Passenger Cover Add-on Cover in Car Insurance

Car insurance is essential for protecting both the vehicle and its occupants. A Passenger Cover in Car Insurance is an add-on that extends protection to the passengers travelling in your vehicle. This cover provides financial support for medical expenses and liabilities in case of an accident. While a standard car insurance policy generally covers the car owner, it does not cover passengers unless you opt for this additional protection. Adding this cover to your car insurance policy ensures that passengers, whether family, friends, or other passengers, are covered in case of injury or even death resulting from an accident.

This add-on is especially valuable for people who frequently transport passengers or use their car for ridesharing purposes. By purchasing the passenger protection cover, car owners provide extra security to those who may otherwise be left without coverage. If you're looking to offer full protection for everyone in your vehicle, consider this vital add-on for your peace of mind and to avoid out-of-pocket medical expenses in case of an unfortunate incident.

What is Passenger Cover in Car Insurance?

A Passenger Cover in Car Insurance is an additional policy option that provides coverage for the medical costs and liabilities of passengers in your vehicle in the event of an accident. This cover is optional and can be added to your comprehensive car insurance policy. It is designed to safeguard passengers by covering expenses such as hospitalisation, medical treatment, and other related costs.

In addition to the medical treatment for passengers, the cover also compensates for the permanent disability or death of passengers involved in the accident. While the car owner and the driver are covered under a standard car insurance policy, passengers are generally excluded unless this additional cover is purchased.

Is Driver and Passenger Cover in Car Insurance Mandatory?

In India, Personal Accident Coverage for the owner-driver is mandatory under car insurance policies, as per the guidelines set by the Insurance Regulatory and Development Authority of India (IRDAI). However, driver and passenger cover is not mandatory for passengers or paid drivers. Car owners are not obligated to include passenger protection in their policy.

Though not required by law, including driver and passenger cover is highly recommended as it ensures that both the driver and passengers are financially protected. This cover safeguards everyone in the vehicle, including family members, friends, and even paid drivers, in case of an unfortunate event. By opting for this add-on, you can avoid significant financial strain and ensure comprehensive protection for all occupants in the car.

Personal Accident Cover for Owners, Drivers, Paid Drivers, and their Passengers

Personal Accident Coverage for owner-drivers is mandatory. However, there are options available to insure the Personal Accident risks of any paid driver or passenger who would use your car.

Personal Accident Cover for Owner-Driver

If you are a car owner with a valid driving license, it is compulsory for you to have Personal Accident Coverage under your car insurance policy. It gives you coverage in case of an unfortunate demise or total permanent disability caused in direct relation to the vehicle registered to your name. *

The Condition: The insurance amount is payable to the policyholder or his/her legal heir only. No other person can raise a claim even if they were deemed owner and happened to be driving the car at the time of the accident.

Personal Accident Cover for Paid Driver

In another scenario, you may own a car but employ another individual for driving it. You have the option to pay a little extra premium for an add-on to cover him/her as well. This add-on is called Personal Accident Cover for Paid Driver. *

The Condition: The sum insured is payable to only the person declared as the paid driver in the add-on’s proposal application. No other person could claim the financial benefits even if they were paid to drive that particular car.

Personal Accident Cover for Unnamed Passenger

As the owner of the car, you are liable to pay for any injuries that your passengers may suffer in case of an accident while they are in your vehicle. You have the power to insure the lives of your passengers as well by getting an add-on called the Personal Accident Cover for Passenger. In this add-on, if your car has three passenger seats, you can choose to insure up to three passengers. *

The Condition: There must not be more passengers in the car than legally allowed, during the accident.

How Does The Driver And Passenger Protection Cover In Car Insurance Work?

A standard comprehensive policy ensures financial protection for your car in the event of an accident. In addition to that, the personal accident cover, a part of your comprehensive insurance plan, protects the owner-driver in case an accident results in an injury or death. When it comes to a paid driver, the policyholder can buy a personal accident cover for paid driver. However, no coverage is available for the passengers in your car. That’s when you need to opt for a passenger protection cover. Also known as passenger protection cover for unnamed passengers. *

Passenger protection cover is an add-on to the standard car insurance policy that covers the passengers' medical expenses and liability claims in case of an accident. The cover can be extended to all passengers, including family members and friends, travelling in the insured vehicle. In case of an accident, the passenger protection cover will compensate for medical expenses, including hospitalisation costs, doctor's fees, and other related expenses. *

Range of Compensation under Passenger Cover

The range of compensation offered under Passenger Cover varies based on the severity of the injuries sustained during the accident. Bajaj General Insurance Company typically covers:

●        100% compensation in case of death.

●        125% compensation for loss of both limbs or eyesight.

●        50% compensation for the loss of one limb or eye.

●        125% compensation for permanent disability arising from injuries not covered by the above categories.

These compensation amounts are designed to ease the financial burden that arises from accidents, ensuring passengers receive the necessary medical treatment and support.

Benefits of Driver and Passenger Cover

Adding Driver and Passenger Cover to your car insurance policy provides several benefits. It offers financial protection to both the driver and passengers in case of an accident, reducing the financial impact on the policyholder. Here are the primary advantages:

Medical Expenses Coverage:

The driver and passenger protection cover pays for medical treatment in case of an accident. It ensures that the driver and passengers do not have to pay for their hospital bills, doctor’s fees, and related treatment costs.

Disability and Death Coverage:

If an accident results in permanent disability or death of the driver or passengers, the insurance provides compensation. This cover ensures that the family of the deceased or disabled individual is financially supported.

Wider Coverage:

The addition of this cover extends your policy’s scope. While regular insurance covers the car and the driver, this add-on ensures comprehensive protection for passengers as well.

Reduced Financial Burden:

With the driver and passenger cover, the financial burden of hospital bills, medical expenses, and accident-related liabilities is significantly reduced. This can be crucial in the event of a serious accident.

Peace of Mind

Knowing that your loved ones or passengers are protected provides peace of mind, especially when travelling long distances or in areas with high traffic.

By adding this cover, you ensure full protection for everyone inside your vehicle, enhancing your car insurance policy’s value.

Exclusions of Passenger Cover in Car Insurance

Just like all insurance policies, the unnamed passenger cover has certain exclusions.

●        No financial assistance is provided by the insurer if the passengers have walked away from the scene of the accident. *

●        The passenger cover is limited to the maximum seating capacity of the car as specified by the manufacturer. Thus, if the number of passengers exceeds the specified number of people by the manufacturer, no coverage is available. *

●        The injuries to the passengers due to attempted suicide or self-inflicted injury are excluded by the unnamed passenger cover. *

●        Accidents that injure the passengers when the driver was under the influence of alcohol, or any other intoxicating substance are specifically excluded.*

What are the Steps to Raise a Claim under Driver and Passenger Cover?

Raising an online car insurance claim under the driver and passenger cover is a simple and hassle-free process. Here are the steps you must follow:

Step 1:

The first and foremost thing when raising an insurance claim for passenger cover is to inform your insurance company. Here’s when you explain to the insurer about the accident and the injuries faced by the passengers.

Step 2:

The next step is to file an FIR at the police station of the governing jurisdiction. This is a critical step when you raise an insurance claim. Thus, do not skip this step.

Step 3:

In case of an accident involving a third party, make sure to specify the details of such third party too.

Step 4:

Specify the details of the hospital where you and the passengers of your car are receiving treatment for the injuries.

Step 5:

The insurance company appoints a surveyor to evaluate the damages to your car and commence the settlement process accordingly.

Step 6:

The insurance company provides financial assistance for the treatment of the passengers and even the owner-driver. Depending on the policy’s terms and conditions, the insurance company will pay compensation to the victim's family in case of death.

Conclusion:

Personal Accident Cover is an essential add-on to any car insurance policy, providing comprehensive protection to all occupants of the vehicle. It is crucial to understand the policy's inclusions and exclusions to ensure that you make an informed decision. In case of an accident, the claim process is simple, and the insurance company will settle the claim as per the policy terms. Therefore, it is recommended to include passenger cover in your car insurance policy to ensure the safety and protection of all passengers.