Is Personal Accident Cover Mandatory for Two-Wheeler Insurance in India?

If you are planning to buy a two-wheeler, or already own one, you may be aware that as per the Motor Vehicles Act of 1988, it is mandatory to have Third-party insurance coverage. This insurance policy provides financial protection if the insured person were to get involved in an accident concerning a third party and become liable to pay dues. However, another type of two-wheeler insurance coverage that many people may not be aware of as a mandatory purchase for every vehicle owner is a personal accident insurance policy. Commonly known as a personal accident (PA) cover, this insurance policy offers financial aid if the insured were to suffer disability or pass away due to an accident. The fact that 1.55 lakhs people lost their lives due to road accidents in India in the year 2021, with 44.5% of them being two-wheeler riders, emphasises the need for such a policy . One should note that there are only certain conditions under which the PA cover is mandatory for an individual looking to buy a vehicle. We provide a detailed overview of the same below.

What is a Personal Accident Cover?

A Personal Accident (PA) Cover is mandatory for every individual who owns a private vehicle in India. It specifically provides financial protection in the event of accidental death or disability resulting from a vehicle-related incident. This cover is tied to the individual who owns and operates the registered vehicle, ensuring they are financially safeguarded against unforeseen circumstances. Once purchased with the initial two-wheeler insurance policy, it remains valid for subsequent vehicle purchases or policies. Alternatively, if already included in an existing car insurance policy, it also fulfills the requirement for Personal Accident Insurance for two-wheelers.

Understanding the Two-wheeler Insurance

Two-wheeler insurance provides financial protection for bikes and scooters against various risks such as accidents, theft, and natural disasters. There are two main types: third-party liability insurance, which covers damages to others caused by your vehicle, and comprehensive insurance, which includes third-party coverage plus protection for your vehicle. Having two-wheeler insurance is mandatory in India, ensuring riders are financially safeguarded against unforeseen events.

What is the Importance of Personal Accident Cover?

Financial Security 

Personal accident insurance for two-wheelers provides financial support in case of accidental injuries, disability, or death. It covers medical expenses and compensates for income loss.

Comprehensive Protection 

Including PA cover in two-wheeler insurance ensures comprehensive protection, covering both the rider and sometimes the pillion rider. This is essential for complete peace of mind.

Legal Requirement 

In India, having a personal accident cover as part of your two-wheeler insurance is often mandatory, ensuring riders are protected by law.

Family Supports 

In the event of the rider's death, the cover provides financial support to the family, helping them cope with the loss.

Benefits of Bajaj Allianz Personal Accident Cover

PA cover in Two Wheeler Insurance is crucial as it offers extensive financial protection in accidents. It includes benefits such as 200% of the sum insured for permanent total disability and varying percentages for permanent partial disability based on the affected body part. Temporary total disability ensures weekly benefits, with 50% available for your spouse. In the unfortunate event of accidental death, 100% of the sum insured is paid to the nominee. This policy extends coverage to your entire family and can be customized with enhanced sum insured options during policy renewal. Additionally, it provides hospital confinement allowance and ensures hassle-free claim settlement at numerous network hospitals nationwide, easing financial burdens during difficult times.

Factors to Consider for Personal Accident Cover

Here are some factors that you need to remember when buying a Two Wheeler Insurance personal accident cover:

Coverage Amount 

Ensure the coverage amount is sufficient to cover potential medical expenses and loss of income.

Premium Costs 

Consider the affordability of the premium and how it fits into your budget.

Add-On Benefits 

Look for additional benefits like hospital confinement coverage or modification expenses for home and vehicle.

Claim Process 

Check the ease of the claim process to ensure quick and hassle-free settlements during emergencies.

Options Available for Personal Accident Cover in Two Wheeler Insurance Policies

Here are the various options for purchasing a Two Wheeler Insurance with personal accident cover:

Third-Party Insurance 

This insurance covers financial losses you cause to another person or their vehicle. The government mandates that all bike owners must have this insurance.

Comprehensive Insurance 

The comprehensive insurance includes third-party coverage and protects your bike from accidents, fire, theft, and natural disasters. It also covers medical expenses. However, it doesn't cover wear and tear over time.

What coverage does personal accident insurance provide?

First, let us understand the coverage that comes under the scope of compulsory personal accident cover:

Permanent disability

If the insured person suffers a permanent disability that prohibits them from living a normal life, they receive financial compensation under the PA policy. The compensation in this case depends on the kind of disability incurred. For instance, losing both limbs may mean receiving the entire sum assured, while losing only one limb may mean receiving only 50% of the sum assured. Note: Even though one has to buy a PA policy with two-wheeler insurance, any depletion in the sum assured of the PA policy does not have an effect on the sum insured of your two-wheeler plan. While a PA policy is attached to the individual, a two-wheeler policy is attached to the vehicle. *

Passing away

If an unfortunate accident leads to the insured person passing away, their dependents receive the entire sum assured as stated in the policy. Optional covers that provide for hospitalisation expenses arising due to the accident, children’s education benefit, and so on, can also be opted for. As per prevalent laws, the minimum sum assured of a PA cover should be Rs 15 lakhs. A PA policy with a lesser sum assured may not be considered as per the laws. Now that the coverage aspect is clear, let us see when a PA cover is mandatory for bike insurance. *

When is a personal accident insurance cover mandatory?

As per prevalent laws, every individual who owns a private vehicle must have compulsory Personal Accident Cover. As mentioned earlier, a PA cover is attached to the individual riding the vehicle registered in their name. Hence, an individual has to buy a PA cover only once. If you bought a PA cover with your two-wheeler insurance when you bought a bike for the first time, then you do not have to buy a second PA cover when buying another bike or policy. If you have a PA cover with an already existing car insurance policy, then it can suffice as a PA cover with your new two-wheeler insurance policy as well.

Conclusion

Bajaj Allianz General Insurance Company personal accident cover for two-wheelers offers comprehensive protection and peace of mind for two-wheeler riders. With quick claim settlements, long-term coverage options, roadside assistance, easy policy renewals, and cashless claims at partner garages, you are well-supported in case of accidents or emergencies. This policy provides financial security and simplifies the insurance process, making it an essential choice for two-wheeler owners in India.

FAQs

1. Will buying a PA cover increase the cost of my bike insurance policy? 

Yes, if you are buying a PA cover for the first time, then it would increase the bike insurance price. However, please note that a PA cover has to be bought separately. It does not come bundled with a third-party insurance policy or a comprehensive one.

2. What are the exclusions of a personal accident insurance policy? 

As with any other insurance policy, a PA cover has its list of exclusions too. You will not be covered if the accident has occurred in the following scenarios:

1. As a result of war, nuclear activity, civil unrest, and so on.
2. When the owner-rider is under the influence of alcohol or other intoxicating substances.
3. When the accident has been carried out deliberately.
4. When the accident is outside the geographical area covered by the insurance policy.

This is not an exhaustive list. For a detailed list of exclusions, please refer to the policy wordings.

3. Does the PA cover provide medical reimbursement in case of disability due to an accident? 

A personal accident is a benefit-based policy. So, the beneficiaries receive a lump-sum amount if the covered situation were to occur. This lump-sum amount is usually pre-determined and is mentioned in the policy wordings. However, if you want to, you can select the optional medical expense reimbursement cover. The premium for a PA policy with a coverage amount of Rs 15 lakhs is the same across all insurers, as set by the IRDAI. To know the premium of your standard bike insurance, you can use the two wheeler insurance premium calculator. You can visit the official website of IRDAI for further details.   *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale