Personal Accident Cover in Car Insurance

The PA cover is a very important component of motor insurance that protects you and your family, not just your vehicle. While regular motor insurance covers damage to your car or bike, PA cover focuses on what matters most: the safety and financial well-being of the person behind the wheel.

Under motor insurance, PA Cover provides a lump-sum payout in case of accidental death or permanent disability. This amount helps manage medical needs, income loss, or long-term expenses. If the policyholder dies due to an accident, the nominee receives the compensation.

PA cover is included with motor insurance policies, and in India, IRDAI has made it mandatory for owner-drivers to have a minimum standard cover.

Here are some key aspects of the personal injury cover car insurance you need to keep in mind:

• In the unfortunate event of accidental death, the insurer pays the full insured amount to your nominee. This helps your family manage expenses and stay financially secure.

• If you meet with a serious accident that leads to permanent disability or death, personal accident cover steps in with financial support.

• For a more comprehensive protection, owner driver personal accident cover was made mandatory with motor insurance policies.

• If the accident results in permanent disability, the payout is based on the extent of the injury.

• Similarly, if you already hold a valid PA cover for one vehicle, you do not need to purchase a fresh one when buying another car or two-wheeler.

• If you already have a separate personal accident policy with a sum insured of ₹15 lakh, you can opt not to buy it again. This rule change was made in January 2019 to prevent unnecessary duplication.

Also Read: Add-on Covers in Car Insurance

Inclusions in the Car Insurance with Personal Accident Cover

• The protection applies not just when you are driving, but also when you are getting into or out of the vehicle, or when you are travelling in it as a co-driver.

• You are covered when you are driving your own insured vehicle.

• The coverage applies only when the accident is directly linked to the insured vehicle.

• The policy steps in if an accident causes serious injury or death, provided the accident is sudden, unexpected, and clearly accidental.

• In case of death, the claim amount is paid to the nominee or legal heir directly. This helps the family of the policyholder during a difficult time.

• To be eligible for a claim, you must be the registered owner of the vehicle or your name must appear on the policy. Also, you must hold a valid driving licence at the time of the accident

• The injury must lead to death or permanent disability within a certain period after the accident.

Exclusions from the Car Insurance with Personal Accident Cover

• Claims will not be accepted if the vehicle was used in a way that breaks policy rules, or driven by someone who is not authorised under the policy.

• Accidents that happen outside India are not included in this.

• If you face financial losses due to war, riots, civil unrest, or military action, these are excluded.

• The policy does not cover injuries or death caused by intentional self-harm or suicide attempts, driving under the influence of alcohol or drugs, or existing physical conditions or medical issues.

• This cover also does not apply to damage to property, indirect or consequential losses, or liabilities arising from contracts.

• In cases of accidents involving nuclear risks and radiation, these are not covered.

Also Read: Risks Covered Under Comprehensive Car Insurance

Step 1: As soon as an accident occurs, contact your insurance company and inform them of what happened. If you intimate them early, it will help you avoid delays.

Step 2: Register an FIR and get the Final Report (FR). These documents play a key role in confirming the accident details. If there were any witnesses, their details can also be helpful.

Step 3: Fill out the claim form with correct and clear information. You can do this online through the website or mobile app.

Step 4: Share all required documents, including medical records, accident photos (if available), your driving licence, ID proof, and policy details.

Step 5: The insurer will review your documents and may contact you if they need any clarification or additional paperwork.

Step 6: Once everything is verified, the claim is approved, and the payment is released. Upon the insured's death, the nominee or legal heir completes the process and receives the benefit under the policy.

Financial Support in Case of Death: If an accident turns fatal, PA cover provides a lump-sum payout to your family or nominee. This amount covers immediate expenses, ongoing household needs, or financial commitments.

Support for Permanent Total Disability: When an accident leads to life-changing injuries such as loss of a limb or eyesight, PA cover offers full compensation. This helps you adapt to your new circumstances without the added pressure of financial worries.

Help for Partial Disabilities: Even if the injury results in partial disability, the policy provides proportionate financial support. This can help manage reduced income, medical needs, or changes to daily life.

Income Support During Recovery: If you are unable to work due to accident-related injuries, PA cover provides financial relief to help you manage everyday expenses while you recover.

Flexible Protection: PA covers allow you to increase coverage or add optional benefits, so you can tailor the policy to suit your personal and family needs.

Vehicle owners previously had to buy a new accident cover for each vehicle they purchased. But the Insurance Regulatory and Development Authority of India, or IRDAI, has now unbundled the car personal accident cover from car insurance.

This new Act, effective January 2019, has replaced the former rule requiring the purchase of accident cover with every new vehicle. Personal accident insurance is, therefore, now a one-time investment with options for lifetime renewal. This helps reduce the financial burden on vehicle owners.

The TATA AIG PA cover add-on is an easy way to add extra protection for the people in your car, not just the vehicle itself. While the compulsory PA cover only covers the owner-driver, this add-on lets you extend that safety net to others, such as a paid driver or passengers.

If an accident leads to serious injury, permanent disability, or death, the add-on provides financial support to help ease the impact. The payout is fixed and depends on the severity of the injury, rather than on medical bills.

Now that you know what is a personal accident cover add-on, let us understand how this add-on works:

Step 1: When you buy or renew your motor insurance, you can add the PA cover add-on by paying an extra premium.

Step 2: Once you have added it, the protection starts right away for the people covered under the policy, such as a paid driver or passengers.

Step 3: If the insured vehicle is involved in an accident that causes serious injury, permanent disability, or death to a covered person, the PA cover add-on steps in.

Step 4: The insured or nominee simply needs to notify the insurance company and share the necessary documents.

