Passenger Cover in Car Insurance

When you’re behind the wheel, you’re not just responsible for your car, but also for the people sitting beside or behind you. That’s where passenger cover in car insurance steps in. It’s an optional add-on that provides personal accident compensation to unnamed passengers in case of injury or death due to a road accident. It doesn’t pay for hospital bills, but offers a fixed amount to support affected families financially.

Let’s say you’re driving your relatives to a family function and an unfortunate collision occurs. While your own car insurance may protect you, what about them? That’s exactly the gap this cover fills, giving you peace of mind when you have loved ones riding with you.

With Tata AIG’s comprehensive policies, you can include passenger personal accident cover that protects up to a certain number of occupants, as per your vehicle type. It ensures that even unnamed, non-fare-paying passengers (like friends or family) are financially safeguarded in the worst-case scenario. You also have the flexibility to choose the insured amount depending on your needs.

This way, your car insurance doesn’t just protect the driver or the vehicle, it protects the people who matter most.

Passenger cover in car insurance isn’t mandatory under Indian law. As per the Motor Vehicles Act, 1988, every car insurance policy must include a Personal Accident (PA) Cover of ₹15 lakh for the owner-driver. This is part of regulatory compliance and is included in motor insurance policies offered by TATA AIG. However, this essential cover doesn’t extend to other passengers when you have only a third-party car insurance policy.

To bridge this gap, you can opt for a passenger cover add-on with your policy. This provides fixed financial compensation in case a co-passenger suffers accidental injury, permanent disability, or death while travelling in your car. Although it doesn’t cover medical treatment like a health insurance plan, it adds a layer of financial protection. For those who regularly travel with family, friends, or colleagues, this addition can make your comprehensive car insurance policy more complete and practical.

Including passenger cover in car insurance enhances your policy by offering protection beyond the driver. Here are some of the key advantages:

• Passenger cover in car insurance provides financial protection to passengers in case of accidental injuries while travelling in the insured vehicle.
• The cover ensures co-passengers receive a fixed amount, supporting them or their families during a crisis.
• In the event of permanent disability or death, the cover offers compensation to the affected individual or their family.
• Adding passenger cover enhances the comprehensiveness of your car insurance policy by including non-driver occupants.
  When paired with a comprehensive car insurance policy, it offers well-rounded protection for both the driver and the passengers.
• This cover is especially useful for those who frequently travel with family, friends, or employees.

Opting for passenger cover in car insurance gives you and your co-passengers added peace of mind on every ride. Here are its key benefits:

• Offers a fixed sum if a passenger suffers accidental death or permanent disability.

• Helps families with immediate financial support when it matters most.

• Specifically covers non-fare-paying occupants in your private car.

• Strengthens your comprehensive car insurance by protecting more than just the vehicle.

• Ideal for those who often travel with family, friends, or colleagues.

This allows your journey to be well-protected from multiple angles.

While passenger cover in car insurance adds extra protection, there are certain things it doesn’t cover. It's good to know these before you buy or renew your policy:

• If the vehicle is driven without a valid licence.

• Accidents caused by alcohol or drug use by the driver.

• Self-harm or suicide attempts by the passenger.

• If the car is used for purposes not covered in the policy, such as commercial driving without approval.

• Injuries or losses during war, riots, or nuclear risks.

• Use of the car for unauthorised activities like racing or testing.

These exclusions apply even under a comprehensive car insurance plan, so make sure to go through the terms, whether you're buying a new policy or going for car insurance renewal online.

The following table outlines the standard compensation offered under passenger cover in car insurance, depending on the type of injury:

Type of Injury or Loss	Compensation (%)
Accidental death	100%
Loss of two limbs, both eyes, or one limb and one eye	100%
Loss of one limb or one eye	50%
Permanent total disability from injuries not listed above	100%

This coverage ensures meaningful support for passengers facing serious injuries.

The passenger cover in car insurance is generally affordable. Its cost mainly depends on your vehicle’s seating capacity and the compensation coverage you select for each passenger. The car insurance premium may increase if you choose higher limits or want to include all the passenger seats. Since pricing differs between insurers, the final premium will depend on the specific car insurance policy you pick. Also, remember that passenger cover doesn’t come by default. You’ll need to add it separately to your comprehensive car insurance, as it’s not the same as the personal accident cover for owner-drivers.

If a passenger in your car is injured during an accident and you’ve opted for passenger cover in car insurance, follow these steps to file a claim:

• Inform Tata AIG

Report the accident immediately via Tata AIG’s app, website, WhatsApp, or call 022-6489-8282 (charges apply). Provide details like time, location, and injury specifics.

• File an FIR (If Needed)

If the accident involves serious injury or third-party damage, file an FIR and keep a copy ready.

• Gather Proof

Click photos of the accident site and injuries. If possible, collect witness details.

• Submit Documents

You’ll need your policy copy, RC, DL, FIR (if applicable), medical bills, and a completed passenger claim form.

• Claim Processing

Tata AIG will assess the claim. Depending on your personal accident cover, the amount will be reimbursed or paid directly.

Note: This cover must be added to your policy; it's not automatically included.

Read Also: How to Renew Car Registration After 15 Years in India

Passenger cover in car insurance is a practical add-on that offers fixed compensation in the event that your authorised passengers are injured or killed in an accident. While not mandatory, it’s a thoughtful layer of protection for vehicle owners who often travel with others. Since it’s not included by default in your comprehensive policy, you must opt for it separately. Adding this cover shows a proactive approach to road safety and financial responsibility.