What is Personal Accident Cover? Does it Cover Multiple Accidents?

Life can throw curveballs, and accidents can happen anywhere, anytime. An accident can result in the death of the insured or cause physical injuries that may land the person in the hospital, where treatment may continue for days. In the absence of health insurance, such accidents can lead to significant financial hardship. This is where having personal accident cover can save the day. However, people often wonder if this policy can cover multiple accidents. Let’s explore this question in more detail.

What is Personal Accident Cover?

Personal Accident (PA) Cover is a type of insurance policy that provides financial assistance to the insured in the event of death, bodily injuries, or disability caused by an accident. The PA cover is mandatory for the registered owner-driver in India, with a minimum sum insured of INR 15 lakhs. The IRDAI has fixed the premium at INR 750 per annum. You can purchase it along with comprehensive or third-party liability insurance.

Decoding Health Insurance & Personal Accident Insurance

Some may argue that they already have health insurance and, therefore, don’t need a Personal Accident Cover. While a health plan will take care of medical expenses, what if the injury leads to disability or death? A PA cover provides compensation in such cases. It is an add-on cover that you can purchase along with your health plan or auto insurance policy.

Will Personal Accident Insurance Cover Multiple Accidents?

Yes, personal accident insurance covers multiple accidents within the policy period. However, you should remember that the policy will have an upper limit, and the insurer will pay only up to the specified sum insured. Additionally, not all claims are approved. For example, claims filed after the stipulated timeframe may be rejected. Therefore, it is essential to file a claim within 30 days of the insured person’s discharge from the hospital or the completion of treatment. Be sure to carefully read the terms and conditions before purchasing the cover.

Do You Need Separate PA Cover for Multiple Vehicles?

No, separate PA covers are unnecessary if you own multiple vehicles. According to IRDAI regulations, effective from January 2019, a single PA policy is sufficient. This is because the PA cover is associated with you as an individual, not your vehicles. The minimum sum insured must be INR 15 lakhs, with a fixed premium of INR 750.

What is Covered in PA Cover?

The coverage provided under a Personal Accident policy includes:
•    In the case of accidental death of the owner-driver, the nominee will receive 100% of the sum insured.
•    If the insured suffers permanent total disability, they will receive 100% of the sum insured as compensation.
•    If the insured loses one limb or vision in one eye in an accident, they will receive 50% of the sum insured.
•    If the insured loses both limbs or eyes, or one limb and one eye, they will receive 100% of the sum insured.

What is Not Covered in PA Cover?

The Personal Accident cover excludes coverage for injuries or death caused by the following reasons:
1.    Death, disability, or injuries sustained due to suicide, suicide attempts, or self-inflicted injuries.
2.    Participation in hazardous or adventure sports, such as scuba diving, skiing, bungee jumping, mountaineering, etc.
3.    Pre-existing disabilities or accidental injuries.
4.    Participation in activities not covered under the policy.
5.    Accidental injuries or disabilities resulting from mental illness, such as stress, anxiety, or depression.
6.    Injuries or death caused by acts of war or terrorism.
7.    Pregnancy and childbirth.
8.    Injuries or disabilities caused by alcohol or drugs.

What’s covered and what’s not covered under a personal accident cover may vary from insurer to insurer too, hence, always read your policy document carefully to understand. 

Conclusion

Personal Accident Cover is mandatory for all vehicle owners in India, even if you have third-party liability insurance or comprehensive motor insurance. It offers peace of mind by safeguarding the insured in the event of death, disability, or injury due to an unfortunate accident. However, you should be aware of the contingencies not covered under the policy. It’s crucial to read the policy’s terms and conditions to avoid any unpleasant surprises when filing claims.