Personal Accident Cover in Car Insurance - Types, Compensation & Claim Process

Personal Accident Cover in car insurance is a critical feature that provides financial protection in case of injuries, disabilities or death caused by an accident involving the insured vehicle. This coverage ensures that you or your family are not burdened with unexpected medical expenses or financial hardships during such unfortunate events.

It extends to cover both the owner-driver and, in some cases, passengers, depending on the policy terms. If the policyholder suffers permanent or temporary disabilities or, in the worst-case scenario, loses their life due to a road accident, the insurance company offers compensation as per the policy's coverage limits.

This cover is mandatory in motor insurance policies, emphasising its importance in safeguarding lives. With a personal accident cover, you can focus on recovery or ensure your family's financial stability without worrying about the costs associated with accidents.

Also Read: How to Choose the Right Car Insurance for Your Four-Wheeler

Since January 2019, there have been some changes regarding the purchase of Personal Accident (PA) cover as part of a motor insurance policy. These changes include:

• Vehicle owners who already have a separate accident policy with a sum insured of ₹15 lakhs can request an exemption from purchasing the PA cover within their motor insurance policy.

• Furthermore, if the owner-driver already holds a PA policy for their current car or two-wheeler, they are not required to buy a new PA cover when acquiring a new vehicle.

These amendments offer more flexibility for policyholders, ensuring they are not paying for redundant coverage.

TATA AIG's Personal Accident Cover provides comprehensive protection in the event of an accident, offering the following benefits:

-Permanent Total Disability: In the unfortunate event of total disability, the insured is entitled to receive the full sum insured. This amount is paid to the policyholder in case of a life-altering injury.

-Accidental Death: If the insured individual passes away due to an accident, the entire insured amount is paid to the nominated beneficiary.

In such cases, TATA AIG ensures compensation is provided based on a specific scale for death or bodily injuries sustained by the owner-driver of the vehicle, offering financial security during difficult times:

Personal Accident Cover is essential for anyone who faces the risks of travel or works in environments prone to accidents. In the event of an unfortunate incident, this coverage can provide much-needed financial support, especially if injuries prevent you from working.

Without it, you might struggle to meet daily expenses or cover medical bills during recovery. Much like understanding IDV meaning in car insurance helps you gauge the financial protection your vehicle has, a Personal Accident Cover ensures you and your family are shielded from unforeseen financial burdens. It acts as a safety net, offering peace of mind to both you and your family in times of uncertainty.

It ensures that, even in the face of unexpected challenges, you are financially protected. Whether you are on the road or in a high-risk job, having this coverage is a wise precaution to secure your future and well-being.

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 registered owner of the vehicle that is 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, as per the requirements outlined in 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.

In a circular dated 20th September 2018, the Insurance Regulatory and Development Authority of India (IRDAI) increased the mandatory Personal Accident (PA) Cover to ₹15 lakh. The premium for this coverage was fixed at ₹750 per year. Previously, the PA cover was set at ₹1 lakh for two-wheelers and ₹2 lakh for four-wheelers.

If you wish to increase the sum insured beyond the mandatory coverage, an additional premium will apply, typically ranging from ₹300 to ₹1,000. The exact amount depends on factors such as the vehicle model, the owner's age, location, the Insured Declared Value (IDV) of the vehicle and whether the existing insurance policy has expired. Furthermore, the No-Claim Bonus (NCB) applied to the previous policy may also affect the premium rate.

Accidents are unpredictable, and the aftermath can be devastating, especially when they result in severe injuries or even loss of life. Imagine a speeding truck colliding with your car, causing significant harm to you as the driver. In such unfortunate situations, car insurance with Personal Accident Cover becomes a crucial safeguard, offering financial protection during times of crisis.

Here is why Personal Accident Cover with car insurance is so important:

-Financial Safety Net

If you are involved in an accident that damages your car and causes injury, your standard motor insurance policy will cover the vehicle’s repair costs. However, it will not help with the medical expenses or compensate for your injuries.

This is where PA Cover steps in, offering financial assistance to cover medical bills, hospitalisation and rehabilitation costs. In the event of severe injuries, the cover also compensates for lost income due to your inability to work, providing a safety net during a challenging recovery period.

-Peace of Mind

The benefits of PA coverage extend beyond just financial assistance. In the unfortunate event of death or permanent disability due to an accident, the policy provides compensation to your family, helping them manage the sudden financial burden.

Knowing that you and your loved ones are protected from the unforeseen costs of accidents brings peace of mind, allowing you to focus on recovery rather than worrying about finances

Also Read: Does Car Insurance Cover Car Theft?

Outlined below are the conditions that you must meet when claiming CPA insurance for four-wheelers:**

You will intimate the claim to TATA AIG Limited through:**

-Website: www.tataaig.com

-Email:* general.claims@tataaig.com

-Phone:* 18002667780 (Toll Free)

Next, you must collect and submit immediate loss details. This includes the location of the loss, details of the loss event and names and phone numbers of contact personnel.

The Personal Accident claim notice must be given by you to TATA AIG immediately after a potential or actual loss starts or as soon as reasonably possible after a potential or actual loss begins. Please keep this information in hand when you ring the call centre:**

• The insured’s name

• The insured's contact numbers

• The four-wheeler insurance policy number

• Date and time of the loss

• Location of the loss

• Nature of the loss

• Location and contact information of the individual at the loss site

-Note: The above-mentioned list is only indicative. You will also be asked for additional papers.

-Step 1: Tell the insurer quickly about what happened and the losses.

-Step 2: Ask the authorities for an FIR and Final Report. These papers are key for your CPA claim. Also, collect witness statements if you can.

-Step 3: Go through the instructions provided by your insurer. These include carefully filling claims form and submitting solid evidence capturing the scene of accident.

-Step 4: Send in the required papers online and wait for the insurer to review them.

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

Although we do not anticipate any road mishap while driving, we can not really predict what lies ahead. An accident can occur anytime, and therefore, you must own a Compulsory Personal Accident (CPA) cover with your four-wheeler insurance. It offers the required financial support in case of unprecedented accidents.

When picking a car insurance policy, keep in mind the value of the premium, extent of coverage, additional perks offered, policy renewal and purchase and online claim process.

For example, TATA AIG offers a range of four-wheeler insurance policies designed with comprehensive and customisable coverage, along with added benefits that cater to the varied policyholders’ needs.

Our policies are bundled with personal accident cover, consumables cover and third-party liability protection. This makes it easier to tailor your insurance to suit your requirements.

In addition, our robust network of easily accessible network garages takes care of the repair and replacement of your car parts.

Be mindful that the four-wheeler insurance price or renewal charges can vary based on your chosen plan and any add-on that you may pick. To estimate potential car insurance premium costs, you can leverage our advanced online car insurance premium calculator for better decision-making.