What is Personal Accident Cover in Bike Insurance?

Posted on: Dec 5, 2024 | 3 mins | Written by: HDFC ERGO Team

What is Personal Accident Cover in Bike Insurance?

In India, where motorcycles and scooters dominate the roads, ensuring safety is paramount. Bike insurance often includes personal accident cover, a vital component that offers financial protection against the unforeseen consequences of a severe accident.

Whether you have third-party or comprehensive bike insurance, understanding this cover is crucial for safeguarding yourself and your family.

What is Personal Accident Cover for Two-Wheeler Insurance?

Personal accident cover in bike insurance provides compensation in the event of an accident. This cover is designed to protect the policyholder or their dependents against financial losses resulting from accidental injuries, disabilities, or death. According to The Motor Vehicles Act, personal accident cover is mandatory when purchasing or renewing either comprehensive or third party bike insurance.

The cover is intended for individuals aged 18 to 65 years who hold a valid driving licence. It is crucial to ensure that you are financially secure if an accident occurs, given that two-wheelers are among the most accident-prone vehicles on the road.

Benefits of Personal Accident Cover in Bike Insurance

The personal accident cover provides several benefits, offering both financial and emotional support during challenging times. Here’s a detailed look at its advantages:

1. Financial Protection for Permanent Disability

Accidents can lead to severe injuries that might result in permanent disability. The personal accident cover ensures that you receive compensation if such a situation arises. This financial assistance can be crucial in covering medical treatments, rehabilitation costs, and adapting to a new lifestyle due to the disability. The compensation typically covers 100% of the sum assured for total disability and a percentage for partial disability.

2. Coverage for Medical Expenses

Accident-related medical expenses can be substantial, often leading to significant financial strain. Personal accident cover provides a lump-sum payment to cover these expenses. This coverage ensures that you are not burdened with medical costs during a time of recovery, allowing you to focus on getting better rather than worrying about financial issues.

3. Support for Families

In the unfortunate event of accidental death, the personal accident cover provides financial support to the deceased’s family. This benefit is particularly important if the insured is the primary breadwinner. The compensation can help the family manage expenses and maintain their standard of living, providing some financial stability during a time of loss.

What is Covered in Personal Accident Cover?

The personal accident cover in bike insurance provides compensation for a range of scenarios resulting from accidents. Here’s a detailed breakdown of what is covered:

• Accidental Death:

In case of accidental death, the cover provides 100% of the sum assured. This compensation helps the family manage the financial impact of losing a loved one, particularly if the insured is the primary income earner.

• Loss of Both Eyesight or Two Limbs:

If an accident results in the loss of both eyesight or two limbs, the cover provides 100% of the sum assured. This high level of compensation is designed to support the insured in adapting to significant changes in their life.

• Loss of One Eyesight or One Limb:

For the loss of one eyesight or one limb, the cover provides 50% of the sum assured. This partial compensation still offers financial support to manage the impact of the loss.

• Permanent Disability:

If an accident causes permanent disability, the cover provides 100% of the sum assured. This compensation helps cover the costs associated with long-term disability and ensures financial security.

The maximum coverage under this policy, as stipulated by the Insurance Regulatory and Development Authority of India (IRDAI), is Rs. 15 lakh.

What is Not Covered in Personal Accident Cover?

While the personal accident cover offers extensive benefits, certain exclusions apply. Understanding these exclusions is essential for managing expectations and ensuring that claims are made under valid circumstances. The following situations are not covered:

• Intoxicants:

Accidents occurring under the influence of alcohol or drugs are not covered. This exclusion is in place to discourage risky behaviour while riding.

• Geographical Restrictions:

Accidents that occur outside the specified geographical area are excluded. It’s important to ensure that you are within the covered area to claim benefits.

• Deliberate Acts:

Injuries resulting from intentional self-harm or criminal acts are not covered. This exclusion helps prevent misuse of the insurance cover.

• Legal Violations:

Accidents caused by violations of traffic laws are excluded. Adhering to traffic rules is crucial for ensuring coverage.

How to Buy a Personal Accident Cover in Bike Insurance?

Purchasing personal accident cover is a straightforward process, especially with the convenience of online platforms. Here’s how you can buy this cover:

1. Research and Compare

Start by researching different bike insurance providers. Compare their offerings, customer reviews, and claim settlement ratios to ensure you choose a reliable insurer.

2. Visit the Insurer’s Website

Once you've chosen a provider, visit their official website. Navigate to the bike insurance section and select the type of policy you're interested in.

3. Select Personal Accident Cover

While customising your policy, you'll be given the option to add riders or additional covers. Choose the personal accident cover. This offers financial compensation in case of accidental death or permanent disability due to a bike accident.

4. Fill in Your Details

Provide the necessary details, such as your bike’s registration number, make and model, and your personal information. Ensure all the information is accurate to avoid complications during claim settlement.

5. Review the Premium

Once you've added the personal accident cover, the premium will be recalculated. Review the total premium amount and the coverage details to ensure it fits within your budget and provides adequate protection.

6. Make the Payment

Proceed to the payment page. You can pay the premium online using various options such as net banking, credit/debit card, or UPI. After successful payment, you will receive the policy document via email.

7. Download and Review the Policy Document

Download the policy document and review it thoroughly. Ensure the personal accident cover is mentioned in the policy, along with the sum insured and other relevant details.

8. Keep a Copy for Records

Save a digital copy and print a hard copy of the policy document for your records. This will be useful during emergencies or while filing a claim.

9. Renew Annually

Remember that personal accident cover needs to be renewed annually along with your bike insurance. Set a reminder to renew your policy on time to avoid any lapse in coverage.

How to Claim PA Cover in Bike Insurance?

Claiming the personal accident cover involves several steps to ensure a smooth process. Here’s a guide to making a claim:

1. Notify Insurer:

Inform the insurer about the accident and the resulting loss as soon as possible. Timely notification is crucial for processing the claim efficiently.

2. File Reports:

Register a First Information Report (FIR) at the local police station and obtain a Final Report (FR). These reports are essential for verifying the details of the accident.

3. Submit Documents:

Upload all required documents online, including medical reports, FIR, and any other relevant paperwork. Ensuring that all documents are in order helps expedite the claim process.

4. Claim Settlement:

Wait for the insurance company to verify the details and process the claim. Once approved, the compensation will be provided as per the policy terms.

Conclusion

Personal accident cover is a critical component of bike insurance, offering essential financial protection against severe accidents. By including this cover in your insurance policy, you ensure that you and your family are safeguarded against the financial implications of accidents. Secure your peace of mind with personal accident cover and protect yourself and your loved ones from unexpected financial burdens.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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