It is mandatory for every car owner in India to insure his or her vehicle with a third-party liability only cover at the least. Based on the type of coverage, there are two kinds of insurance policies available in the market, comprehensive car insurance policy and third-party liability only policy. A comprehensive insurance policy is an extensive insurance policy covering third-party liabilities as well as own damage liabilities at the time of a mishap. A third-party liability insurance policy offers coverage only for third-party liabilities incurred from a mishap.
A personal accident cover is one of the popular add-ons/riders available in the insurance market. You can add this rider to your base insurance policy and enjoy the benefits and features from the same for an additional premium. Under this insurance add-on, you, the owner of the insured vehicle or the driver of the insured vehicle may or may not be covered depending on your employment status. In case a mishap leads to permanent loss of your limbs or arms, you can raise a claim to receive the complete insured amount without any deductions. In case of your unfortunate death, the person you have declared as your nominee in your insurance policy will receive the complete insurance claim amount. However, if you or the driver driving the vehicle at the time of a mishap does not hold a valid driving license, there is a high chance that your insurance claim could be denied by your insurer. In case you have a number of vehicles, you have to insure each one separately with a separate personal accident cover, as this add-on covers only one vehicle.
In some cases, where you have suffered severe injuries or have died an unfortunate death, a few of the insurers offer tax-free compensations. The insured amount is paid either in lump sum or in installments. However, there are certain conditions that you need to fulfill at the time of making a claim to enjoy the benefits of personal accident cover. In case you have undergone serious injuries, you are eligible to receive a higher claim amount depending on the insurance coverage offered by the chosen policy/rider.
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