An accident can happen at any time. The worst part is that, it doesn’t even need to be your fault! You could be driving extremely safely and due to someone else’s negligence, you could still end-up being involved in a mishap. Such an incident could cause extensive damage to your vehicle, and worse yet, physical injuries to you & your co-passengers. Though you cannot predict when such an event will occur, you can surely take safety precaution to minimize the effects of the same.
In regards to your car, you could install safety features such as ABS, proximity warning systems, etc. To safeguard yourself from injuries you can install airbags, drive safely & always wear your seat belt. But when it comes to protection from the financial costs of an accident – all you need is car insurance!
All plans should provide you cover from accidents, theft and natural/man-made calamities. They will compensate you for damages or total loss of your vehicle arising due to such incidents. However, did you know that, your motor insurance policy also provides compensation for injuries that occur during the accident? In fact, motor insurance policies provide not 1, not 2, not 3 but different 4 types of accident covers for injuries – we will be detailing them all so you know what to expect when buying an insurance policy for your car.
1. Third party accident cover.
This is a mandatory cover that all insurance companies will provide with a third party cover. This element of a third party insurance policy ensures that the financial aspects of injuries occurring to a third party due to an accident in which you are at fault are taken care off. There is no limit on the amount of compensation the third party will receive as the claims tribunal court will decide a fair amount and the insurance company will be liable to pay it.
2. Personal accident cover.
Personal accident cover has been the news off-late. This is because, the IRDAI introduced a mandate that all new car insurance plans come with an increased PAC of Rs. 15 lakh (it was earlier only Rs. 2lakh). The amount of compensation you receive depends on the extent of your injuries – remember to ask your insurance company about this.
3. Paid driver cover.
A lot of us have drivers, and in case of an accident, you are liable to pay your driver in case of an accident in which he/she is injured. This is because, under the Workmen Compensation Act, one is liable to compensate employees in case of injury or accident while at work. However, you can get peace of mind form this liability by opting for the ‘Accident cover for paid driver’ add-on.
4. Accident covers for other occupants of the car.
All occupants are in danger of injuries in an accident, but even comprehensive plans usually do not provide compensation for injuries occurring to occupants of the car as they are not named in the policy. However, you can change this by purchasing the ‘Personal Accident cover for Unnamed Passengers’ add-on.
So if you are going to buy or renew a car insurance policy anytime soon, it makes sense to enquire about these accident covers. Check which one are provided by your plan and which ones you need to purchase. We hope this article has been helpful. Good luck and drive safe!