Car insurance is not simply about protecting a car; it is also about protecting the driver’s life. Personal Accident (PA) coverage is an essential component of a motor insurance policy. Over the years, the IRDAI (Insurance Regulatory and Development Authority of India) has issued numerous guidelines to ensure that vehicle owners are protected, including mandatory and compulsory personal accident cover in some instances.
What exactly does personal accident cover offer? Who is required to purchase it? And can you skip it if you already have life or term insurance? This blog addresses many of your questions about mandatory personal accident cover and how it integrates with your comprehensive car insurance plan.
What is Personal Accident (PA) Cover in Car Insurance?
Personal Accident (PA) Cover is a specific part of your motor insurance policy designed to protect the owner-driver against the financial consequences of accidental injuries or death resulting from a road accident.
Whether you own a car, bike, or commercial vehicle, a PA cover ensures compensation in the event of:
- Death
- Permanent total disability
- Permanent partial disability
The compulsory personal accident cover's meaning lies in offering crucial support for medical bills, rehabilitation, and income replacement for the affected driver and their family.
According to current guidelines, this coverage is often bundled with comprehensive insurance but is also available as a standalone option for individuals who already have a separate vehicle policy.
IRDAI Guidelines on Mandatory PA Cover
The IRDAI has made several modifications to the structure of mandatory personal accident cover for vehicle owners over the years. Until a few years ago, PA cover was included by default in all car insurance policies. However, a significant update in 2019 allowed vehicle owners the flexibility to opt for or exclude it, provided they already had an existing PA policy.
Key IRDAI Highlights:
- A Personal Accident Cover of ₹15 lakh is mandatory for all owner-drivers of insured vehicles in India.
- The premium for this coverage is standard across insurers and currently stands at ₹750 per year
- If a person owns multiple vehicles, they are not required to purchase various PA covers.
However, is personal accident cover mandatory if I have a term insurance policy? No, but only if the term insurance provides similar accident-related benefits. However, this is rare, so it’s advisable to retain PA cover separately.
Thus, IRDAI mandates a compulsory personal accident cover unless you're already covered under a valid PA policy elsewhere.
Who Needs to Buy a Personal Accident Cover?
Any person who owns and drives a vehicle is required by law to have a Personal Accident (PA) Cover—this applies to both new and existing policyholders.
- New vehicle owners: You must opt for PA cover when buying car insurance or two-wheeler insurance.
- Existing vehicle owners: Required to continue the PA cover when renewing their policy unless they can prove they are already covered under a standalone PA plan.
So, if you're wondering, "Is personal accident cover mandatory in India?" the answer is yes, for all owner-drivers, unless you have a similar PA cover from another valid source.
Is PA Cover Mandatory for All Vehicles?
The legal requirement for compulsory personal accident cover differs slightly depending on the type of vehicle.
Requirement for Private Cars
If you own a personal car, IRDAI mandates that the policyholder must include PA cover when buying types of car insurance, whether third-party or comprehensive. The only exception is if the driver already has a valid standalone od section.
Requirement for Commercial Vehicles
Commercial vehicle owners and fleet operators must ensure that PA coverage is in place for every registered driver. This becomes especially important because these drivers are exposed to longer hours on the road and a greater risk.
- Coverage of ₹15 lakh is mandatory for the registered owner-driver.
- In cases of multiple drivers, group PA coverage is recommended.
Two-Wheelers and Personal Accident Cover
If you’re wondering about compulsory personal accident cover for a 2-wheeler, the law applies here as well. All bike and scooter owners must purchase a PA cover while buying or renewing their bike insurance—unless already covered elsewhere.
Whether you ride occasionally or daily, PA cover is not just mandatory—it’s smart protection.
Benefits of Having a Personal Accident Cover
Beyond being a legal requirement, the benefits of personal accident cover are extensive. It provides financial security and emotional relief during times of crisis.
Coverage for Permanent Disability
In the unfortunate event that the policyholder suffers a permanent disability due to a road accident, PA cover ensures a lump-sum payout. This payout helps manage rehabilitation, mobility devices, loss of income, and future care expenses.
For example, if a car owner loses limb function and is unable to return to work, the payout becomes a crucial source of financial support.
Compensation for Accidental Death
If the policyholder dies due to a vehicular accident, the family or nominee receives a lump sum of ₹15 lakh. This benefit ensures that your dependents are not left financially stranded during a traumatic time. This is one of the most essential benefits of motor insurance, especially if you are the primary breadwinner in your household.
Peace of Mind for Family Members
Knowing that financial compensation is available in the event of an accident gives both you and your family peace of mind. While money can’t undo the damage, it can ease the stress of managing expenses during medical emergencies or emotional loss.
Conclusion
So, is personal accident coverage mandatory for car insurance in India? Unless you're already covered under an equivalent standalone primary care plan.
With rising road accident statistics in India, PA cover is more than just a checkbox for compliance. It offers financial protection, ensures peace of mind, and strengthens the benefits of the best motor insurance.
Whether you drive a private car, operate a commercial vehicle, or ride a two-wheeler, this cover is a small price to pay for life’s unpredictable turns.
And remember, if you're managing multiple vehicles, is personal accident cover mandatory for multiple vehicles? No, you only need to maintain one valid PA policy as proof of coverage.
In the end, PA cover is not just compulsory personal accident cover for vehicle owners—it’s a necessary safety net in your risk management plan. Ensure it remains active, regularly reviewed, and aligned with your driving profile.
FAQ
Yes. Most life insurance policies don’t offer benefits such as a lump sum payout for disability resulting from an accident. PA cover complements life insurance by providing targeted protection for accidental injuries.
Only if you already have a valid standalone PA policy of ₹15 lakh or more. Otherwise, PA cover remains mandatory personal accident cover during renewal.
Yes. PA cover is associated with the driver/owner, not the vehicle type. Whether your car is new or used, you must have valid PA coverage unless you already have a separate policy.
Absolutely. If you own multiple vehicles or want more flexibility, you can opt for a standalone PA cover instead of duplicating it for every car insurance policy.
Get Quote
Insurance is the subject matter of solicitation. IRDAI Registration Number - 134. CIN # U66010MH2007PLC166770.
Developed & Maintained by Universal Sompo General Insurance Co.Ltd