When you buy car insurance online, you are ensured of keeping your vehicle financially safe and protected at all times. If an accident takes place, the insurance provider will assist you financially to get the vehicle repaired. But what happens to you? What happens if you are badly injured, or worse dead, in a road accident? Who helps you and your loved ones at such a time? Thankfully, a car insurance covers such risks. You just need a good car insurance cover in place. An important component of car insurance is an accident cover. You, or your family in the instance of your death, get a sum assured if you are permanently disabled or dead in a road mishap.
Understanding accident cover in car insurance
When you get car insurance online, you get a basic plan. If you buy a third party car insurance cover, you get a third party protection cover. Apart from this, you also get a mandatory personal accident cover. The insurance provider promises to compensate you if a physical injury is bad enough to cause disability or death. If you buy a comprehensive cover, you get protection for your own vehicle too.
Accident cover pay outs
The accident cover on your motor insurance plan would kick into action if there is:
- Permanent disability: If the accident leaves you in a permanent state of disability, you will receive a pre-decided sum assured. You can use this amount to set up a fund, clear bills, pay for your treatment, etc.
- Accidental death: In the unfortunate case of your demise in a road accident, your nominees will get a pre-decided sum assured. This is again a fixed number.
These are the two ways in which you and your family can benefit from the accident cover benefit in car insurance online.
The IRDAI, on September 20, 2018, has directed the insurance companies to offer a minimum Personal Accident cover of Rs. 15 lakhs to the owner-driven vehicles. The premium for this will stand at Rs 750. This is a major change and upgrade as previously; the personal accident cover was limited to Rs 2 Lacs.
Another ruling that was also recently announced is that a single vehicle owner will not have to buy two separate personal accident covers if he has more than one vehicle. If you already have personal accident cover with an existing car insurance plan, that will be sufficient to cover you for the motor-related road accidents.
After an announcement made on the first day of 2019, the IRDAI has unbundled the compulsory personal accident (CPA) coverage. It has made an allowance for the buying of stand-alone vehicle plans. This is helpful as it can help ease out the expenses of owning a motor car.
Let us understand how this happens. Earlier, you had to pay a yearly premium of Rs. 750 for the CPA for both vehicles. After the announcement, this entire sum can be saved if a policyholder at present owns a standalone personal accident cover.
The bottom line
It is vital for you to have a car insurance plan. This is important not just to protect your vehicle, but also to protect yourself and your near and dear ones. Buy a good car insurance plan and also renew it on time. Don’t allow your policy to lapse. You cannot make any claim on a car plan that has expired. Trouble doesn’t come knocking and you never know what your fortune holds. So, stay covered in an uninterrupted fashion and you will get all the assistance you need from your insurer.