Owner Driver PA Cover 2024

This add-on Cover is provided to the Owner-Driver whilst driving the vehicle including mounting into/ dismounting from or traveling in the insured vehicle as a co–driver.

This provision deals with Personal Accident cover and only the registered owner in person is entitled to the compulsory cover where he/she holds an effective driving license. Hence compulsory PA cover cannot be granted where a vehicle is owned by a company, 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 compulsory P.A. cover for the owner - driver should 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, compulsory PA cover can be granted for only one vehicle as opted by him/her.

Compulsory Personal Accident Cover shall be applicable under both Liability only and Package policies. The owner of insured vehicle holding an ‘effective’ driving license is termed as Owner-Driver for the purposes of this section.

What is Owner Driver PA Cover?

If you are a car owner with a valid driving license, it is compulsory for you to have Personal Accident Coverage under your car insurance policy. It gives you coverage in case of an unfortunate demise or total permanent disability caused in direct relation to the vehicle registered to your name.

Note: The insurance amount is payable to the policyholder or his/her legal heir only. No other person can raise a claim even if they were deemed owner and happened to be driving the car at the time of the accident.

Advantages of Owner-Driver Cover in Car Insurance:

• In the event of accidental death of the owner-driver, the nominee shall receive 100% of the sum insured.
• In case of permanent disability, the insured shall receive 100% of the sum insured.
• If the owner-driver loses both limbs/sight of both eyes/sight of one eye and one limb, the insured shall receive 100% of the sum insured.
• If the owner-driver loses sight of one limb/one eye, the insured shall receive 50% of the sum insured.
• With additional premium, the insured shall receive the sum insured for your paid driver/cleaner/conductor as well as Unnamed Passenger .

What is Compulsory PA Cover for Owner Driver?

A compulsory Personal Accident Cover is an insurance policy that offers you (owner-driver) protection against disability or death caused due to an accident. The owner-driver PA cover is a mandatory cover in addition to your car insurance policy. The car insurance policy protects your car, whereas the PA cover protects you. It reimburses your medical costs or offers compensation in case of death or disability caused by accidents.

For example, Mr A’s car was hit by a speeding truck that resulted in damages to his car and he sustained severe injuries, including a fractured leg. The doctors advised a complete bed rest until he recovered completely. He has to be off work for a month. However, Mr. A was calm without much to worry about. While his injury hurt a lot, he wasn’t concerned since he had taken the compulsory PA cover for owner-driver.

• Owner driver personal accident (PA) cover is a comprehensive insurance policy tailored to cater to the unique needs of self-employed drivers and their nominated beneficiaries.
• This coverage ensures that both the registered owner of the vehicle and their designated nominee are safeguarded against unforeseen events.
• In the unfortunate event of permanent disablement resulting from an accident, the owner driver PA cover steps in to provide compensation to the affected party.
• Whether it's the owner driver themselves or their nominee, the policy offers financial support during challenging times, helping them maintain their quality of life and meet essential expenses.

This insurance goes beyond conventional accident policies by acknowledging the symbiotic relationship between a vehicle and its driver. The policy takes into account the crucial role of the owner driver, recognizing that their livelihood is closely intertwined with the functionality of their vehicle. Therefore, in case of an accident resulting in disability, the policy not only ensures compensation but also acknowledges the emotional and financial toll such incidents can take. With the owner driver PA cover, peace of mind comes not just from knowing that medical expenses will be covered, but also from the assurance that one's chosen nominee will be taken care of, should the unforeseen occur.

Why Owner Driver PA Cover is Important?

This cover gives compensation as per the following scale for bodily injury/ death sustained by the owner-driver of the vehicle in direct connection with the vehicle insured or whilst mounting into/dismounting from or traveling in the insured vehicle as a co-driver, caused by violent accidental external and visible means which independent of any other cause shall within six calendar months of such injury result in:

Who should opt this Cover?

• The owner-driver is the registered owner of the vehicle insured
• The owner-driver is the insured named in this Policy.
• The owner-driver holds an effective driving license, in accordance with the provisions of Rule 3 of the Central Motor Vehicles Rules, 1989, at the time of the accident.

Exclusions:

• No compensation shall be payable in respect of death or bodily injury directly or indirectly wholly or in part arising or resulting from or traceable to
• Intentional self-injury suicide or attempted suicide physical defect or infirmity or
• An accident happening whilst such person is under the influence of intoxicating liquor or drugs.

How Owner Driver Personal Accident Cover Work?

The Insurance Regulatory and Development Authority of India (IRDAI) has released a circular stating that insurers cannot force individuals to buy multi-year personal accidental (PA) insurance.

This means that vehicle owners can now choose the tenure of their PA cover under the motor insurance policy. They can even buy one-year PA plan, if they wish to. Earlier this year in September, IRDAI had directed insurers to provide personal accident cover of Rs. 15 lakh for the owner drivers of the vehicle under the motor insurance policy following the Madras High Court order. Previously, the mandatory cover was Rs. 2 lakh for cars and Rs. 1 lakh for two-wheeler owners.

This mandatory cover has added to the overall cost of third-party insurance and hence, contributed to the increase in price for buying new vehicles or renewal of existing policies. A premium of Rs. 750 per annum is to be applicable for Rs. 15 lakh PA cover, a significant jump from earlier premiums which was Rs. 100 for cars and Rs. 50 for two-wheelers.

