Personal Accident (PA) Cover in Bike/Two-Wheeler Insurance

The roads are both crucial and dangerous places at the same time. We never know when a mishap will take place. Hence, it becomes imperative for us to have contingency plans, such as an insurance policy. An insurance policy not only covers the damages suffered by you but also covers those that happened to your vehicle. When it comes to bike insurance, it is extremely necessary for you to get one. Unlike a car, where there is less possibility of physical damage. A bike can expose you to having more injuries than a car. Now, whether you are buying a third-party insurance policy or a comprehensive one, do include PA cover in your bike insurance. Some of you may be curious about knowing what is PA cover in bike insurance? Here is everything about it!!

What is Personal Accident Cover for Two-Wheeler Insurance?

Personal Accident (PA) cover for two-wheeler insurance is an essential addition that provides protection to the rider in case of injury, death, or permanent disability resulting from a bike accident. It is a crucial component of comprehensive bike insurance policies and ensures financial security for the rider and their family.

Is Personal Accident Cover Mandatory?

Yes, Personal Accident Cover (PAC) is mandatory for all vehicle owners in India, as per the guidelines set by the Motor Vehicles Act, 1988. This requirement applies to all two-wheeler and four-wheeler owners to ensure financial security in case of accidents leading to injuries, disabilities, or death. Here are the key points:

1. Separate PAC: If you own multiple vehicles, you don’t need to purchase separate PACs for each; a single PAC can cover all your vehicles.
2. Mandatory for Owners-Drivers: This cover is specifically required for the owner-driver of the insured vehicle.
3. Optional for Pillion Riders: Coverage for passengers or pillion riders is optional and can be added as an add-on.

Personal Accident Cover is a vital safeguard for riders, providing critical financial support during unforeseen circumstances.

How Personal Accident Cover Works?

Personal Accident (PA) cover in two-wheeler insurance works as a financial safeguard for the rider in case of an accident that results in injury, death, or permanent disability. Here’s how it works:

1. Injury Compensation

If the rider gets injured in an accident, the PA cover helps pay for medical expenses, including hospitalization, surgeries, and treatment, depending on the policy terms.

2. Death Benefit

In case of the rider's death due to an accident, the PA cover provides a lump sum payout to the beneficiary (nominee). This helps the family manage financial difficulties in the rider’s absence.

3. Permanent Disability

If the rider suffers permanent disability due to an accident (e.g., loss of limb or eyesight), the PA cover compensates based on the severity of the disability.

4. Affordable Coverage

Personal Accident cover is a cost-effective add-on, usually available for a nominal premium, which can be added to a two-wheeler’s comprehensive or third-party insurance policy.

5. Mandatory Coverage

In many countries, including India, PA cover is mandatory for two-wheeler insurance policies to ensure that riders are financially protected in the event of an accident. This cover is typically valid for one year and can be renewed along with the primary bike insurance policy. It provides valuable protection for riders and their families, ensuring peace of mind on the road.

Importance of Personal Accident Cover

1. Financial Safety for the Insured and Family: Personal accident cover ensures financial support in case of accidental injuries, permanent disability, or death, protecting the insured and their family from monetary stress.
2. Legal Compliance: It is mandatory in India for vehicle owners to have personal accident cover, ensuring riders comply with the law.
3. Comprehensive Protection: Covers medical expenses, loss of income due to disability, and provides a lump sum to the nominee in case of accidental death.
4. Affordable and Essential: This cost-effective add-on provides significant benefits, making it an essential part of bike insurance.
5. Coverage Beyond Regular Insurance: Offers protection for the rider, which is not included in third-party liability insurance, bridging a critical gap in coverage.
6. Peace of Mind: Allows riders to focus on recovery without worrying about the financial implications of an accident.
7. Support During Disability: Provides compensation for temporary or permanent disability, helping individuals manage expenses during challenging times.

Benefits of Personal Accident Cover in Bike Insurance

1. Financial Security for the Rider and Family

Offers compensation in case of accidental injuries, permanent disability, or death, providing essential financial support.

2. Coverage for Medical Expenses

Helps pay for treatment, hospitalization, and recovery costs following an accident, reducing the out-of-pocket burden.

