Advantages Of Your Personal Accident Policy Coverage
Updated On Nov 07, 2020
What is personal accident insurance? Why should anyone get a personal accident policy? Read along to know the importance of personal accident policy.
Personal accident cover, when it comes to motor insurance, refers to the coverage of any losses incurred due to personal injury or death due to an accident involving your two-wheeler. Every bike owner is mandatorily required to have a personal accident cover of up to Rs. 15 lakh. However, unlike before, now a policyholder has an option to either purchase a personal accident cover with a two-wheeler insurance plan or separately.
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Coverage Available Under a Personal Accident Cover
The coverage offered by personal accident cover varies depending on the extent of the injury faced. In case of death or disability, the owner-driver is compensated by the insurance company for a percentage of the sum that has been insured. The maximum sum of insurance is defined by IRDAI (Insurance Regulatory and Development Authority of India) as Rs. 1.5 Lakhs. In case of the sudden death of the owner-driver in a road accident while driving the insured vehicle, the compensation would be for the entire sum insured. In case of disability of the owner-driver of varying nature, the compensation will depend upon the extent of disability, which will vary as follows:
- Loss of two limbs or two eyes: 100%
- Loss of one limb and one eye: 100%
- Loss of sight of one eye: 50%
- Loss of one limb: 50%
- Permanent total disability: 100%
Importance of Personal Accident Cover
You may feel that if you are a responsible driver and take all the necessary precautions before going on the road and while driving, this is a coverage that you would not need. However, that would be extremely unwise. Not only is it mandatory, it is also very advisable from the perspective of pragmatism. This is due to the fact that even if you are extremely cautious, accidents can still occur despite your best intentions, be it due to small gaps in judgement while on the road or due to the fault of other drivers. Moreover, as mentioned, personal accident cover is mandatory by law. Because of this reason it is extremely important to purchase it.
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It would have the following invaluable benefits in case of an unfortunate event:
- Financial support to the policyholder in case of drugs, treatments, or hospital bills.
- Financial support in case of loss of income due to disability of the policyholder.
- Benefits for the surviving family members of the deceased would be provided in case of death.
Not only is it mandatory by law, it can be seen that personal accident cover is truly an invaluable coverage that you should not underestimate the importance of. It offers benefits and compensation in case of death or permanent disability of the owner-driver whether it is for loss of income or benefits to the family members of the deceased.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.