Auto insurance add ons!

by BankBazaar.com Desk on 17, May, 2012   0 |

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Apart from the Loss to Vehicle and Third Party Cover, all insurance companies offer add-ons to the policy. These add-ons come at an extra premium and will give you extra cover.

The most common add-ons are:

1. Personal Accident Cover For Owner Driver (PA)

This provision deals with Personal Accident cover and only the registered owner in person is entitled to this cover where he/she holds an effective driving license.  The extra cost is usually around Rs 100 for a maximum cover of 200,000/-

Hence Personal Accident cover cannot be granted where a vehicle is owned by a company, a partnership firm or a similar body corporate or where the owner-driver does not hold an effective driving license.

In all such cases, where compulsory PA cover cannot be granted, the additional premium for the cover for the owner – driver will not be charged and the compulsory P. A. cover provision in the policy should also be deleted. Where the owner-driver owns more than one vehicle, PA cover can be granted for only one vehicle as opted by him/her.

Nature of Injury	Scope of PA Compensation
1. Death	100%
2. Loss of two limbs or sight of two eyes or one limb and sight of  one eye	100%
3. Loss of one limb or sight of one eye	50%
4. Permanent total disablement from injuries other than named above	100%

The maximum limit is Rs 200000 for private car provided always that

1. Compensation shall be payable under only one of the items (1) and (4) above in respect of the owner driver arising out of any one occurrence. That is to say that a claimant cannot claim twice. Once for Loss of limb and other for permanent disablement.

1. No compensation shall be payable in respect of death or bodily injury resulting due to

1. 1. Intentional self injury or attempted suicide
   2. Under the influence of intoxicating liquor or drugs

2. Personal Accident Cover to the insured or any named person other than paid driver or cleaner

3. Personal Accident Cover to unnamed passenger other than insured and the paid driver and cleaner

4. Personal Accident Cover to paid driver

The above category of people can be covered for any Personal accident upto a maximum of Rs 200,000. The cover is applicable only to a maximum of the number of seating capacity of vehicle.

Nature of Injury	Scope of Compensation
1. Death	100%
2. Loss of two limbs or sight of two eyes or one limb and sight of  one eye	100%
3. Loss of one limb or sight of one eye	50%
4. Permanent total disablement from injuries other than named above	100%

Conclusion: Before buying insurance for your vehicle it is advisable to discuss the above subjects with the agent and get a proper written quotation from the insurer.

Note – It’s always better to get the quotation from insurer rather from any intermediary or service provider.  File the quotation and check the policy document and reassure all the covers are mentioned in the document. This will help us avoid any surprises when faced with a situation where we need to claim.