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Is personal accident (PA) cover mandatory in motor insurance?

In short, yes it is mandatory. But like most things the answer is slightly more nuanced. Read through the entire article to get a detailed understanding about PA cover, and whether it is compulsory to get one under law if you are driving or riding. This article will talk in detail on the following:

  • Meaning of personal accident cover
  • Example of PA cover
  • Is it compulsory?
  • Benefits of having a PA cover

Meaning of personal accident cover

A personal accident cover is a type of insurance policy that provides coverage to the insured in the event of an accident. This coverage helps the insured to cover medical costs that are incurred after an accident has ensued.

Lastly, a PA cover also provides a nomination feature that will disburse a claim amount to the nominee in the event of the demise of the policyholder. PA covers are generally bought as add-on insurance riders along with motor insurance policies.

Is it compulsory?

Yes, buying a PA cover is mandatory under the Indian Motor Tariff Act, 2002. That being said, you need not opt for a PA cover if you already have a health insurance policy that provides accidental coverage (Rs.15 lacs or more). In this case, buying an additional PA cover along with your motor insurance policy is not compulsory.

Examples of PA cover

Example 1: Let us say, Mr. Satish has bought a brand new Honda City car and is currently in the process of buying a motor insurance policy for his vehicle. He also doesn’t have any health insurance policy under this name. In such a case, it is mandatory for Mr. Satish to ensure that he is buying a PA cover along with a third-party or comprehensive motor insurance policy.

Example 2: Next, let us say that Mr. Manish has bought a new Maruti car and is now in the process of buying motor insurance. He is also a savvy person and already has a health insurance plan with accidental insurance bought before hand. In such a case, it is not mandatory for Mr. Manish to by a PA cover along with buying his motor insurance policy.

Benefits of having a PA cover

Let us now talk about some of the most important benefits of having a personal accident cover:

  • A PA cover will provide coverage towards medical expenses arising out of an accident.
  • A PA cover will provide a coverage to the nominee in the event of the policyholder’s death.
  • A PA cover provides compensation if the policyholder is maimed (disabled) after an accident.

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