If you are planning to buy a two-wheeler, or already own one, you may be aware that as per the Motor Vehicles Act of 1988, it is mandatory to have third-party insurance coverage. This insurance policy provides financial protection if the insured person were to get involved in an accident concerning a third party and become liable to pay dues.
However, another type of two-wheeler insurance
coverage that many people may not be aware of as a mandatory purchase for every vehicle owner is a personal accident insurance policy. Commonly known as a personal accident (PA) cover, this insurance policy offers financial aid if the insured were to suffer disability or pass away due to an accident. The fact that 1.55 lakhs people lost their lives due to road accidents in India in the year 2021, with 44.5% of them being two-wheeler riders, emphasises the need for such a policy 
One should note that there are only certain conditions under which the PA cover is mandatory for an individual looking to buy a vehicle. We provide a detailed overview of the same below.
What coverage does personal accident insurance provide?
First, let us understand the coverage that comes under the scope of compulsory personal accident cover
If the insured person suffers a permanent disability that prohibits them from living a normal life, they receive financial compensation under the PA policy. The compensation in this case depends on the kind of disability incurred. For instance, losing both limbs may mean receiving the entire sum assured, while losing only one limb may mean receiving only 50% of the sum assured.
: Even though one has to buy a PA policy with two-wheeler insurance, any depletion in the sum assured of the PA policy does not have an effect on the sum insured of your two-wheeler plan. While a PA policy is attached to the individual, a two-wheeler policy is attached to the vehicle. *
If an unfortunate accident leads to the insured person passing away, their dependents receive the entire sum assured as stated in the policy.
Optional covers that provide for hospitalisation expenses arising due to the accident, children’s education benefit, and so on, can also be opted for.
As per prevalent laws, the minimum sum assured of a PA cover should be Rs 15 lakhs. A PA policy with a lesser sum assured may not be considered as per the laws.
Now that the coverage aspect is clear, let us see when a PA cover is mandatory for bike insurance
When is a personal accident insurance cover mandatory?
- As per prevalent laws, every individual who owns a private vehicle must have compulsory personal accident cover.
- As mentioned earlier, a PA cover is attached to the individual riding the vehicle registered in their name. Hence, an individual has to buy a PA cover only once. If you bought a PA cover with your two-wheeler insurance when you bought a bike for the first time, then you do not have to buy a second PA cover when buying another bike or policy.
- If you have a PA cover with an already existing car insurance policy, then it can suffice as a PA cover with your new two-wheeler insurance policy as well.
FAQs on personal accident insurance
1. Will buying a PA cover increase the cost of my bike insurance policy?
Yes, if you are buying a PA cover for the first time, then it would increase the bike insurance price
However, please note that a PA cover has to be bought separately. It does not come bundled with a third-party insurance policy or a comprehensive one.
2. What are the exclusions of a personal accident insurance policy?
As with any other insurance policy, a PA cover has its list of exclusions too. You will not be covered if the accident has occurred in the following scenarios:
- As a result of war, nuclear activity, civil unrest, and so on.
- When the owner-rider is under the influence of alcohol or other intoxicating substances.
- When the accident has been carried out deliberately.
- When the accident is outside the geographical area covered by the insurance policy.
This is not an exhaustive list. For a detailed list of exclusions, please refer to the policy wordings.
3. Does the PA cover provide medical reimbursement in case of disability due to an accident?
A personal accident is a benefit-based policy. So, the beneficiaries receive a lump-sum amount if the covered situation were to occur. This lump-sum amount is usually pre-determined and is mentioned in the policy wordings.
However, if you want to, you can select the optional medical expense reimbursement cover.
The premium for a PA policy with a coverage amount of Rs 15 lakhs is the same across all insurers, as set by the IRDAI. To know the premium of your standard bike insurance, you can use the two wheeler insurance premium calculator
. You can visit the official website of IRDAI for further details.