Perhaps nothing can match the pleasure of travelling in a self-owned car. It gives you exceptional flexibility and complete peace of mind. However, an accident can make the pleasure short-lived. So, besides driving carefully, you must purchase car insurance policy to protect yourself from financial losses arising from an accident.
Although accidents can only be averted by a careful driver, the government mandates a third-party car insurance policy to minimise financial losses should an accident happen. So, if you drive without a valid insurance policy, the police may fine you or put you in prison.
Although 3rd party car insurance policies are much cheaper than conventional policies, they do not cover the damages caused to the driver or passenger of a self-owned car. A third-party policy only provides compensation to the third party affected by their property/vehicle.
Comprehensive car insurance policyholders can purchase the driver and passenger cover. It provides sufficient money to the driver and passenger in case of an accident involving the insured car. This article answers all common queries about driver and passenger cover in car insurance and discusses the features and benefits.
Driver and Passenger Cover in Car Insurance - A Primer
According to rules laid by the Insurance Regulatory and Development Authority of India (IRDAI), all owner-drivers of motor vehicles must possess a Personal Accident (PA) cover worth INR 15 lakh. However, the IRDAI hasn't made passenger insurance mandatory. But, Indian insurers provide the facility to cover a car's paid driver and passengers. The driver and passenger(s) can receive compensation for death or disability due to a car accident involving the insured car.
The top benefit of the driver and passenger cover is that while the PA Cover secures only a car's owner-driver, you can use the former to insure as many as three (3) passengers besides the driver. So, driver and passenger cover in car insurance not only increases the coverage limit but also enhances your peace of mind. It also shows that you care for your passengers.
How Much Can You Claim from the Driver and Passenger Cover?
The compensation amount depends on the sum insured (SI) you select on the cover. Generally, insurers pay the driver or passenger(s) for any injuries received inside the car or when alighting or boarding it.
The policyholder can car insurance claim compensation worth 100% if the driver or passenger dies. Similarly, if the insured person loses sight in both eyes or loses both limbs, the policyholder can claim 100% of the SI. Moreover, if the insured person faces permanent disability from any injury, they can get 100% of the SI. However, if the insured person loses one limb or eyesight in one eye, they can get 50% of the SI.
Why Should You Purchase the Driver and Passenger Cover?
Besides providing peace of mind and excellent financial coverage, the driver and passenger cover in car insurance is beneficial for the following reasons:
1. Medical Expenses - Medical treatment is very costly nowadays. Thankfully, the driver and passenger cover provides enough money to pay hospital bills or sponsor critical surgeries.
2. Family Support - An accident puts the sufferer's family in distress. The driver and passenger cover amount ensures that the insured person's family gets sufficient money to provide for their immediate financial needs.
3. Disability Support - Not only death coverage but the driver and passenger cover also offers money if the insured person becomes permanently disabled because of an accident involving the insured car.
4. Passengers Stay Assured - Your passengers would feel happy knowing you care for them. By securing their travel, you will give them more reasons to travel with you.
With Which Car Insurance Can the Vehicle Owner Purchase Passenger Cover?
These are the car insurance plans from which you can choose to buy the passenger cover:
- Comprehensive car insurance plans
- Standalone own-damage car insurance plans
- Third-party car insurance plans
Driver and Passenger Cover Exclusions
Like other covers, the driver and passenger cover also has some exclusions, such as:
- It doesn't cover the damage for more than three passengers in a private vehicle.
- Some insurance providers would not offer financial assistance if the passengers walked away from the incident place.
- Accidental injuries due to attempted suicide or intentional injuries are not covered.
- Any accident in a place where the driver was drunk or high on drugs.
What is the Process of Filing a Claim in a Car Accident?
You may think about how to file a claim as a passenger in an insured car. It is a simple process, primarily via the online car insurance mode. The whole process is streamlined and hassle-free. Following are the steps to file a passenger claim in case of an accident.
- Step 1: Inform your insurance company about the accident, the damage to the vehicle, and whether the passengers were injured.
- Step 2: Go to your local police station and file an FIR report.
- Step 3: If the accident involves a 3rd party, ensure you also take the 3rd party's insurance information along with the vehicle details.
- Step 4: You and the passengers should go to a hospital to treat any sustained injuries.
- Step 5: Raise the claim with the insurer that will provide you with a surveyor to assess the damage to settle the claim appropriately.
- Step 6: The car insurance company also offers financial assistance when treating injuries to the passenger of the insured car or paying the specified amount if the passenger has died.
Conclusion
Adding car driver and passenger car insurance coverage can give you great value. As the car owner, you will be responsible for the passengers riding with you.
With the help of passenger insurance coverage in your policy, you can ensure that everyone in the car is financially secured in case of a sudden mishap. If you want to buy car insurance with a driver and passenger add-on, you can browse the insurance plans available for comparison at Paytm Insurance. These policies offer cashless claim settlements, streamlined renewals, and much more.
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