As per the Motor Vehicles Act of 1988, it is mandatory for a bike owner to hold a valid two-wheeler insurance policy in India. Though many newcomers of the insurance world know this for a fact, what many people do not know that it is compulsory to hold a personal accident cover for their vehicle as well.
A personal accident cover has many benefits but first, let us understand its primary function and the coverage it provides.
What is a personal accident cover?
- A personal accident insurance cover provides financial aid to cope with the aftermath of an accident. An accident leads to several long-term issues and losses for the injured and their family. A PA cover can help get through such dire times to a great extent. This cover comes into the picture only when there is an unfortunate event of death; or permanent, complete or partial disablement of the owner of the bike. As per the IRDAI, a personal accident policy should provide a minimum of Rs 15 lakhs as the sum insured.
- The percentage of the sum insured provided during the claim depends upon the event that the policyholder has incurred. In case of death and permanent total disability, the compensation would be 100% of the sum insured. In case of loss of a limb, for instance, the compensation would be around 50% of the sum insured. This percentage can vary based on the nature of the injury.
Benefits of a personal accident cover
There are many reasons to get a PA cover other than the fact that this is mandatory. Let’s take a look at a few of them.
- Financial support during tough times
A PA cover ensures to a certain extent that there is financial support in the tragic event of losing employment as a result of the accident.
- Insures children’s future
Many insurance companies offer children’s education benefit wherein they pay for the insured’s children’s academic fees up to a certain age.
- Worldwide coverage
When you purchase a personal accident cover with your two wheeler insurance, it is valid all over the world. So, no matter where you suffer from the accident, your policy has you covered.
How do you make a claim for a personal accident cover?
- A claim for the personal accident cover can be filed by the nominee or the owner of the bike.
- The first step towards filing the claim is to inform the insurer about the occurrence of such an event. This should be done within the time limit prescribed by the insurer.
- Collect the FIR, testimonials, photographs and medical certificates as appropriate
- You would then be required to file a claim form and submit it after attaching all the required documents and photographs.
- Once all of this done and taken care of, the insurance company will process the claim and disburse the amount after the claim has been approved by them.
It is to be noted that you do not have to purchase a new PA cover with every new two-wheeler you buy. If you are already secured under one PA cover, then that is enough.
We hope this article equips you with all the right information about the personal accident cover in a two-wheeler insurance policy and helps you understand the very important role it plays in ensuring the total security of the rider.