3. Death and Disability Compensation

Provides a lump sum payout to the insured or nominee in the event of death or permanent disability, securing the family’s future.

4. Mandatory and Affordable Add-On

In India and many other countries, PA cover is mandatory and comes at an affordable cost, making it easily accessible.

5. Quick Claim Settlement

Ensures timely financial assistance to manage immediate expenses after an accident.

6. Peace of Mind

Provides assurance to riders and their families, knowing they are financially protected in unforeseen circumstances.

7. Flexible Options

Can be added to both third-party and comprehensive insurance policies for enhanced coverage.

Is the premium amount fixed?

The premium amount (750 INR) is not a fixed one. It can rise if you decide to buy an independent PA cover than a bundled one. An unbundled personal accident cover for your bike can burn a hole in your pocket.

What if the pillion rider gets injured?

If you are riding with a pillion and he or she gets injured in the accident, they will not be covered in your personal accident cover. However, if you opt for an add-on in your policy to cover the pillion rider, your friend or family member sitting behind you will also be covered in the policy. You have to pay a bit higher two wheeler insurance premium for this. The maximum compensation you get by including this add-on in your PA cover will be around 1 lakh.

What is Covered in Personal Accident Cover?

Personal Accident Cover in two-wheeler insurance provides financial compensation for injuries, disabilities, or death due to an accident. Here's what it typically covers:

1. Accidental Death: In case of the insured's death, a lump sum compensation is provided to the nominee or family.
2. Permanent Total Disability: If the policyholder faces permanent and total disability, such as loss of limbs or vision, full compensation is offered.
3. Permanent Partial Disability: Partial compensation is provided for disabilities like the loss of a single limb or eye.
4. Medical Expenses: Some policies may cover medical expenses incurred due to the accident.
5. Funeral Expenses: A fixed amount is sometimes provided for funeral costs in case of death.
6. Coverage for Pillion Riders: Optional add-on coverage for passengers or pillion riders can be included.

Personal Accident Cover ensures financial support for the insured or their family during difficult times, making it a crucial part of bike insurance.

What is Not Covered in Personal Accident Cover?

Personal Accident Cover has specific exclusions that are not covered under the policy. These include:

1. Self-Inflicted Injuries: Injuries caused intentionally, such as self-harm or suicide attempts, are not covered.
2. Accidents Under the Influence: Any injuries or fatalities resulting from driving under the influence of alcohol or drugs are excluded.
3. Uninsured Two-Wheelers: Accidents occurring while riding an uninsured or unregistered vehicle are not covered.
4. Violation of Traffic Rules: Injuries sustained during illegal activities, such as racing or speeding beyond permissible limits, are not included.
5. Pre-Existing Conditions: Any injuries or deaths related to pre-existing medical conditions are excluded.
6. Non-Accidental Deaths or Injuries: Deaths or disabilities not caused by accidents, such as natural causes or illnesses, are not covered.
7. Use for Commercial Purposes: If the bike is used for commercial purposes without proper insurance, the cover is invalid.

When are you not eligible for a PA cover?

The concept of what is personal accident cover in bike insurance is not just limited to this; it also includes some scenarios where you may not get the promised compensation. Here are some situations where the damage might not be covered:

• Injuries caused due to self-intention and suicide.
• Injuries caused while driving under the influence.
• Injuries caused while driving without a driving license.
• Injuries caused while performing an unlawful act like stunts.

What is personal accident cover in bike insurance for paid riders?

Many businesses need riders for commercial purposes like food delivery, bike service, etc. As per the Workmen’s Compensation Act, 1923, all the organisations that hire riders for their business are entitled to offer a personal accident cover to their riders. They have to buy a PA cover for the bike their rider will be using. This provides cover in case the rider dies or faces permanent or temporary disablement.

What to Consider When Getting PA Coverage?

