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The Driver And Passenger Cover In Car Insurance

Written by Sumit Arora
Updated On Oct 26, 20232 min read
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Driver & Passenger Cover | Car Insurance Plan

This policy provides up to Rs. 2 lakh in coverage for medical expenses, disability liability (permanent and temporary disability), and financial assistance in the event of the death of any passengers. Passenger coverage in automobile insurance refers to financial protection for passengers riding in the insured's vehicle. Personal accident insurance is required for the owner-driver of the vehicle, however, it is not required for passengers. However, the lack of compulsion should not prevent people from purchasing passenger coverage as part of their automobile insurance policy, since each life is valuable.

The Driver And Passenger Cover In Car Insurance

Car Insurance Coverage for Drivers and Passengers

Personal Accident Insurance is required for owner-drivers. There are, nevertheless, options for insuring the Personal Accident risks of any paid driver or passenger who uses your vehicle.

  • Owner-Driver Personal Accident Insurance

If you own a car and have a valid driver's license, you must have Personal Accident Coverage as part of your auto insurance policy. It protects you in the event of an untimely death or complete and permanent disability caused by the vehicle registered to your name. The insurance proceeds are only paid to the insured or his or her legal heirs. Even if they were the presumed owner and were driving the automobile at the time of the accident, no one else may file a claim.

  • Coverage for Paid Drivers' Personal Accidents

In another example, you may own a car but hire someone else to drive it. You can pay a small additional charge for an add-on that will cover him/her as well. Personal Accident Cover for Paid Driver is the name of this add-on. Only the individual named as the paid driver in the add-on proposal application is eligible for the sum covered. Even if they were paid to drive that particular automobile, no one else could claim the financial benefits.

  • Unnamed Passenger Personal Accident Insurance

If an accident occurs while your passengers are in your vehicle, you have an obligation to pay for their injuries as the owner of the vehicle. You may protect the life of your passengers as well by purchasing the Personal Accident Cover for Passengers add-on. If your automobile has three passenger seats, you may select to insurance 1-3 people with this add-on. During the collision, there must not be more passengers in the automobile than are legally permitted.

What is the purpose of this add-on cover?

A standard comprehensive auto insurance policy financially covers both the insured vehicle and the owner-driver in the case of an accident. If you are the owner-driver of the covered vehicle, the insurance company will pay the stated insured sum to the insurance policy's nominee in the event of death or permanent incapacity. Regular automobile insurance, on the other hand, does not cover passengers in such situations. The passengers will be responsible for paying for their own medical treatment. You have a responsibility to passengers traveling with you as the owner of the insured car.

What is a Paid Driver Cover?

A particular kind of insurance add-on called Paid Driver Cover is intended to provide coverage for the paid drivers of private automobiles. Since the primary beneficiary of your ordinary auto insurance policy is the owner of the vehicle, this essential add-on makes sure that, in the event of an accident or catastrophe, the financial interests of the driver you hire are not disregarded.

 

What Does a Paid Driver Cover Include?

Accident Protection:

Your driver will receive financial compensation from Paid Driver Cover in the sad case of an accident. Considering the significant danger of traffic accidents in India, this coverage is essential.

Medical Expenses: 

The add-on helps pay for the medical expenses a motorist may have if they are injured in an accident while operating the insured car.

Disability Benefits:

If the driver is rendered completely or partially disabled as a result of the accident, Paid Driver Cover makes sure they have enough money to get them through this difficult time.

Death Benefit: 

Should the driver pass away in a car accident, this coverage grants the driver's family a death benefit, which is a vital source of money during a difficult time.

 

What does a Paid Driver Cover's exclusion list include?

Even though the Paid Driver Cover is all-inclusive, there are some particular exclusions to be aware of:

 

  1. Intoxication: Any collision that happens when the motorist is impaired by drugs or alcohol is not covered.
  2. Invalid Driver's Licence: The coverage is not applicable if the driver does not have a valid driver's licence.
  3. Infraction of Traffic Laws: Claims resulting from a driver's failure to follow traffic laws are not covered.

 

How can I get Paid Driver Coverage on Insurance Dekho online?

The online Paid Driver Cover purchase process with Insurance Dekho is easy to use and smooth:

 

  1. Check out the website: Go to the Insurance Dekho official website.
  2. Choose Auto Insurance: Select the section for auto insurance.
  3. Input Vehicle Information: Enter the information that is required about your car.
  4. Pick Add-Ons: From the list of possible add-ons, choose Paid Driver Cover.
  5. Payment: Proceed with the transaction via the safe payment gateway.
  6. Policy Release: Get your insurance document in your inbox together with the Paid Driver Cover.

