Is Personal Accident Insurance covered in Car Insurance?

What is Personal Accident Insurance?

When there is an accident, a car insurance policy takes care of the vehicular damages and the ensued financial costs. However, it does not take care of the owner or driver’s personal life; and unless you have medical insurance already in place, an accident can leave you completely unhinged and helpless.

This is why personal accident insurance is required and is very often included as an add-on in a vehicle insurance policy. If the owner or driver of the vehicle is employed, this insurance provides cover and protection to him/her. The person who avails the policy can claim 100% of the sum assured if the accident has caused permanent loss of his or her arms or legs. In case of the death of the policyholder, the 100% claim can be made by the nominee. However, if the policyholder has more than one vehicle, this add-on is applicable only for the vehicle for which the insurance has been undertaken.

Features of Personal Accident Cover in Car Insurance

Here are some of the features of the personal accident cover as car insurance add-ons:

  • Permanent total disability cover: If the accident causes permanent total disability of the policyholder, the insurance company has a liability to pay the whole sum insured to the individual.
  • Permanent partial disability cover: Depending on the extent of the injury and disability, the company is liable to pay a certain percentage of the insurance to the policyholder, if the accident has caused permanent partial disability to the individual.
  • Temporary total disability cover: The insurance company is liable to pay a weekly benefit cost for a specific period of time, in case the accident leads to home confinement of the individual.
  • Death cover: If the policyholder passes away due to the accident, the insurance company is liable to pay the entire sum to the nominee post the policyholder’s death.
  • Accident hospitalization cover: The policyholder can avail a personal accident cover to take care of the hospital expenses, in case of a car/vehicle accident.
  • Transportation of mortal remains: If the death of the policyholder is due to vehicular accident, the insurance company is liable to pay the nominee a certain amount to transport the mortal remains of their loved one.
  • Educational grant: If the policyholder has dependent children, sometimes the insurance company also provides educations grants in case the policyholder dies due to the accident, depending on existing terms and conditions.

What are the other benefits of personal accident cover in car insurance in India?

Along with providing the obvious financial aids and cover at the time of the accident, the personal accident insurance also has other benefits that the policyholder can avail, such as:

  • Compensation for minor injuries, depending on the policies of private companies.
  • Additional protection for temporary and partial disability, including loss of livelihood and work.

Having personal accident insurance in car insurance is a wise choice for an individual and his family members as well.

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