The Benefits of Personal Accident Cover in Two-Wheeler Insurance

Although a bike is one of the most preferred mode of commute for an average Indian, in terms of safety, it poses may risks to the rider. The convenience that it offers in traversing peak-hour traffic situations is negated by the alarming bike accident statistics. In spite of this, the sale of two-wheelers in the country is on the rise.

The need to get two-wheelers adequately insured is reinforced by the road accidents that these vehicles are involved in. The Indian Motor Vehicles Act makes it mandatory for all vehicles to be insured with at least a minimum insurance. The basic insurance policy that people purchase to fulfill this is the third-party liability cover. However, this type of insurance only provides you minimal protection, and it is recommended that all riders be covered by a comprehensive insurance policy to tide over unforeseen situations.

Personal Accident Cover

In two-wheeler insurance, a Personal Accident cover offers protection against accidental death or injuries suffered by the rider. Additional cover can be purchased for the pillion rider on an optional basis. The maximum amount that is usually offered as compensation by a Personal Accident cover is Rs.1 lakh when the rider is within the age limit of 18 to 65 years.

Some insurance companies offer this coverage as part of the comprehensive insurance policy. But it is usually that one can opt for when purchasing the main policy. The cover will be available at a minimal premium and can be renewed annually.

Listed below are the key benefits of a Personal Accident cover:

  • Benefit for accidental death - This cover is particularly useful in the case of premature death of the breadwinner of a family in a road accident. An unexpected event such as this could plunge the household into a series of financial liabilities. The Personal Accident cover offers 100% of the total sum assured to protect the family of the policyholder from monetary crisis.
  • Disability compensation - Injuries suffered in accidents can lead to temporary or permanent total disability. This would adversely impact the finances of the policyholder’s family. If the insured suffers permanent total disability in an accident, 100% of the capital sum assured will be provided to his family. The policy also compensates for temporary disabilities and permanent partial disability, up to a certain limit.
  • Hospitalisation cash - If the policyholder is hospitalised due to injuries suffered in a road accident, the policy offers daily cash allowance as hospitalisation charges. This amount can be availed for a maximum of 50 days during hospitalisation.
  • 24 hours claim assistance - Most of the insurance companies that provide this coverage also offer roadside assistance and a helpdesk for claim-related issues, on a 24/7 basis. This makes the claim process quick and hassle-free.

Exclusions Under Personal Accident Cover

The following instances are usually not covered by the Personal Accident rider:

  • Death or injury caused by an accident following the consumption of alcohol or drugs.
  • The death or bodily injury caused by the deliberate act of the policyholder.
  • Injury or death due to violation of law.

In summary, opting for a Personal Accident cover to enhance your two-wheeler insurance policy is a worthwhile investment, as it assures you protection from unexpected events. Most of the Personal Accident riders would include the aforementioned coverage. There may be slight variations in the inclusions and exclusions based on the insurance company and their plan. However, every rider should look to opt for this cover, as it is crucial in protecting his/her loved ones from financial crisis.

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