Motor Insurance vs. Personal Accident Insurance

As per the Motor Vehicles Act, 1988, third-party insurance is mandatory. This insurance covers damages to third-party life or property in case of an accident. Most motor insurance plans come with a personal accident (PA) cover in your name if you are the owner.

The PA cover takes care of demise, permanent disability, or bodily injuries resulting from an accident. The maximum limit as prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) is INR 15 lakh.

Personal accident health insurance

Accidents do not always involve vehicles. You may fall down the stairs or may burn yourself in a fire. Such an accident can cause severe injuries that may disrupt your life. A personal accident insurance plan offers financial protection for fatal accidents.

It is important to provide financial security to your family from huge medical bills, disabilities, and property damage due to an accident. The coverage offered by PA health insurance includes:

  • Accidental death, partial, or permanent disability
  • Education and orphan benefits for dependent children
  • Repair or modification of property or vehicle damaged in an accident
  • Protection against equated monthly installments (EMIs) on your loans

Comparison between PA insurance and PA cover with motor insurance

Often, you may confuse between a regular PA cashless health insurance plan and the PA coverage available with motor insurance. Here are the basic differences between the two:

  PA insurance PA cover with motor insurance
Accident Covers all kinds of accidents Covers only vehicular accidents
Benefits Death, permanent total, or partial disablement Death, permanent disability
Covered members Self, spouse, children, parents, and in-laws Only for self (if you are the owner)
Eligibility Minimum age: 5 years

Maximum age: 65 years

Available only if you own a valid license

Why is PA insurance required?

  1. Income protection

If you are disabled or severely injured in an accident, you may be unable to continue working. A PA medical insurance protects your family against the loss of such income, which is crucial especially if you are the sole earning member.

  1. Wider coverage

In addition to accidental death and disability benefits, this kind of insurance plan offers several other covers. These include education benefits, orphan benefits, repatriation of mortal remains, and compassionate visit.

  1. Noclaim bonus (NCB)

For every claim-free year, PA mediclaim plan offers a 5% NCB. The maximum accumulated NCB is capped at 50% of the sum insured (SI).

You may purchase the PA cover directly from the insurer’s website. Just submit some basic information to receive a quote. The entire procedure is simple, quick, and completes within a few days.

Avail of a PA insurance plan today and live tension-free.

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