Personal Accidental Cover in Motor Insurance Policies

What is a Personal Accident Cover in Motor Insurance?

Personal Accident Cover in Motor Insurance offers financial security to the insured (owner-driver) in case of accidental deaths or disability. India accounts for a higher percentage of road accidents. Hence, it is essential to opt for Personal Accident Motor Insurance. The policy can be purchased when a person possesses a valid driving license.

 

While motor coverage can be obtained independently, it is compulsory to purchase a motor Personal Accident Cover while buying or renewing your vehicle insurance. Compensation is extended to owner-drivers in the instances of accidental death or disability.

 

Who is an owner-driver?

In the context of insurance, an owner-driver is an individual who is the registered owner of the vehicle and also drives his or her own vehicle.

 

What is covered in Motor Personal Accident?

The main purpose of Personal Accident Insurance in motor insurance is to cover fatalities and disabilities resulting from accidents.

 

Why Personal Accident Insurance is important?

Road safety is a prominent issue in terms of public health, and it is also one of the leading contributors to global fatalities and injuries. The World Health Organisation (WHO) states that approximately one in ten road-accident-related deaths worldwide originate from India.

 

In the category of traffic rule violation, the primary contributor to road accident deaths was excessive speeding, which accounted for 69.2% of the accident cases. This was trailed by driving on the incorrect side, which accounted for a per cent of 5.2 fatalities.

 

Accidents can also be attributed to the errors of the opposing party, constituting 5.2 per cent of the fatal incidents. Therefore, investing in Personal Accident Insurance can provide a protective shield for the policyholder and their family.

 

Is a Personal Accident Insurance policy mandatory?

According to the India Motor Tariff of 2002, motor vehicle owner-drivers are required to have mandatory Personal Accident Insurance coverage. However, if an individual has already obtained Personal Accident Coverage for their existing vehicle, it is not mandatory for the second vehicle.

 

Benefits of purchasing a Personal Accident cover under motor insurance from Shriram General Insurance

Purchasing a Personal Accident Cover from Shriram General Insurance has many advantages.

• In case of the unfortunate demise of the owner-driver, 100% compensation will be provided.
• In case of disability like loss of one limb or one eye sight, compensation will be provided according to the slab.

The death or disability should be caused by an external impact that can be seen, and it must be clear that this impact was the primary cause.

 

Death/Injury	Scale of Compensation
Accidental Death	100%
Loss of two limbs or sight of two eyes or one limb and sight of one eye.	100%
Loss of one limb or sight of one eye	50%
Permanent total disablement from injuries other than named above.	100%

 

Purchasing the policy will mitigate the effect of an accident in financial aspects. Additionally, it will protect your family when the unfortunate demise of a family member occurs.

What is permanent total disability?

Permanent total disability refers to the condition where the individual can no longer work due to bodily injuries. Examples include if a person loses a limb, hand, or eyesight or becomes paralyzed. In such instances, the insurance provider will pay the policyholder under the permanent total disability cover.

Coverage for accidental death

In case of accidental death of the policyholder occurs, 100% compensation will be provided to the nominees. However, the maximum compensation will be Rs.15 lakhs.

 

The coverage will also depend on the following points.

• The owner-driver should be the registered owner of the vehicle.
• The owner-driver should be insured in the policy.
• The owner-driver should hold an effective driving license.

 

Exclusions

Compensation will not be provided for disability or death if directly or partially caused by deliberate self-harm. If the death or disability is under the influence of alcohol or drugs, compensation will not be provided. Additionally, people involved in illegal activities and racing will also not be provided with any compensation.

 

Case study 1

Mr. Dinesh, 29 years old, was driving his car on a highway. A speeding van hit his car; unfortunately, he lost both his legs in the accident. He was swiftly transported to a medical facility where he received the necessary care. When Dinesh came to know about his disability, he was devastated as he could not resume his daily routine due to his disability. Fortunately, he had taken a Motor Personal Accident Cover from Shriram General Insurance, which gave him 100% compensation. Coping with a disability is undoubtedly challenging, but the financial support provided by the compensation will offer valuable assistance during his recovery journey.

 

Case study 2

Ms Devaki, 25, while driving her two-wheeler on a highway, got punctured. She lost her balance and fell from the vehicle. Unfortunately, she lost her left leg during the accident, resulting in permanent total disability.

In a stroke of good fortune, Ms Devaki had previously acquired a Motor Personal Accident Policy through Shriram General Insurance. This policy proved to be invaluable, as her compensation was swiftly processed and disbursed.

 

Conclusion

A Personal Accident Cover in motor insurance is a safety net that offers comprehensive financial protection against unexpected road accidents for the policyholder and their dependents. Purchasing a Personal Accident Cover from Shriram General Insurance will secure you by providing compensation during unfortunate events.

 

FAQs

1. Is the Personal Accidental Cover mandatory in a Motor Insurance Policy?

According to Indian Motor Tariff 2002, purchasing a Personal Accident Cover is mandatory.

 

2. Do I have to apply for a different Personal Accident Policy if I have more than one vehicle?

Personal Accident Policies can be purchased once, and it is not necessary that you have to buy two policies.

 

3. Is Personal Accident Cover in Motor Insurance only applicable for the owner-driver?

Yes, Personal Accident Cover in Motor Insurance is only applicable for the owner-driver.