Passenger Cover In Car Insurance – Protection For Your Loved Ones

Accidents are unpredictable, leading to injuries or fatalities with unforeseen consequences. Third–party car insurance online is mandatory as per the law. The Insurance Regulatory and Development Authority of India (IRDAI) mandates personal accident coverage for the owner-driver in car insurance policies. However, standard policies lack coverage for passengers. To bridge this gap, insurance companies provide a Passenger Cover add-on, offering protection to occupants of the insured vehicle.

Understanding Passenger Cover:

Passenger cover, an optional add-on to car insurance for private and commercial vehicles, fills the passenger coverage gap. While personal accident insurance is mandatory for the owner-driver, this add-on ensures financial protection for passengers, covering medical expenses, demise, or disability in an accident. Claims are subject to terms and conditions set forth under the motor insurance policy. *

Operational Mechanism:

In case of an accident, the standard comprehensive car insurance policy provides financial protection for the owner-driver and the insured vehicle. However, passengers are not covered under the standard policy. Passenger cover operates as an extension, compensating for injuries sustained during travel, mounting or dismounting the vehicle, and in the event of an accident. The coverage scale includes compensation percentages based on the type and severity of injuries.

Scale of Compensation:

• Demise: 100%
• Loss of vision in one eye and one limb or both eyes and two limbs: 100%
• Loss of vision in one limb or eye: 50%
• Permanent impairment from trauma: 100%

Advantages Of Passenger Coverage:

• Medical Expense Coverage: This covers the cost of passengers’ medical care in the event of an accident.
• Death Benefit: Offers monetary support in case of a passenger’s demise.
• Disability Liability Coverage: Provides coverage for disabilities resulting from an accident.
• Reduced Financial Obligations: Lowers the financial responsibilities of the car owner-driver in case of passenger injuries.
• Legal Compliance: If the insured vehicle is a commercial passenger, compliance with legal requirements is ensured.

Exclusions Of Passenger Cover:

• Passenger Leaving The Vehicle: No reimbursement if passengers leave the vehicle during a collision.
• Limit On Private Vehicles: Covers up to three passengers in private vehicles, leaving additional occupants responsible for their medical expenses.
• Self-Inflicted Injuries: Excludes coverage for injuries resulting from deliberate suicide attempts or self-inflicted harm.
• Incidents Under The Influence: This does not cover accidents that occur while the individual is intoxicated by alcohol or drugs.

Filing A Car Accident Passenger Claim: Simple Steps

1. Contact Insurance Company: Inform them about the collision, vehicle damage, and injuries.
2. File FIR: Visit the local police station to file an FIR.
3. Gather Information: Record vehicle and insurance details.
4. Submit Claim: File with the insurance provider; a surveyor assesses damage.
5. Medical Coverage: The insurance covers medical expenses or the agreed-upon amount for passenger injuries in case of demise.

Passenger coverage is a valuable add-on to car insurance policies, addressing financial obligations and providing comprehensive protection for the owner-driver and the insured vehicle’s passengers. You can use a car insurance premium calculator to estimate the costs of premiums to be paid. Understanding the coverage, its benefits, and the claim process ensures a seamless experience in the unfortunate event of an accident. Make sure you do the process of car insurance renewal on time. Claims are subject to terms and conditions set forth under the motor insurance policy. *

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.