Step 5: The insurer reviews the details to ensure the accident is covered under the policy.

Step 6: After approval, the compensation is paid to the injured person or the nominee, helping ease the financial burden during a tough time.

The PA cover is not one-size-fits-all. Motor insurance offers different types of PA covers, each protecting a specific person connected to the vehicle. Here are the different types of personal accident coverage:

Accident Cover under Third-Party Insurance

This cover comes with third-party insurance and is meant for other people involved in an accident, not the vehicle owner. If a third party loses their life in an accident caused by the insured vehicle, the compensation amount is decided by the court and has no fixed limit. For injuries or disability, the compensation is capped as per IRDAI guidelines.

Car Insurance Personal Accident for the Vehicle Owner

This cover is designed for you, the owner-driver. It protects you if you are injured or killed in an accident involving your vehicle. You can buy it along with third-party insurance, and it usually comes included when you opt for a comprehensive policy.

Personal Accident Cover for a Paid Driver

If you employ a driver, this optional cover also helps protect them. By paying a small extra premium, you ensure that your paid driver is financially supported if they suffer injuries or death while driving your insured vehicle.

Personal Accident Cover for Unnamed Passengers

This optional cover looks after friends, family, or anyone else travelling with you. It provides financial support to unnamed passengers if they are injured in an accident involving the insured vehicle.

Yes, personal accident cover is mandatory for all car owners in India. As per IRDAI guidelines, you must have this cover whether you choose a third-party policy or a comprehensive car insurance plan. Driving without a valid PA Cover can put you at risk of legal issues.

The reason behind this rule is simple, to make sure every car owner has basic financial protection in case of serious accidents. As per the India Motor Tariff 2002, PA Cover is included with both comprehensive and third-party insurance policies for four-wheelers, so you are never left without at least minimum personal protection while on the road.

However, keep in mind, you do not need a separate PA cover for every vehicle you own. To avoid duplicate and costly coverage, IRDAI amended the rules in January 2019, allowing owners of multiple vehicles to opt for one standalone PA policy instead.

If you have a standalone PA Cover with a minimum coverage of ₹15 lakh, it applies across all your vehicles. In such cases, you can avail a waiver for the compulsory PA Cover that comes bundled with individual motor insurance policies.

Personal accident cover car insurance means the maximum protection available, which is ₹15 lakh. If an accident results in serious injury or death, compensation is paid based on the severity of the injury or death, as defined in the policy.

Only one benefit is paid for a single accident, even if multiple injuries occur. The cover applies when the owner-driver is involved in an accident directly linked to the insured vehicle. The accident must be sudden and caused by visible, external, and accidental reasons, and the resulting injury or death must occur within six months of the accident.

Here is how the compensation works:

The premium you pay for personal accident cover is based on your occupation and age. Some of the insurance providers may even assess your medical history before quoting a premium.

Your premium estimate is also subject to your coverage selection. TATA AIG car insurance offers various coverage plans for cars. As the benefits and principal sum vary across plans, so does the policy's purchase price. The plan you opt for depends on your requirements and budget. But your decision will eventually determine the premium.

Compensation under the personal accident policy is provided directly to the insured individual or their legal representatives, subject to certain eligibility criteria. To qualify for a Personal Accident claim, the owner-driver must meet the following conditions:

Registered Owner of the Vehicle: The individual claiming compensation must be the vehicle's registered owner and insured under the policy.

Named Insured in the Policy: The person claiming compensation must be explicitly named as the insured in the motor insurance policy.

Valid Driving Licence: The owner-driver must hold a valid driving licence in accordance with Rule 3 of the Central Motor Vehicles Rules. This ensures that the driver is legally authorised to operate the vehicle at the time of the accident.

These conditions ensure that the policy benefits are available only to those who meet the necessary legal and ownership requirements.

• Properly filled out the CPA claim application form

• The owner-driver’s valid driving licence

• Medical reports of the policyholder

• First Information Report copy

• Hospital bills

• Hospital investigation report

• Car’s registration certificate

• KYC forms and KYC documents

• Medicine bills

• Hospital discharge summary

• Income proof, such as pay slips or salary slips

• An original cancelled cheque in CTS format (2010)

• Death Certificate (if applicable) of the owner-driver

• Post-mortem report (if applicable)

• Disability Proof (if applicable) from the doctor

Step 1: Decide if you want only the compulsory PA cover bundled with your car insurance or an additional optional/add-on PA cover for better protection.

While purchasing or renewing your car insurance with TATA AIG, the mandatory PA cover for the owner-driver is automatically included, as per IRDAI guidelines.

Step 2: Provide basic personal information and valid driving licence details, which are required to activate the PA cover.

Step 3: If you want higher coverage or protection for co-passengers, paid drivers, or unnamed passengers, select the optional/add-on PA cover during the purchase journey.

Step 4: Check the coverage details, sum insured, and premium, then complete the payment securely online.

Step 5: Once the payment is successful, your PA coverage details are included in the policy document and emailed to you instantly.

At the end of the day, personal accident cover in car insurance is not just compulsory, it is sensible. Accidents cannot always be avoided, but financial stress can be. A valid PA policy ensures you stay protected, legally compliant, and financially secure, even if you manage multiple vehicles.

When combined with a strong car insurance policy, PA Cover becomes even more effective. TATA AIG car insurance offers comprehensive protection that goes beyond the basics, covering damage, liability, and personal risks. With flexible car insurance options, you can choose the right value for your car, while the convenience of buying car insurance online makes the process quick.

The insurance is backed by high IDV car insurance, fast claim settlements, a wide network of garages, and trusted service. TATA AIG helps you drive seamlessly, knowing both you and your vehicle are well protected every time you drive.