Due to the increase in the sum assured for personal accidental cover, all vehicle owners and drivers are now eligible for enhanced insurance benefits against death or complete permanent disability. General insurers are required to provide it, both for third-party liability cover as well as comprehensive car insurance plans.

Is Owner Driver PA Cover Mandatory?

In India, it is mandatory for all cars owners to own a personal accident cover. This cover needs to be purchased irrespective of whether you are buying a third-party liability-only policy or comprehensive policy for your car. If you don’t own a PA cover under your car insurance, you will be liable for legal action under the law of the country.

The whole idea behind a PA cover is to ensure that all car owners are covered against personal accidents up to the minimum mandated coverage limit. As per the India Motor Tariff 2002, personal accident cover is issued compulsorily with every car insurance policy. Therefore, it is granted as part of the comprehensive policy as well as the third-party liability-only policy.

In the context of vehicle insurance, the term "sight of the owner driver, the nominee, and registered owner" refers to the established procedure where the insurance provider requires visual verification of the authorized owner and driver, as well as the appointed nominee, in order to validate the policy terms. This verification ensures that the rightful individuals are covered under the insurance policy.

Additionally, the policy may outline provisions for "compensation in case of permanent disablement," offering financial support in the unfortunate event that the owner driver experiences a lasting disability due to an accident. The involvement of the nominee becomes significant in such cases, as they are designated to receive the compensation on behalf of the owner driver in the event of an accident resulting in permanent disablement. It is essential to understand these aspects to ensure a clear understanding of the insurance coverage and the necessary steps to take in the event of such incidents involving the owner driver and the nominee.

Reasons Why One Must Get an Owner driver Personal Accident Cover:

Every owner-driver must make sure to have at least a basic coverage for personal accidents. Every day, a lot many accidents take place on roads. Therefore, everyone should get them insured against any mishap. Here are some of the coverages you would get if you hold a PA cover policy.

• Accidental Deaths
• Physical disabilities
• Permanent disability
• Partial disabilities.

It is mandatory to take third-party and personal accident covers as part of your motor insurance for any plying vehicle. Owing to the mandatory nature of a personal accident cover, it came bundled with motor insurance. For you, this meant bringing home the bundled personal accident cover even when you bought a second car . Buying the same cover more than once just adds to the cost, and the regulator too realized this.

It simply means that you don’t have to compulsorily buy personal accident cover every time you take motor insurance for any new car that you buy in addition to an existing vehicle. If you already have a personal accident policy and the minimum mandated cover as part of the motor insurance of your first vehicle, you don’t have to buy it again when buying motor insurance for your second vehicle.

How to Claim Owner Driver Personal Accident Cover?

The claim under the Personal Accident Policy-a part of Motor Insurance can be claimed by the owner-driver or nominee of the respective four-wheeler or two-wheeler. The policy’s aim it that the nominee or the surviving owner fetches the maximum benefits (as mentioned in the policy).

To retrieve benefits of the PA cover during an accident where the owner-driver has been injured, one needs to file a claim. Following are the instructions to make one:

1. Intimate the insurer about the incidence and resulting loss.
2. Ask for an FIR followed by FR. It will be one of the most important documents needed for processing the claim. If possible, arrange for the witnesses who can approve of the occurrence of a claim.
3. Complete the formalities with the insurer that includes filling the claim form, provide photographs of the car accident (if applicable). In case of Digit, all these processes can be easily completed on our app, online.
4. Submit all the documents online and wait for the insurers to verify the details.

In the eventuality of death of the owner-driver, the nominee will file the claim. She/he will be awarded the claim amount as per the policy.

How to Buy/Renew an Owner-Driver PA Cover in Car Insurance?

Car insurance can be purchased online from the PolicyBachat portal in two easy steps. At PolicyBachat we cater unbiased comparison of quotes, a 24*7 customer assistance team your motive is to give our customers the right quotes with compare car insurance rates online.

You have the option to purchase this cover via the online mode or the offline mode while buying or renewing your car insurance policy. You can buy a Cover by following the below mentioned steps.

• Go to compare car insurance quotes online at PolicyBachat.com
• Fill in the required details and select your Car Model & Variant, RTO Location, Registration date, and Email address.
• Click on the “START SAVING MONEY”.
• Choose a Comprehensive Insurance plan.
• Premiums with different insurance companies are displayed with low premiums.
• Select the Owner Driver PA Cover from the available Add-ons
• After that fill in the ‘vehicle owner details and personal details.
• Purchase the best Car Insurance Policy using online payment
• If any queries are raised call: 1800–123–4003.

Top Companies that Offer Owner Driver PA Cover in Car Insurance Policy:

Conclusion:

Personal accident cover is mandatory for owner-drivers. But covering the passengers and/or other drivers involves different options. One option is to pay an extra premium and add the driver to your accident cover.

In this case, only the diver listed under your policy can claim the financial benefits from an accident. If the car is driven by some other driver during the accident and the person is not under your policy, he/she cannot claim any benefit.

The owner-drivers also have the option of a cover over and above Rs. 15 lakh on payment of a higher premium. For CPA cover under long-term motor policies, insurers may fix the premium in line with their current pricing methodology.