Should you Pick a Personal Accident Cover when taking Motor Insurance?

You can easily say that “road accidents will never happen to me”. You may think that you shall always be safe from them, maybe because you are a very precise and careful driver, or maybe because your car has a lot of useful safety features. This is precisely why there is still low motor insurance penetration in India till now. Even those who do have insurance for their vehicles, the coverage is too low.

According to the Motor Vehicles Act of 1988, there needs to be a minimum level of car insurance. This is for making sure that most vehicles on the road have coverage from third-party liabilities. However, accidents do continue to take place, and this brings devastation to the affected families.

It is not a pretty subject, but it is important to discuss it with your family. Talk to them about your life insurance for your family, and the need to get coverage that you can fall back on in times of need. It is quite prudent to get a suitable personal accident cover for yourself and for your dependents.

Now, we know what you are thinking. You are thinking that a Personal Accident cover forms a part of your motor insurance policy. But that is not true, especially if you have only chosen limited third-party liability insurance. Thus, make sure that you have a strong car insurance protection along with a robust personal accident cover. Don’t go for a cheap car insurance plan.

Accidental Car Insurance- What does it cover?

1. Temporary disability: In case of a temporary disability, your car insurance company shall offer you suitable compensation to your family for the disability’s whole duration. Most insurance companies make such a payment on a weekly basis, for a total and maximum of 52 weeks. This can be a huge difference for the affected family. There is usually no compensation for temporary partial disabilities. If it is available at all, compensation for that is no greater than 20% of the assured sum.

2. Permanent disability: If case of a permanent disability, you get the whole sum assured under your Personal Accident Cover. In case of a permanent partial disability, a predefined part for the total sum assured is given by the company.

3. Accidental death: In case of accidental death, the whole sum assured is given as compensation to your family. However, know that this is given only if the death was within a certain time from the date of accident. In most cases the period is within 90 and 180 days.

If you get a comprehensive car insurance policy, you’ll find that it includes a Personal Accident as well. This protects you and your car. If you need additional accident cover, you can get these as add-on services. These make your base policy stronger. 

What does a Personal Accident Cover not include?

The policies cannot help with the desired sum if:

1. The death was due to suicide

2. If the death was self-afflicted and intentional

3. If the death was due to driving while under the influence of drugs or alcohol

4. If the driver did not have a valid driving license

5. If the vehicle was not driven by the driver as named in the policy document

6. If the death or disability was due to taking part in dangerous sports and activities

Road accidents can destroy a family’s finances. It is therefore important to get car insurance with personal accident cover to cope with such major accidents which can end in death and disability.