Passenger Cover in Car Insurance

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A passenger cover is an add-on cover that provides financial insurance to the passengers in the car. During an unfortunate event, such covers can help passengers bear the brunt of medical expenses. 

Dhruv and Sonam were on their way to a party when they met with an unfortunate accident. They were rushed to the hospital and the insurance policy took care of the medical bills of Dhruv who had the insurance in his name. Sonam, on the other hand, received no such assistance from the car insurance company and all medical expenses had to be borne out-of-pocket.

This example makes it clear that standard policies offer financial assistance to cover the injuries caused to the driver of the vehicle, but scarcely cover the passengers of the vehicle. 

While purchasing the car insurance policy, one can opt-in for the passenger cover which will take care of the financial liabilities arising out of the death, temporary or permanent disabilities of passengers in the car.

Features & Benefits of a Passenger Cover

  • This add-on safeguards the interests of the passengers in the vehicle by providing for the cost of medical treatment, disability liability, and financial assistance in case of death during an accident.
  • The add-on covers only a maximum of 3 passengers.
  • The scale of compensation depends on the nature of the injury. For example, death and permanent disability would get the insurer to pay 100% compensation, whereas, loss of one eye or limb will result in 50% compensation.
  • This add-on is of value to both private and commercial vehicle insurance policies. In fact, in the case of commercial vehicles, having this add-on will save the insured from legal hassles of any kind.

The insurance company will pay the compensation as stated below:

Types of InjuryCompensation (%)
Loss of sight of two eyes or two limbs/sight of one eye and one limb100
Loss of sight of one eye or one limb50
Permanent disability from injuries other than mentioned above100

What is Covered in a Passenger Cover?

  • It offers a disability liability cover to passengers of the insured vehicle.
  • This add-on covers medical treatment costs for passengers in case of an accident.
  • It also provides financial assistance in case of the death of passengers.

What is not Covered in a Passenger Cover?

Standard exclusions are as follows –

  • No claims can be made if the car was driven under the influence of alcohol or other intoxicating substances.
  • No claims can be made if the car was driven by an individual who does not have a valid driver’s license.
  • No claims will be entertained if there was contributory negligence on the part of the policyholder or if it was a voluntary act that caused the damage.

Other exclusions under such a policy are as follows –

  • No financial assistance to passengers who have stepped out of the car at the time of the accident.
  • Does not cover more than three passengers.
  • Any attempt at self-injury will not be covered under the policy.

Who Should Buy this Passenger Cover?

Experts advise that the following individuals/car owners must consider purchasing this additional cover –

  • If your family members or friends accompany you often.
  • If you own a commercial vehicle that is being driven around for profit.
  • New/Inexperienced drivers should opt for this cover.
  • People living in accident-prone areas.

Passenger Cover in Car Insurance FAQs

  • 1. Can a passenger cover add-on be purchased for a third party insurance policy?

    No, passenger cover add-on can't be availed with third-party car insurance, like all other add-ons, can be availed only for a comprehensive or an own damage policy.

  • 2. What is the cost of the passenger cover?

    The cost of the add-on depends on the insurance company and there is no standard rate. One must consult the insurer to know more about the same.

  • 3. Can one insure more than three passengers in the vehicle?

    The insurer will provide the cover as per the seating capacity of the vehicle. Hence, if the car is carrying more than its seating capacity, then the additional passengers will not be covered.

  • 4. Does the passenger add-on include the paid driver of the insured vehicle?

    A separate cover must be bought for insuring the paid driver of the vehicle as he or she will not be covered under a passenger cover.

  • 5. How to file a claim for a passenger cover?

    The following procedure must be followed to claim the benefits offered under a passenger cover car insurance add-on -

    • The first and most important step is to inform the insurance provider about the accident and the number of passengers involved.
    • Following this, one must file an FIR at the nearest police station from where the accident occurred.
    • Ensure that you record the witness details, the details of the other party’s insurance, and the car. If you are not in a position to do so immediately, seek assistance.
    • File an official claim with the insurance provider at the earliest. Doing so will result in the insurer assigning a surveyor to check the veracity of the claims and collect the details of the case.
    • In case, the insurer offers an online car insurance claim filing facility, opt-in for this at the time of purchase of the policy, for a hassle-free claim application and approval process.

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