Car Insurance Compulsory PA Cover
Nov 23, 2020

Compulsory Personal Accident Cover (PA Cover) in Car Insurance

Accidents are unpredictable and can cause major damages to your car. Under situations like these, you need to prepare yourself beforehand. The question is, how can one be well-prepared for any unforeseen events? As per the Motor Vehicles Act, 1988, it is mandatory for you to at least have third party car insurance. If you wish to, you can even go for the extensive cover, i.e. comprehensive policy. In case of an accident, not only do you get injured, but your driver, the third-party, or anybody else who was present in the car also suffers. However, it is possible to protect yourself financially from unfortunate situations like these by opting for a Personal Accident Cover and adding it to your car insurance plan. Along with the third party car insurance policy, it is even mandatory to purchase personal accident cover while buying your motor insurance. As the nature of a personal accident cover is mandatory, it comes bundled with motor insurance. You don’t have to opt for this cover again even if you buy a second car. The Insurance Regulatory and Development Authority of India (IRDAI) declared the unbundling of compulsory personal accident cover from motor insurance from January 1, 2019. This means that every time you purchase an insurance policy for a new car that you’re purchasing in addition to an existing one, it is not necessary to buy a new personal accident cover. In simpler words, if you have a personal accident cover already, you need not buy it again while purchasing motor insurance for the second car you bought. The third party car insurance cover is made mandatory because it offers protection against any damages caused to the property of a third-party or injuries caused to third-party people. If you buy comprehensive coverage, you receive your own damage cover that protects the insured vehicle. You also receive coverage against theft. However, purchasing this cover is optional. The IRDAI decides the premium for third-party insurance every year. Whereas, the premium amount for own-damage cover depends on the car insurance companies. A compulsory personal accident cover must be included in your motor insurance policy, as per the Indian Motor Tariff 2002. This cover will be applicable whether you purchase a third-party policy or a comprehensive one. The insurance policy will list this as a “PA cover for owner-driver.” As per the Indian Motor Tariff, the person who owns the insured vehicle and has a valid driving license is termed as an “owner-driver”. Under a personal accident cover, compensation is provided in case there is death or permanent disabilities as a result of an accident that involves the insured vehicle. According to the IRDAI, you can continue to choose the compulsory personal accident cover under your car insurance policy. In case you don’t have a personal accident cover at the moment or have only a single vehicle, then opt for a bundled compulsory accident cover, as it will prove beneficial to you. You might be confident regarding your driving skills. But, you cannot predict the same for the other people driving their vehicles. Possibilities are that they may dash you and leave you with injuries as well as damages to your precious car. An personal accident cover will not only provide you with financial support but also provide protection right from a minor scratch to major events such as a permanent disability or even death that occurred during accidents.

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