Driving on the roads is not as safe as compared a few decades ago. The risk of accidents and damages have increased significantly due to increasing traffic numbers, not anymore limited within metro towns, but also other parts of the nation. The perennial problem of traffic seems to have no solution to it. But that doesn’t mean you ignore adequate precautionary measures for your car. A car insurance policy helps you avoid financial setback for the expensive repairs that may be required after an accident. Hence, selecting the right type of policy is also important. Depending on your requirement, you can either choose from a third party car insurance plan or a comprehensive cover.

During an accident, it isn’t only third-party injuries or damages the car that required repairs. But the person driving the car, is also at a similar risk. Accidents have probability of resulting into not just death, but also disabilities. These disabilities can either be temporary or permanent in nature. Thus, keeping that in mind, the Indian Motor Tariff, 2002 make is mandatory to have personal accident (PA) coverage.

A personal accident cover of ₹15 lakhs is available as the bare minimum. These personal accident covers are compulsorily required to be purchased with third-party plans as well as comprehensive covers. However, as of 1st January 2019, the regulator, Insurance Regulatory and Development Authority of India (IRDA) has unbundled this cover thereby not requiring purchasing a personal accident coverage more than once. So, if you already have a PA cover, you need not buy it again at renewal or new policy purchase. The price for such PA cover of ₹15 lakh coverage is available at ₹750. Although, insurance companies are free to decide the price for unbundled or standalone PA cover, in effect impacting the car insurance prices. You can visit the official website of IRDAI for further details.

Importance of a personal accident cover

The significance of personal accident cover in your 4 wheeler insurance policy is as follows:

  • Regulatory compliance: As described above, the Indian Motor Tariff 2002 lays down the legal requirement for all vehicle owners to have a personal accident coverage. Thus, it is mandatory to have it along with a third-party policy or comprehensive 4 wheeler insurance plan for your car.
  • Financial assistance in times of need: A PA cover provides unfailing financial assistance. Even if you buy a third-party cover, you need not worry about the injuries sustained by you due to a collision or an accident. When injured, arranging funds for medical treatment can add to mental stress. To alleviate that, a PA cover comes handy.
  • Coverage for beneficiaries during death: Accidents in extreme cases can even lead to death which is no less than a life shattering event for your family. For families with the loss of sole bread winner, there is loss of livelihood too. With a personal accident cover as a backup, the beneficiaries receive financial compensation to make ends meet. * Standard T&C Apply

Since accidents are unpredictable, it is best to stay prepared with the help of an insurance cover. When selecting a suitable policy, make sure to appropriately purchase a PA coverage offering adequate coverage for medical treatments. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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