Compulsory Personal Accident (CPA)

Compulsory Personal Accident (CPA) cover is a crucial part of car insurance that’s often not fully understood. It’s a mandatory cover for the owner-driver under the Motor Vehicles Act. Whether you have third-party car insurance or a comprehensive car insurance policy, this cover is automatically included, offering you protection in case of an accident.

For example, imagine you're driving and unfortunately get into an accident. The CPA cover for owner-driver will provide financial support, covering up to ₹15 lakhs for medical treatment, compensation for injuries, or even death. This cover ensures that in the unfortunate event of an accident, you’re not left to bear the heavy medical costs alone.

At Tata AIG, we’ve made sure that this essential cover is included in all our car insurance policies, so you're always protected. Additionally, we offer benefits such as No Claim Bonus Protection to provide you with even more value.

Accidents can happen when least expected, leaving you with both vehicle damage and the risk of personal injury. While both comprehensive car insurance and third-party car insurance cover damages to others, they don't necessarily protect the owner-driver. This is where Compulsory Personal Accident (CPA) cover becomes essential.

Here’s why CPA cover is important:

• Protects You as the Owner-Driver: While third-party insurance only covers others, CPA cover ensures you’re financially protected in case of injuries or even death while driving your car.

• Not Always Necessary with Standalone PA: If you already have a separate personal accident (PA) policy for the owner-driver, you don’t need CPA cover as it offers similar protection.

• Coverage for Serious Injuries: CPA cover protects against severe injuries, like permanent total disability or death. However, it doesn’t cover every possible situation, like temporary injuries or vehicle repairs.

At Tata AIG, we automatically include CPA cover in all our comprehensive car insurance policies, ensuring you're fully protected in the event of an accident.

As per IRDAI regulations, personal accident coverage within a car insurance policy offers financial compensation of up to ₹15 lakh in the occurrence of permanent disability, bodily harm, or death of the insured owner-driver.

Here’s a breakdown of the compensation disbursed by the insurance company under different circumstances:

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

2. Permanent Disability: In such instances, the compensation 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.

The compulsory personal accident (CPA) cover is a crucial component of car insurance, offering essential protection to the owner-driver in the event of an accident. Below are the key features that make this cover a valuable addition to any car insurance policy:

• Coverage for Owner-Driver: The compulsory owner-driver PA cover ensures financial protection for the car's owner in case of accidental death or permanent disability.

• Minimum Coverage Amount: The compulsory personal accident cover for owner driver provides a fixed sum insured of ₹15 lakh, offering substantial financial security.

• Mandatory by Law: The owner-driver personal accident cover is compulsory under the Motor Vehicles Act and IRDAI guidelines, making it a legal requirement for all car insurance policies.

• No Medical Exam Required: Obtaining the compulsory PA cover doesn’t require any medical check-ups, making it easy to access for every owner-driver.

• Low Premium: The compulsory PA cover premium is affordable, providing significant coverage for a low cost.

• Flexibility in Coverage Period: The period of compulsory PA cover typically aligns with the car insurance policy duration, often one year, but can be extended to up to five years.

• Protection Across Multiple Vehicles: If the owner-driver already has a standalone accident policy, the coverage applies across all vehicles owned by them, avoiding duplicate coverage.

In India, the compulsory personal accident cover is mandatory for every car owner-driver. According to IRDAI guidelines and the Motor Vehicles Act, every car insurance policy, whether third-party or comprehensive, must include this coverage to protect the driver in the event of accidental death or permanent disability. The minimum sum insured is ₹15 lakh, ensuring financial security for the policyholder or their family.

If the owner-driver already has a standalone personal accident policy with ₹15 lakh coverage, they don’t need to buy the compulsory PA cover for owner owner-driver again for each new vehicle. This policy extends to all vehicles owned by the driver.

The period of compulsory PA cover generally matches the car insurance policy, typically one year, but it can extend up to five years. The best part is that the compulsory PA cover premium is low, making it an affordable way to ensure significant protection.

In short, owner-driver personal accident cover is compulsory, and it provides great value for the protection it offers.

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.

Yes, personal accident cover is a must for car insurance.

When the Motor Vehicles Act was introduced in 1988, only third-party car insurance was required.
However, as car ownership grew, so did the number of accidents and injuries. To protect drivers and their families, personal accident cover became mandatory.

Previously, owner-drivers were not covered for injuries, but this gap was filled by making personal accident coverage a requirement.

In 2019, the Motor Vehicles Amendment Act made two important updates:

1. It adjusted the requirements for personal accident cover.

2. It introduced new provisions for better coverage and benefits.

If an owner-driver already has accident insurance up to ₹15 lakh, they don’t need to buy extra personal accident cover with their car insurance. Similarly, if they have a standalone personal accident policy (like AUTO SECURE COMPULSORY PERSONAL ACCIDENT), it will cover all vehicles they own, so no need to buy it again for a new car.

Filing a claim for your Compulsory Personal Accident (CPA) cover doesn’t have to be complicated. Here’s a simple guide to help you:

1.Report the Incident: As soon as possible, inform your insurer about the accident. This lets them know what happened and helps kickstart the claim process.

2.Obtain the Necessary Documents: You’ll need an FIR (First Information Report) and the Final Report from the authorities. These documents are key for your claim. If possible, gather statements from any witnesses as well.

3.Follow the Insurer’s Instructions: Read through your insurer’s guidelines carefully. Complete the claims form and provide supporting evidence, such as photos of the accident scene and medical records.

4.Submit Your Documents: Once everything is in order, submit your claim documents online to your insurer. After this, wait for them to process and review your claim.

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

CPA claim application form

Valid driving licence

Medical reports

First Information Report (FIR)

Hospital bills

Hospital investigation report

Car’s registration certificate

KYC forms and documents

Medicine bills

Hospital discharge summary

Income proof (pay slips or salary slips)

Cancelled cheque (CTS format)

Death Certificate (if applicable)

Post-mortem report (if applicable)

Disability Proof (if applicable)

Accidents can occur at any time, and having Compulsory Personal Accident (CPA) cover ensures you're financially protected in case of injury or death. Along with CPA, a comprehensive car insurance policy, a policy covers theft, vehicle damage, and third-party liabilities.

When choosing a car insurance plan, factors such as premium cost, coverage, and additional benefits —like zero depreciation car insurance- should be considered. Tata AIG offers flexible plans, including personal accident cover, consumables cover, and access to a vast network of garages across the country.

Use our vehicle insurance calculator to estimate premiums and select the best coverage for your needs.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.