 

Advantages of Paid Driver Coverage: Legal Adherence

  1. Compliance with legal requirements: This is necessary when hiring a professional driver. By guaranteeing that you abide by the law, the Paid Driver Cover protects you from possible fines and penalties.
  2. Financial Security for the Driver: In the event of an accident or injury, the coverage acts as your employed driver's safety net, providing financial stability.
  3. Peace of Mind for the Owner of the Vehicle: You can travel the roads with less anxiety about possible financial obligations when you know that your driver is covered.
  4. Enhanced Protection: The Paid Driver Cover adds an extra degree of security and coverage to your current auto insurance policy.
  5. Reasonably priced Premiums: You may protect your employed driver's livelihood with a small increase in your insurance premium, which makes it an affordable option for full coverage.

Take Away

The normal comprehensive insurance coverage does not cover passengers in the insured car. Both commercial and personal automobiles are affected. There is a chance that passengers will be hurt or possibly killed in the event of an accident. Insurance companies provide an add-on cover to provide additional coverage that covers passengers. Having the option to cover liabilities deriving from passenger injuries or death will allow the company entire control over the treatment of passengers' injuries. In this manner, you can cover the automobile and ensure that everyone traveling in it is financially secure. The addition of Passenger Cover to your standard motor insurance policy adds a significant amount of value.

FAQs

  1. Is Paid Driver Coverage What It Is?

Paid Driver Cover is an insurance add-on that offers financial protection in the event of an accident or injury by extending coverage to the professional driver you hire.

  1. Is having Paid Driver Coverage Required?

In order to protect your professional driver's finances in the event of an accident, it is both morally and legally acceptable to obtain Paid Driver Coverage.

  1. In what way may I buy Paid Driver Coverage?

Whether you're buying or renewing your auto insurance, you can quickly add Paid Driver Cover via the internet portal of your insurance company or in person at their location.

  1. Do death benefits come with Paid Driver Cover?

Yes, Paid Driver Cover pays the driver's family a death benefit in the event that the driver dies in an accident.

  1. Is Paid Driver Cover subject to any exclusions?

Yes, often occurring exclusions include driving under the influence, having a suspended licence, and breaking traffic laws.

  1. How much does it cost to include Paid Driver Coverage?

Paid Driver Cover comes with a tiny additional expense, but the coverage it offers is substantial for a relatively small premium.

  1. Are Paid Driver Coverage Add-Ons Available Mid-Term?

The policies of your insurance company will determine this. Some may let you add add-ons in the middle of the policy, while others can make you wait until the renewal.

  1. Do commercial cars qualify for Paid Driver Coverage?

It is possible to acquire Paid Driver Cover for both personal and business automobiles.

  1. In the event that a driver becomes disabled, how can Paid Driver Cover help?

Paid Driver Cover provides monetary compensation to the driver in the case of a partial or complete incapacity resulting from an accident.

  1. Can I get Paid Driver Cover via the internet?

Yes, a lot of insurance companies, including Insurance Dekho, let customers buy and renew Paid Driver Cover online.

  1. Which documents are required in order to purchase a Paid Driver Cover?

Usually, no further paperwork is needed; it can be incorporated with the data of your regular auto insurance policy.

  1. When should a Paid Driver Cover claim be submitted?

After an accident, claims should be made as quickly as possible, preferably within 24 to 48 hours.

  1. If the driver is a family member, does the Paid Driver Cover apply?

In the event that the family member has a formal job as a driver, Paid Driver Cover may be relevant.

  1. What types of collisions are protected by Paid Driver Cover?

It provides protection against injuries, incapacity, and death in the event of an accident that happens while the paid driver is operating the covered vehicle.

  1. Does Paid Driver Cover offer several drivers coverage?

A paid driver cover usually offers insurance for one compensated driver. You may need additional coverage if you have numerous drivers.

  1. Does Paid Driver Cover have an age restriction on drivers?

The eligibility for Paid Driver Cover is usually age-neutral, however, the driver must have a current driver's licence.

  1. How does Paid Driver Cover decide the amount of compensation?

According to the policy terms, the compensation is typically a fixed amount that varies depending on the kind and severity of the damage, disability, or death.

  1. Is it possible to transfer the Paid Driver Cover to a new car?

Since Paid Driver Cover is linked to the particular vehicle specified in the initial policy, it is typically non-transferable.

  1. Is the driver's personal property covered by Paid Driver Coverage as well?

No, its main purpose is to cover driver injury, disability, or death resulting from collisions while operating the insured vehicle.

  1. How does Paid Driver Cover enhance the coverage I already have for auto insurance?

Paid Driver Cover provides an all-encompassing safeguard against financial liabilities resulting from traffic accidents by protecting the employed driver in addition to the vehicle and owner, as does your normal auto insurance policy.

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.

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.
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Written by Sumit Arora
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 Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequent columnist and speaker at major insurer conventions and is a heard name in insurance circles In his free time, Sumit likes to spend time with his family and go on trips

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