Is Personal Accident Cover Mandatory for Bike Insurance in India?

Understanding PA Cover in Bike Insurance: A Significant Add-on Cover

Personal Accident (PA) cover is an essential add-on cover of a bike insurance policy that provides financial compensation in the event of an accident resulting in injuries, disabilities, or death of the policyholder. It's a safety net for you and your family during tough times. PA cover typically covers accidental death, permanent total disability, permanent partial disability, and even temporary total disability, offering comprehensive protection for riders.

Is Personal Accident Cover a Mandatory Bike Insurance Add-on?

As per the Indian Motor Vehicle Act, buying Personal Accident cover in a bike insurance policy is not just an option; it is a legal requirement. Moreover, this can be bought with all types of bike insurance policy, i.e. third-party bike insurance policy, own-damage bike insurance policy, and comprehensive bike insurance policy. This mandatory add-on ensures that riders have financial protection in case of accidents, providing coverage for medical expenses, disabilities, or fatalities resulting from accidents.

How Much Coverage Does Personal Accident (PA) Bike Insurance ?

The IRDAI mandates coverage of up to ₹ 15 lakhs under Personal Accident (PA) cover. This amount is payable in case of accidental death or disabilities of the owner/rider. While the coverage amount may vary depending on the type of injury, the predetermined coverage amount ensures that policyholders have adequate financial protection.

What PA Cover Offers?

A typical PA cover in bike insurance protects the following instances:

• Accidental Death Benefit: The entire sum insured will be provided to the nominee if the policyholder dies in a bike accident.
• Permanent Total Disability Benefit: 100% compensation offered to the policyholder in case of permanent and total disability, such as losing sight of both eyes & losing two limbs or sight of one eye & one limb due to a bike accident.
• Partial Disability Benefit: 50% compensation is offered to policyholders with partial disabilities, such as those who lose sight of one eye or a limb.

Benefits of Personal Accident (PA) Cover

The following are the benefits associated with the personal accident cover in bike insurance:

• Financial Security in Uncertain Times: PA cover offers a crucial financial safety net, providing peace of mind knowing you are protected from the unexpected costs of accidents, including medical bills, lost income, and rehabilitation.
• Family's Financial Safety Net: In the unfortunate event of a fatal accident, the PA cover payout offers vital financial security for your family.
• Affordable Peace of Mind: The premium for PA cover is generally relatively low, especially when bundled with a two-wheeler insurance policy. Use a bike insurance premium calculator to see how adding PA cover affects the overall cost. Hence, it is an affordable deal.
• Complete Protection: While third-party bike insurance covers others, PA cover protects the rider. This is a critical distinction often overlooked by most people.

Other Bike Insurance Add-Ons for Enhanced Protection

While the mandatory PA cover provides a substantial level of protection, policyholders have the option to enhance their coverage with other bike insurance add-ons covers. These add-ons can include pillion rider cover, roadside assistance cover, etc. These optional add-ons offer a more comprehensive protection plan, catering to the specific needs of the rider.

Final Words!

The law mandates compulsory PA coverage for bike insurance in the same way as third-party bike insurance coverage. It offers crucial financial protection for you and your family in the event of an accident. However, choosing a comprehensive bike insurance policy along with a PA cover is the most sensible and prudent approach to ensure complete protection on the road. When renewing or purchasing two-wheeler insurance, do not overlook the significance of PA coverage. It is a small price to pay for significant peace of mind. Also, do not buy a separate PA cover if you already have a personal accident policy with your existing vehicle.