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Driver's and Passenger's Car insurance Coverage

By Juhi Walia
19 August 2022, 1:28 PM

It is extremely easy to get distracted while driving, especially if you're in a hurry or caught in peak traffic hours. When you are distracted, even a minor accident can easily become a major one. In order to protect the vehicle owners from various mishaps on road, the government has made it mandatory to at least own a car insurance policy. However, along with owning a car insurance policy, all owner-drivers in India must have a personal accident insurance policy of INR 15 lakhs also.

But it is not mandatory to have a passenger insurance policy. It is important to get one so that several alternatives are available to protect any passenger or driver present in the car from the risks of a personal accident. When you purchase passenger and driver car insurance, you can cover the owner-driver, the passengers, and even a member of your family in case they get injured, resulting in death or a permanent disability. 

There is a difference between driver car insurance, which covers only the owner-driver of the vehicle, and passenger car insurance, which can protect up to three additional passengers and the owner-driver. Therefore, a wide range of benefits associated with passenger car insurance.

Why Do Car Insurance Policies Offer Driver and Passenger Coverage?

An owner of an insured car is financially protected in the event of a road accident under the terms of a comprehensive car insurance policy. Your insurer will pay a fixed amount as compensation if the owner-driver of the insured vehicle is killed or permanently disabled in an accident. 

A car owner must pay an extra premium if a paid driver has been hired. Only the paid driver in the application will receive the claim amount. Even if another person uses the insured vehicle for a fee, they cannot benefit from the financial benefits.

Regular car insurance policies do not cover passengers in such accidents. The passengers will pay for treatment out of their own pockets.

Owners of cars are responsible for passengers in their vehicles. The passenger add-on financially protects all passengers riding inside the car. This car insurance add-on cover will enhance your regular car insurance policy, which covers your liabilities in the event of injuries or death to passengers in your vehicle.

Passenger and Driver Car Insurance Benefits

Adding driver and passenger coverage can expand your standard comprehensive car insurance policy. Drivers and passengers get covered for the following reasons:

  • Coverage of medical treatment costs incurred by the driver and passengers who have been injured.
  • Financial assistance in the event of the death of the owner-driver/passenger.
  • Permanent/Temporary disability liability insurance to the owner-driver of the insured car and the passengers in the vehicle.

Exclusions Related to Driver and Passenger Cover?

Some exclusions are associated with the driver and passenger car insurance cover:

  • In some cases, insurers do not provide financial assistance if a passenger has already left the scene of the collision.
  • A private car is not covered if more than three people are in it.
  • Generally, car insurance does not cover injuries caused by attempted suicides or intentional self-injuries.
  • The driver will not be held responsible if an accident involves the influence of alcohol or a drug.

What is the Procedure for Claiming Driver and Passenger Coverage?

Filling out the online claim form is a hassle-free method of claiming the car insurance policy from your motor insurer. The online process to raise a car insurance claim is easy and convenient:

Step 1: Make sure you notify your insurance provider about the accident. You must explain what damage has been done to your car as a result of the accident and whether the passengers have sustained any injuries.

Step 2: Obtain an FIR from the police station near your area.

Step 3: If a third party is involved in the accident, you need to take the complete information of that third party.

Step 4: If you and your passengers have been involved in an automobile accident, you should go to the nearest hospital once informing the insurer to get treatment for your injuries.

Step 5: You will be assigned a surveyor by your car insurance company to assess the extent of the damages to your car so that it can be settled through the claim.

Step 6: If an insured vehicle is involved in an accident with passengers or the owner-driver, the insurer will provide financial assistance for their injuries. If a victim dies as a result of the accident they were involved in, their family will receive compensation.


Life is unforeseeable, and there is no guarantee of what might happen in future. Therefore, you will need to get a driver-passenger insurance policy to cover you if such a situation arises. As part of your car insurance policy, a personal accident cover is a requirement you must fulfil as a car owner.

You have the option, however, to pay an additional fee for a passenger add-on cover to ensure coverage for the person seated in the back seat of your vehicle. During an accident, you should remember that you will only be covered for a maximum of three seated passengers in the car.

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1. Is the driver insured in car insurance?

A standard comprehensive car insurance policy provides financial protection when an insured car owner is involved in a road accident. The insurer will pay a fixed amount to the nominee or policyholder if the owner-driver dies or becomes permanently disabled in an accident with the insured vehicle.

2. What is a personal accident cover?

Motor insurance policies usually don't come with personal accident coverage. However, the policyholders must own them along with their policy. In an unfortunate situaion of policyholder's death, the nominee will receive a lump-sum payment of up to INR 15 lakhs.

3. Is it necessary to purchase a personal accident cover?

Yes, as per Motor Vehicles Act, 1988, it is compulsory for every vehicle owner to have a personal accident cover. 

4. How many passengers does the passenger add-on cover?

Small vehicles such as cars that can carry just three people are covered by this insurance. Passengers exceeding the vehicle's specified seating capacity do not receive financial assistance from insurers. 

5. Does a comprehensive car insurance policy cover passenger injuries in an accident?

This policy does not include injuries to passengers. However, you can include passenger add-on cove to your comprehensive policy, which allows the insurance provider to offer financial assistance for injuries sustained by the occupants of the insured vehicle.

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