1. Coverage Amount: Assess the sum insured offered by the PA cover. Ensure it provides adequate financial protection for accidental injuries, disability, or death.
2. Policy Inclusions: Check what is covered under the policy, such as accidental death, permanent disability, and partial disability, to understand the benefits.
3. Exclusions: Be aware of exclusions like injuries caused under the influence of alcohol, engaging in illegal activities, or participating in high-risk sports.
4. Premium Cost: Compare premiums offered by different insurers and ensure it aligns with your budget without compromising on essential benefits.
5. Add-On Options: Look for optional add-ons like coverage for hospitalization expenses or additional riders for enhanced protection.
6. Policy Tenure: Choose a policy term that suits your needs, whether as a standalone cover or included in your bike insurance.
7. Claim Process: Ensure the insurer has a straightforward and hassle-free claim settlement process for timely compensation.
8. Insurer Reputation: Verify the insurance provider’s claim settlement ratio and customer reviews to ensure reliability.

How to Buy a Personal Accident Cover in Bike Insurance?

Purchasing a Personal Accident (PA) Cover for your bike insurance is a straightforward process. Here's how you can do it:

1. Choose the Right Insurance Provider

Research and compare insurers that offer comprehensive policies with a Personal Accident Cover.

2. Select a Comprehensive Policy or Standalone PA Cover

Personal Accident Cover is often included in comprehensive policies, but you can also buy it as a standalone add-on.

3. Provide Personal Details

Submit your name, age, address, and contact details, along with your bike's registration number.

4. Verify Eligibility

Ensure you meet the eligibility criteria, such as being the registered owner and rider of the bike.

5. Calculate Premium

Use online insurance calculators to determine the premium for the PA cover.

6. Complete Documentation

Provide necessary documents like identity proof, bike registration certificate (RC), and previous insurance policy details (if applicable).

7. Make Payment

Pay the premium amount online or offline as per the chosen payment method.

8. Receive Policy Confirmation

After payment, you will receive the policy details and confirmation via email or courier. By following these steps, you can ensure financial protection for yourself and your loved ones in case of accidental injuries or death.

How to Claim PA Cover in Bike Insurance?

Filing a claim for Personal Accident Cover is simple if you follow these steps:

1. Inform the Insurer

Notify your insurance provider immediately after the accident. Provide details such as the date, time, and nature of the incident.

2. Submit Claim Form

Fill out the claim form, which can usually be downloaded from the insurer’s website or obtained from their branch.

3. Provide Supporting Documents

Submit the required documents, such as:

1. FIR or police report (if applicable).
2. Medical bills, reports, and prescriptions.
3. Doctor’s certificate for injuries.
4. Death certificate and post-mortem report in case of the policyholder’s demise.
5. Policy documents and bike registration certificate (RC).

4. Undergo Medical Examination

If required, attend a medical examination arranged by the insurer to validate your claim.

5. Follow Up

Stay in touch with the insurer to track your claim’s progress.

6. Claim Approval and Settlement

Once approved, the insurer will transfer the compensation directly to your account. By ensuring all documents are accurate and complete, you can speed up the claim process and receive the benefits smoothly.

FAQs

1. What are the examples of accidental death?

As per the bike insurance firms, accidental death will be considered the same in death from choking, drowning, machinery, car crash, car slips, or any other scenario that cannot be controlled.

2. Does a personal accident cover a heart attack situation?

Yes, if a person suffers from a heart attack while he or she met with an accident, they are entitled to the personal accident claim.

3. Is it mandatory to buy the Personal Accident cover for two-wheelers?

Yes, Personal Accident (PA) cover is mandatory for all vehicle owners under the Motor Vehicles Act. It provides financial protection in case of accidental injuries, disability, or death.

4. Do I have to buy two PA covers if I own two bikes?

No, you don't need separate PA covers for each bike. A single PA cover is sufficient for the owner-driver, as it is linked to the individual, not the vehicle.

5. Does bike insurance include Personal Accident cover?

Yes, most comprehensive bike insurance policies include PA cover. However, for third-party insurance, you may need to purchase it separately.

6. What documents are required to buy PA cover in bike insurance?

Typically, you need documents like your bike registration certificate, ID proof, and an existing insurance policy (if any). Check with the insurer for specific requirements.

7. Why choose personal accident cover?

It offers financial security for medical expenses, disability, or death due to accidents. It ensures peace of mind for the rider and their family.

8. Does the PA cover in bike insurance apply to just the owner-driver of the two-wheeler?

Yes, PA cover applies primarily to the owner-driver. If you want coverage for other riders, you may need to purchase additional covers or riders.