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All About Personal Accidental Cover in Two Wheeler Insurance Policy

By Vikas Chandra Das
21 July 2022, 11:46 AM

The beauty of life lies in its unpredictability. But here’s the catch, accidents also follow the same law. Therefore, it is advisable to have a Personal Accident Cover to prevent financial stress during crucial times. A Personal Accident (PA) cover in a type of insurance cover that protects the owner in times of an unforeseen accident. Under the Motor Vehicle Act 1988, it is mandatory to have a PA cover in the name of the owner. Whether you’re opting for a bike comprehensive coverage or only third-party liability, Personal Accident (PA) is a must-have. The owner is entitled to the Personal Accident (PA) cover only if they hold a valid driving license.

How much is a Personal Accident Cover?

A Personal Accident (PA) cover compensates the vehicle owner in case of bodily injuries, death or any permanent disability resulting due to an accident. The limit of the coverage is limited to INR 15 lakhs by IRDAI. Here is the percentage of compensation paid in different circumstances:

EventCompensation (in %)
Death100%
Loss of both limbs, both eyes, or one limb and one eye 100%
Total permanent disability100%
Loss of one eye or one limb50%

*PRO-TIP: In case of Accidental Death, the bike insurance company will pay the entire sum insured to the nominee.

Is it mandatory to have a Personal Accident Cover?

Earlier the Motor Vehicle Act only mandated a Third-Party Liability Cover. When the reported claims’ data was analyzed, it was found that bodily injury and property damage were higher. Apart from the TP claims, the cases of injuries to the owner also drew a lot of attention. With effect from January 2019, it was made compulsory to buy a PA cover along with Third Party Liability cover. The intent of the Personal Accident (PA) cover was to financially secure the owner for any losses and/or injuries that could occur due to an accident. 

Benefits of Personal Accident Cover: 

1. Financial support to the policyholder for loss of income: 

If an accident results in permanent disability, Personal Accident (PA) cover ensures that the policyholder is not burdened due to loss of a source of living. 100% of the premium amount is paid in the case of total irreversible disability. 

2. Financial support to the policyholder for medical expenses:

Road accidents demand immediate medical attention. A Personal Accident (PA) cover ensures that the policyholder’s treatment is not delayed due to lack of funds. While hospitalized, the policyholder’s family does not have to worry about medical bills. Medical expenses like hospitalization charges, drugs, and procedure costs are covered by the Personal Accident (PA) cover. 

3. Financial support to the surviving family members:

Apart from the policyholder, the Personal Accident (PA) cover benefits the surviving members of the family, in case of accidental death. 100% of the insured amount is paid to the nominee or legal heir.  

FAQs: 

1. What if I already have a PA cover with my other two-wheeler?

A Personal Accident (PA) cover is for you as an individual, not your two-wheeler. Therefore, if you already have a Personal Accident (PA) cover, you don’t need another one. 

2. What happens to the PA cover in the case of buying a second-hand two-wheeler?

A Personal Accident (PA) cover is for you as an individual, not your two-wheeler. In case of a second-hand two-wheeler, you can buy a Personal Accident (PA) cover as soon as the ownership is transferred in your name. 

Summary: 

A Personal Accident (PA) is mandatory under the Motor Vehicle Act 1988. The Personal Accident (PA) cover protects the owner in times of an unforeseen accident. In case of accidental death of the policyholder, the Personal Accident (PA) cover also benefits the family members by providing 100% compensation to the nominee. 

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