance?

CPA full form in insurance is Compulsory Personal Accident coverage and it is a mandatory insurance safeguard for the vehicle's owner-driver. This cover is included in a car insurance policy. Regardless of whether you opt for third-party liability or a comprehensive car insurance plan, this essential protection is provided.

Moreover, this coverage can be added to existing insurance for four-wheelers and is issued to the vehicle's owner-driver. It provides up to ₹15 lakhs in financial compensation from the insurer for bodily harm or injuries sustained in an accident. However, note that a valid driving licence is required to claim compensation under this policy.

Road conditions are inherently unpredictable. Due to this, road accidents can happen instantaneously without any warning. These unexpected incidents cause significant vehicle damage and result in physical harm to vehicle occupants.

Both comprehensive and third-party car insurance cover injuries and damage to others but the third-party car insurance plan does not protect the vehicle owner-driver. This means, in the absence of the right insurance plan, the owner-driver could face financial problems if an accident occurs.

The inevitability and unpredictability of such life-threatening incidents require thorough preparation and complete protection. Consequently, acquiring personal accident insurance becomes indispensable. The CPA cover in a car insurance policy acts as a crucial financial lifeline for the owner-driver in the terrible and unfortunate event of a road accident.

Per IRDAI regulations, personal accident coverage within a car insurance policy offers financial compensation of a maximum of ₹15 lakhs in the occurrence of permanent disability, bodily harm or death of the insured owner-driver.

Let us examine in detail the percentage of compensation disbursed by the insurance company under different circumstances:

Accidental Death: The insurance company will pay the total sum insured to the deceased person’s nominated beneficiary if they are involved in an accident and lose their life.

Permanent Disability: In such instances, the compensation disbursed is as follows:

There are specific exclusions that limit the CPA coverage from providing financial compensation. These include:

Self-Harm or Suicide: The Personal Accident Cover does not apply if the death or injury results from intentional self-harm or suicide. This means, if someone causes harm to themselves on purpose or ends their life, the insurance provider will not provide compensation.

Drunk or Drugged Driving: The CPA cover is void if the accident that causes death or injury occurs while driving under the influence of toxic substances like alcohol or drugs. This implies that if someone is intoxicated or impaired and an accident occurs, the insurance will not pay out.

Outside Coverage Area: If the death or injury happens outside the specific geographical area listed in the policy, the cover does not apply. This means the insurance will not provide compensation if an accident occurs in a location not covered by the policy.

CPA coverage in car insurance serves as a financial safeguard against unforeseen mishaps. Similar to other insurance policies, it provides financial protection against unfortunate circumstances. Consequently, owning a CPA cover benefits frequent and occasional drivers alike.

To summarise, here are the key advantages of a CPA cover:

A CPA Cover is Easy and Quick to Obtain

Policyholders can obtain coverage with minimal paperwork and without taking a medical exam. This means, getting insurance is quick and easy, as it does not require extensive documentation or health checks, making it accessible to more people.

A CPA Cover Provides Financial Security for Family

This cover puts forward a financial safety net for the policyholder's family, ensuring they receive financial support if the policyholder becomes permanently disabled or dies due to an accident.

Moreover, this coverage helps the family handle any financial burdens from the accident, such as medical bills or other expenses. Securing the family's financial well-being during a challenging time offers peace of mind.

A CPA Cover Provides Universal Protection

Another major benefit is that the CPA cover offers universal protection. It provides compensation no matter who caused the accident. This is helpful when figuring out who is at fault, as it can be difficult and may take time. The process to file a claim is also straightforward, making getting the support you need easier.

**A CPA Cover is Cost-Effective

The CPA cover is very cost-effective compared to the amount of protection it provides. You pay a small CPA premium, which gives you a large coverage amount. This makes it a great value to add to your car insurance policy, offering significant benefits for a relatively low cost.

**A CPA Cover Has a Simple Claim Process

The Compulsory Personal Accident cover has a straightforward claim process, which is a big plus. Unlike other insurance claims that can be complicated, claiming under the CPA cover is simple and easy. This means that the beneficiaries can access the benefits quickly and without unnecessary trouble, making the process much smoother and less stressful.

