Personal accident cover in bike insurance is essentially an add-on cover that you can choose at the time of purchase of a two-wheeler insurance plan by paying a nominal additional premium.
Personal accident cover in bike insurance protects against the cost of treatment of injuries that you sustain as a result of an accident involving your two-wheeler. In addition to that, it also covers a whole lot of other scenarios such as permanent partial or total disability.
The maximum amount of coverage offered by the personal accident cover is capped at Rs. 15 lakhs.
Getting personal accident insurance for two-wheelers is crucial. Why? Simply because two-wheelers are generally less safe than four-wheelers. And during an accident or a mishap, your two-wheeler and third parties wouldn’t be the only ones to get injured. Chances are that you, the rider, are likely to suffer injuries too.
Imagine yourself driving down a street. You stop at an intersection to allow a couple of individuals to cross the road. However, a car that was travelling behind you failed to notice you stop and hit you straight on.
Such an accident can leave you with several injuries or even a disability, which may need to be treated at a hospital, the cost of which may need to be borne by you out of your own pocket. And considering the cost of medical treatment in India and the nature and extent of injuries that you suffer, you may have to shell out a significant amount of money to get yourself treated.
A typical two-wheeler insurance plan will unfortunately not cover these costs. They cover only third party damages and damages to the vehicle arising out of an accident, mishap, or calamity.
In such a scenario, what do you do? Here’s where the personal accident (PA) cover in bike insurance comes into the picture. Personal accident cover in bike insurance covers the costs associated with treating your injuries or disability, minimising or eliminating any and all financial impact.
Wondering whether the personal accident cover in bike insurance is mandatory? Here’s something that can help give you some clarity.
The Government of India, taking cognisance of the number of accidents involving two-wheelers, made it mandatory to have a personal accident insurance for two-wheelers. This means that whenever you purchase a third-party bike insurance or a comprehensive bike insurance plan, a PA cover for owner-driver of two-wheelers will be automatically applied.
However, from January, 2019, the Government of India brought in a couple of changes to the mandatory policy of purchasing a PA cover along with two-wheeler insurance. Let’s take a look at what they are:
1. If the owner of the two-wheeler already has a standalone personal accident insurance of Rs. 15 lakhs or more, they can opt out of purchasing the personal accident cover in bike insurance along with their two-wheeler insurance.
2. If the owner of the two-wheeler already has a PA cover under an existing four or two-wheeler insurance policy, they can opt out of purchasing the PA cover under a two-wheeler insurance for a new vehicle.
Now that you’re aware of what personal accident cover in bike insurance is, let’s move on and find out what it covers and what it doesn’t. This way, you would be able to make a more informed decision.
Death due to an accident
Permanent partial disability such as the loss of one eye or one limb as a result of an accident
Permanent disabilities such as the loss of both eyes, both limbs, or the loss of one eye and one limb as a result of an accident
Permanent total disabilities due to an accident
In the case of death, loss of both eyes, loss of both limbs, loss of one eye and one limb, and permanent total disabilities, the entire sum assured of Rs. 15 lakhs would be paid out.
In the case of permanent partial disability such as the loss of one eye or one limb, only 50% of the sum assured would be paid out.
Injuries or death due to an accident arising out of riding under the influence of alcohol or drugs
Injuries or death due to an accident arising out of the insured geographical area
Injuries or death due to an accident deliberately caused by the policyholder
Injuries or death due to an accident arising out of violation of laws
The PA cover in bike insurance is a great way to ensure financial protection from liabilities arising out of bodily injuries caused due to an accident. And in the case of accidental death, the payout goes directly to the family of the deceased policyholder, which they can use to cover their living expenses.
However, you only get the benefits of the PA cover if you renew your two-wheeler insurance plan on time. So, make sure to do it in a timely fashion.
If you wish to take a look at the different kinds of two-wheeler insurance plans available for your vehicle, just head to the Bajaj Markets website. It is an online marketplace where you can find various two-wheeler insurance plans from multiple service providers. That’s not all. You can even compare the quotes and pick the one that you’re comfortable with.
Yes, purchasing a PA cover along with a two-wheeler insurance plan is compulsory as per the Motor Vehicles Act of 1988.
The maximum coverage offered by a PA cover is Rs. 15 lakhs.
Yes, the PA cover is only applicable to owner-drivers and not to any other individuals driving the two-wheeler at the time of accident.
The payout will be limited to just 50% of the total sum assured, which would be Rs. 7.5 lakhs.
No. In such a case, you don’t have to avail a PA cover for the new bike that you purchase.