Passenger Cover in Car Insurance: What You Must Know
02 December,2024
Updated:02 December,2024
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44In India, our cars serve our entire family and loved ones. Unanticipated accidents could turn a pleasant journey with loved ones into a difficult experience. Passenger Cover in Car Insurance provides critical financial assistance to passengers by covering medical bills and compensation in the event of injury or death. This crucial add-on guarantees the safety of the people travelling with you and provides peace of mind for you and your loved ones. This blog will explore how Passenger Cover works, why it’s essential, and whether it’s worth adding to your policy.
What is Passenger Cover in Car Insurance?
Passenger Cover is an optional add-on to automobile insurance that protects passengers financially in the event of an accident that causes injuries, disability, or even death. This coverage can assist with expenses for medical care and compensate for losses. It is especially useful for people who frequently travel with family or coworkers since it adds an extra degree of financial security for everyone in the car.
Why is Passenger Cover Important?
While basic Third-Party Insurance covers damage to other cars and people, it does not protect passengers in your car. When you choose Car Insurance with Passenger Cover, you ensure that your loved ones are financially protected in the case of an accident. Accidents can often result in expensive medical bills, so obtaining this coverage not only gives a sense of peace but also financial support when it's most crucial.
How Does Passenger Cover Work?
Passenger Cover provides financial support in the event that an unnamed passenger suffers bodily injuries while travelling in an insured vehicle. This coverage is specifically for passengers (excluding the driver, cleaner, or insured individual) in cases where accidents occur due to external, visible, and accidental factors. Compensation is based on a clearly defined scale, ensuring timely assistance during emergencies.
Key Points of Coverage
Single claim per passenger: In the case of an accident, each passenger is only eligible for compensation under one category, regardless of how many injuries they sustained. It is essential to be aware that each passenger's total liability is restricted to a specific amount during the policy period, so that claims are dealt with in accordance with the established guidelines.
Exclusions: Exclusions are in place to provide clarity about what is and is not covered by Passenger Cover. Please refer below for more details on what is not covered in Passenger Cover.
Claim Approval and Disbursement: Once approved, funds are sent to the injured passenger or their appointed legal representatives, ensuring that compensation reaches those in need as soon as possible.
Compensation Scale
|
Injury Type |
Compensation |
|
Death |
100% of the insured amount |
|
Loss of two limbs or sight in both eyes, or loss of one limb and one eye |
100% |
|
Loss of one limb or sight in one eye |
50% |
|
Permanent Total Disability (other than listed above) |
100% |
What Does Passenger Cover Include?
Here's what passenger assist in Car Insurance often covers:
- Medical expenses: This includes hospital and treatment expenses for injured passengers.
- Disability compensation: This provides financial assistance if an accident leads to permanent or temporary disability.
- Death benefit: In the event that the passenger dies, a nominee receives a lump sum payment.
- Ambulance services: Compensation for ambulance fees to transfer the wounded passenger is covered.
What is Not Covered in Passenger Cover?
- Intoxicated driving: There will be no compensation if the driver was found to be under the influence of alcohol or drugs.
- Unauthorised drivers: Claims are rejected if the car was driven by someone who did not possess a valid license.
- Intentional accidents: Attempted suicide or intentional self-injury is not covered.
- Commercial use of a private vehicle: Claims will not be accepted if the vehicle was used for business reasons that are not covered by the policy.
Benefits of Buying Passenger Cover
- Enhanced protection: In the event of an accident, your loved ones are covered for medical emergencies, giving you added reassurance on the road.
- Financial support: It relieves the financial burden associated with hospitalisation or treatment costs, allowing you to concentrate on recovering.
- Peace of mind: Knowing that your passengers are covered by insurance enables you to drive with confidence, reducing anxiety during your journey.
- Affordable: Adding Passenger Cover is a minor expenditure when compared to the possible medical expenses, making it an intelligent choice.
- Customisation: You have the opportunity to select coverage limits that are suitable for your personal needs and budget, ensuring that you receive adequate coverage.
Is Passenger Cover Mandatory?
The answer to the question of whether passengers are covered by Car Insurance is largely dependent on the type of policy you carry. In India, Third-Party Car insurance is required by law. However, it only covers third-party damage, which means your passengers are not covered by this type of insurance. However, if you have comprehensive Car Insurance, you may add Passenger Cover as an extra benefit. While this is not a legal necessity, it is certainly an appealing option for added security and peace of mind.
How Much Does Passenger Cover Cost?
The cost of Passenger Assist in Car Insurance varies based on several criteria.
- Number of passengers covered: Premiums increase with the number of passengers insured, determined by the vehicle's seating capacity.
- Coverage limit: If you select a higher coverage limit, you can expect to pay more as well.
- Insurance provider: When selecting an insurance company, it's important to compare premium costs since they may vary to some extent.
How to File a Passenger Claim in a Car Accident?
In the event of an accident, take these procedures to make a passenger claim:
- Inform your insurance provider: Report the accident to your insurance right away.
- Gather evidence: Collect evidence such as photographs, videos, hospital bills, and treatment records.
- File an FIR: If necessary, submit an FIR at your local police station.
- Submit documents: This includes the claim form, FIR copy, and medical bills.
- Claim settlement: The insurance company will evaluate the claim and, once verified, claims will be settled .
In Summary
Passenger Cover in Car Insurance can be crucial for providing financial security to passengers in the case of an accident. It can help cover medical bills, compensate for disability, and even provide compensation in the event of death. This add-on provides peace of mind for both drivers and passengers. Given India's unpredictable road conditions, having this coverage is essential for ensuring that your loved ones or co-passengers do not face unexpected financial issues.
Protect your passengers without compromise by choosing Shriram Car Insurance. Along with affordable plans, you can customise your policy with multiple add-ons, including Passenger Cover in Car Insurance. With minimal documentation and quick claim settlements, Shriram Car Insurance ensures your loved ones stay protected during every journey. Enjoy seamless roadside assistance and personal injury coverage tailored to your needs.
FAQs
1. Is Passenger Cover available with third-party Car Insurance?
Passenger Cover is included only in Comprehensive Car Insurance, which protects both your vehicle and your passengers in an accident. In contrast, Third-Party Insurance only covers damages to others, leaving you and your passengers unprotected.
2. Can I claim Passenger Cover if the accident occurs outside India?
Many insurance policies generally cover accidents that happen only within India. To ensure you fully understand the details of your coverage, check with your insurer for any specific terms or limitations that might apply.
3. What is the maximum number of passengers covered under this add-on?
The coverage amounts offered by insurers can vary widely. Typically, insurance policies are structured to protect a vehicle's maximum seating capacity, ensuring comprehensive coverage for all passengers in the event of an incident.
4. Does Passenger Cover apply to cab services or ride-sharing vehicles?
Some insurers may offer specialised Passenger Coverage for commercial vehicles, but standard personal Car Insurance policies usually exclude them.
5. Will my premium increase if I include Passenger Cover?
Yes, adding a Passenger Cover will slightly increase your Car Insurance premium, but it is a small price to pay for added peace of mind.
6. Can I buy a Passenger Cover for an old vehicle?
Yes, you can buy Passenger Cover for older vehicles as long as they are insured under a comprehensive plan.