**A CPA Cover Offers Customisation and Renewability

Compulsory Personal Accident covers can be tailored to fit individual needs. You can adjust the coverage amount or add specific features based on what’s important to you. Furthermore, these policies offer lifelong renewability. This means you can keep your coverage active as long as you renew it, ensuring long-term protection and flexibility.

Initially, the 1988 Motor Vehicles Act only required third-party car insurance. But as the number of car owners increased in India, there have been more claims for bodily injuries. To address this, personal accident coverage has become increasingly important to ensure drivers and their families are protected from financial strain in case of an accident.

Previously, the only gaps were injuries suffered by owner-drivers that were not covered. To fix this, personal accident coverage was made mandatory with car insurance policies. This ensures owner-drivers also receive financial protection in case of an accident, covering the gaps left by basic insurance.

The 2019 Motor Vehicles Amendment Act changed mandatory personal accident cover rules. There are two key updates: the requirement for personal accident coverage is adjusted, and new provisions are introduced to improve coverage and benefits. These changes aim to address current needs and situations better.

• Suppose the owner-driver already has a separate accident insurance plan with coverage up to ₹15 lakh; in that case, they do not need to buy the additional personal accident cover with their car insurance. This avoids duplication of coverage and simplifies the insurance process.

• If the owner-driver already has personal accident cover with their current vehicle, they do not need to buy it again for a new vehicle. Their existing coverage will apply to the new car, avoiding the need for additional insurance.

A claim under the CPA cover in car insurance can be initiated by either the vehicle owner/driver or the designated nominee.

To file a claim, specific procedures must be adhered to:

Step 1: Promptly inform the insurance company about the accident and the resulting losses incurred.

Step 2: Obtain a First Information Report (FIR) from the authorities, followed by a Final Report (FR). These papers serve as crucial evidence to support the claim. If possible, collect statements from witnesses who can confirm what happened.

Step 3: Complete the necessary claim formalities with the insurer, including accurately completing claim forms and submitting relevant photographs capturing the accident scene.

Step 4: Submit all required documentation online and await verification from the insurance company.

In the unfortunate event of the owner-driver's demise, the designated nominee becomes responsible for initiating the claim process. Upon successful claim settlement, the nominee will receive the compensation outlined in the policy terms.

Documents Needed for Claiming CPA Cover in Car Insurance

The documents needed to file a claim against the CPA cover may vary, but generally include:**

• Policyholder's medical records

• Copy of the First Information Report

• Hospital bills

• Original cancelled cheque in CTS (Cheque Truncation System) 2010 format

• KYC documents and KYC forms

• Proof of income like salary slips or pay slips

• Disability proof (if applicable)

• Death certificate (if applicable)

While we all hope for the best on the road, reality dictates otherwise. Unexpected events can occur, and having a Compulsory Personal Accident (CPA) cover is like having a financial buffer. It provides the much-needed financial support for you or your family in case of unforeseen mishaps.

Similarly, a car insurance policy provides a broader safety net. It covers unexpected events like accidents, theft, damage to the insured vehicle due to natural and manmade calamities and damage to third party persons, vehicle and property.

This comprehensive protection ensures that you have financial support when you need it most, and it also allows for flexibility in transferring coverage when necessary. Thus, securing the right car insurance policy is crucial to safeguard your finances effectively.

When selecting a car insurance plan, consider several factors like the premium cost, coverage extent, additional benefits offered, ease of policy purchase and renewals and claim process.

For instance, TATA AIG provides a range of car insurance policies with extensive and customisable coverage options and added benefits that cater to diverse needs.

Our plans include personal accident cover, protection against third-party liabilities and consumables cover in car insurance, making it easier to tailor your insurance to fit your requirements. Moreover, with our extensive network of garages across the country, repair and replacement for your car pats is always within easy access.

Remember, the car insurance renewal price or purchase cost can fluctuate based on the chosen plan and any supplementary add-ons. To estimate potential premium costs, you can utilise our car insurance premium calculator for informed decision-making.