Personal accident cover owner driver: the compulsory ₹15 lakh cover explained in simple words. Learn who it covers and where it stops. Get a quote today.
Personal accident (PA) cover for the owner-driver is a compulsory cover of ₹15 lakh. It is part of your vehicle policy, unless you already have a similar cover. It applies to the owner-driver only, not to passengers or a hired driver.
Many people do not know it exists. Here is what it means and how it works.
What is personal accident cover?
Personal accident cover is a type of insurance that gives money support if the owner of the vehicle is hurt or dies in an accident while driving the insured vehicle. It is linked to you as the owner-driver, not to the vehicle.
The compulsory amount is ₹15 lakh. It is added to your motor policy so that your family has some financial support in a serious case.
The exact events and the benefits paid depend on the policy terms. Check your policy wording for details.
Who gets this cover?
This cover applies to the owner-driver only. That means the person who owns the vehicle and is also driving it.
It does not cover:
- Passengers in the vehicle.
- A hired driver or any other driver.
- A person who is not the registered owner.
If you want cover for passengers or other drivers, you need to ask the insurer about separate options. Terms differ by insurer.
When is it compulsory?
PA cover of ₹15 lakh is compulsory unless the owner already has a similar cover. For example, if you have a valid personal accident policy elsewhere, you may not need to buy it again with the motor policy. Insurers may ask for proof of that other cover.
So do not buy it twice without checking. Ask your insurer or advisor how to show your existing cover. You can read our faq page for common questions.
How does it differ from third-party and own damage cover?
Motor insurance has several parts. It helps to keep them apart.
- Third-party cover: pays for injury, death or property damage to another person. Injury or death liability is unlimited, and property damage liability is limited to ₹7.5 lakh.
- Own damage cover: pays for damage to your own vehicle from accident, fire, theft, natural calamities and man-made events, as per terms.
- Personal accident cover: gives a benefit to the owner-driver if they are hurt or die in an accident.
A policy can include all three. A third-party policy alone does not pay for your vehicle. A comprehensive policy covers both third-party and own damage.
What happens if you do not have an active policy?
If your motor policy expires, the vehicle is uninsured from the next minute. This also means the PA cover linked to that policy is not active.
Driving without valid insurance can lead to a fine of ₹2,000 and/or up to 3 months in jail for a first offence. For a repeat offence, it is ₹4,000 and/or up to 3 months (Motor Vehicles (Amendment) Act, 2019). So renew on time. Use our renew vehicle insurance page.
Does PA cover affect your premium or NCB?
PA cover is a separate part of the policy. No Claim Bonus (NCB) is a discount on the own-damage premium for claim-free years, and it does not apply to the third-party part. Check with your insurer how the PA part is shown in your premium. See our no claim bonus page for the NCB basics.
How to make a PA claim
If the owner-driver is hurt in an accident, inform the insurer quickly. Inform the police for a major accident, and for third-party injury or death. Keep medical records, the FIR if made, and your policy copy safe.
Documents usually needed are the RC copy, driving licence, previous policy copy, ID and address proof, claim form, FIR when needed, and bills. In case of death, the nominee or legal heir usually has to send extra papers. Ask the insurer for the exact list.
A claim can be rejected for reasons such as an expired policy, drunk driving, driving without a valid licence, late intimation, or wrong or hidden facts. Our claim support page can help you understand the steps.
Tips for owner-drivers
- Check that your policy shows the PA cover.
- If you already have a similar cover, keep the proof ready.
- Keep your driving licence valid.
- Never drive after drinking.
- Tell the insurer about an accident without delay.
- Read the exclusions in your policy wording.
If you own more than one vehicle, ask how PA cover is treated when you have several policies. For a company-owned vehicle or a fleet, the rules may differ, so ask your insurer.
If you are buying a new vehicle, read about new vehicle insurance. To learn all the basic rules, read our post on motor insurance rules in India. You can also get a quote.
Rules can change. Your policy document is final.
FAQs
Is personal accident cover compulsory?
Yes, for the owner-driver at ₹15 lakh, unless you already have a similar cover.
Does it cover my family members who drive my car?
No. It applies to the owner-driver only. Ask your insurer about separate options for others.
Can I skip it if I have another accident policy?
Usually yes, if the other cover is similar. Your insurer may ask for proof, so check the exact rule.
Does this cover damage to my vehicle?
No. Damage to your vehicle comes under own damage cover. PA cover is for the owner-driver's injury or death.
This guide is for information only. Rules and policy terms can change, and the policy document is final. Please read your policy wording.