Importance of Personal Accident Cover And Add-ons For Motor Insurance

Speed thrills but kills 

Every year thousands of people end up losing their lives in search of speed. And many lose lives being part of such accidents. In fact, according to road safety data, around 1.5 lakh Indians became fatal victim of road accidents in 2018. The rapid increase on the number of vehicles on the road has only led to spike in accident deaths. It's impossible for anyone to foresee what the future holds, but availing a personal accident (PA) cover along with a motor insurance, for good health of your vehicle and of course your security, would prepare you to deal with financial crisis arising out of accidents. Also, PA cover provides a safety net even in lack of a life insurance. 

Recently, a PA cover of Rs 15 lakh has been mandated by the Insurance Regulatory and Development Authority of India (IRDAI) for any person purchasing a motor insurance policy. Commenting on the importance of PA cover, Ankit Agrawal, CEO and CoFounder of Insurancedekho said, "If a person has more than one vehicle registered in his name, he does not need to opt for PA cover in all the vehicles. While one cannot foresee and control accidents, PA cover helps cover the insured financially in such circumstances".

A PA insurance product protects the insured from financial liabilities in case of death or disability arising out of vehicular accidents. 

Coverage and scale of compensation for PA cover is as below:

i) 100% payable at the time of death.

(ii) 100% payable in case of loss of two limbs or sight of two eyes or one limb and sight of one eye.

(iii) 50% payable when loss of one limb or sight of one eye.

(iv) 100% payable in case of permanent total disablement from injuries other than named above.

"It is a good initiative by IRDAI to increase the coverage from earlier Rs 2 lakh to 15 lakh as the associated medical costs in case of any incident have gone up," added Agrawal.

Apart from mandatory PA cover, there are other add-ons for motor insurance, which can help you enhance the coverage and soothe any headache that might arise in future.

Some of the most important add-ons that one can acquire with extra pay are:

Zero depreciation cover: A zero depreciation cover would help you reduce the payment during any claim on your part as depreciation is not deducted during the payments. Zero depreciation cover is usually available as an add-on during first five to seven years after purchasing the vehicle.

Road-side assistance: A vehicle breakdown in the middle of the road is one of the worst nightmares but insurers can have you covered for it if you opt for road-side assistance add-on. And if you have it, the next time the insurer will arrange for a mechanic at the location of the vehicle breakdown and you wouldn't need to find a mechanic. And all of this at a very minimum payout.

Consumables: Smaller consumable parts such as nuts, bolts, engine oil, ac gas and others may not cost a lot on its own but collectively could form a big part of the bill. And these small consumable parts are not covered in the insurance. At time of a claim, you will be required to pay for it but you can completely avoid it by buying consumables add-on.

Motor insurance makes us immune to a number of hassles but one must take the required pain at looking at different quotes, coverages to pick the best insurance product. It's also important to add the valuable add-ons to extend the net of coverage. Add-ons may cost us a bit more but will bring along a larger peace of mind with itself.