Why You Should opt for Personal Accident Cover in Two-Wheeler Insurance

Posted on: Apr 14, 2023 | | Written by:

Why You Should opt for Personal Accident Cover in Two-Wheeler Insurance

Published on April 14, 2023. EST READ TIME: 3 minutes

The statistics look a bit gloomy when we consider the number of road accidents in India. It is even more disheartening when it comes to two-wheelers. During the year 2021, two-wheeler accidents were the result in 69,240 deaths in the country. And that is an alarming number. Though a lot of individuals now opt for bike insurance policies, complementing it with personal accident cover can be a smart choice.

The 69,240 deaths in 2021 due to bike accidents is about 44.5% of the total number of deaths due to road accidents. And it is an alarming number. Deaths due to accidents in cars stood at 23,531, or 15.1% of the total deaths. And lorries or trucks account for 14,622 deaths, or 9.4% of the total deaths. Though your own damage bike insurance plan can protect your bike against damages, it might not be enough to keep you safe. Given the constant uptick in the number of two-wheelers in the country, opting for a personal accident cover can be a sensible decision. Here is all that you need to know about PA cover.

What does personal accident insurance mean?

Personal accident insurance is a type of insurance cover that you can opt for with your bike insurance policy. The policy offers compensation to the insured or dependents of the insured in the event of an accident. If there are any injuries, disabilities, or even death, the policy will offer compensation.

You can also choose a personal accident cover for an unnamed pillion rider, by paying a small premium. The maximum compensation in such cases is limited to Rs. 1 lakh, and the rider should be within the age range of 18 to 65 years.

Depending on the insurance provider that you choose, some might even offer this cover along with a comprehensive bike insurance plan.

Alternatively, if you already have a stand-alone personal accident cover with a sum insured of Rs. 15 lakhs or above, you can choose not to buy PA cover with your bike insurance policy.

What are the benefits of buying a personal accident cover?

Opting for personal accident cover in bike insurance can be crucial since accidents come unannounced. There are a few benefits of choosing the plan, and the following are some of them.

1. The accidental death of the insured

The worse possible outcome of an accident is the death of the insured. The loss of a person stands to none. And it can be even more damaging if the person happens to be the only bread earner of the family.

In the event of an accident that results in the death of the insured, the insurance provider will compensate the nominees of the policy with the entire sum insured. The family members of the insured can use the funds to keep away from financial perils.

2. Disability due to an accident

There can be a lot of possible consequences of an accident. It can range from a minor scratch or bruise to something more serious such as loss of a limb or, in extreme cases, death. Since there is very little protection when it comes to two-wheelers, the chances of an accident resulting in some form of disability are high.

In some of the more serious accidents, the insured might suffer from partial or complete disabilities. And this can heavily impact the earning capability of the insured. The lack of personal accident insurance can hurt the finances of the family, quite considerably.

On the other hand, personal accident insurance ensures that the insured is compensated due to disability. In case of partial disabilities, the compensation can be up to 50% of the sum insured on the policy. And for permanent disabilities, the policy will compensate the insured with 100% of the sum insured.

3. Medical expenses

A lot of bike accidents usually result in minor bruises or injuries. If the insured suffers from any such injury due to a bike accident, the personal accident cover in bike insurance will cover the medical expenses. The compensation is usually a specified percentage of the sum insured, and it is paid as a lump sum amount.

Thus, allowing the insured to focus on total recovery rather than worrying about the medical expenses.

Exclusions of personal accident insurance

As is the case with any other insurance policy, personal accident insurance also has some exclusions. In other words, these are the conditions where the insurance provider will not honour a claim filed by you. Here are some of the exclusions.

1. If the insured meets with an accident while being under the influence of alcohol or drugs.

2. If the insured loses his or her life or is severely injured due to violating traffic rules and regulations.

3. If the insured deliberately meets with an accident or is an attempt to suicide.

4. If the insured meets with an accident without having a valid driving licence or isn’t the registered owner of the bike.

Benefits of choosing a bike insurance policy

Apart from the above benefits of personal accident coverage, choosing a bike insurance policy offers several other benefits. following are some of the most prominent ones.

1. Mandated by the law

The Motor Vehicles Act of 1988 mandates all vehicle owners to always have insurance on them. It will safeguard the bike owner against any unforeseen events and keep them away from a hefty penalty as well.

2. Pays for repair bills

Anyone who has repaired a bike would know that the cost of repairs can creep up rapidly since the parts are closely connected. And the repair bills after an accident can easily dent your finances. Not if you have own damage bike insurance cover. The coverage ensures that the insurance provider will compensate for the cost of repairs.

3. Liabilities

During an accident that involves other individuals or vehicles, the financial and legal liabilities are entirely on you. However, having a third-party liability policy will ensure that you no longer need to worry about these.

4. Theft

If your bike gets stolen and even the police are unable to recover it, the insurance provider will compensate you with the price of the bike. They usually consider the IDV or insured declared value of the bike for the compensation, which is the current market value of your bike.

5. Natural calamities

Since the occurrences of natural calamities have gone up over the past few years, having comprehensive bike insurance is even more important. The plan will protect your bike in the event of damages incurred due to such calamities.

Conclusion

The presence of a personal accident cover in bike insurance can prove to be quite critical in a lot of cases. If the accident results in a lot of injuries or the worst case, death, the policy will offer compensation. Buying a comprehensive bike insurance policy will make sure that you and your bike receive adequate coverage without any compromises.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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