Personal Accident Cover in Bike Insurance – Forbes Advisor INDIA

Riding a two-wheeler has become a daily commuting convenience for many people in today’s fast-paced society. Unfortunately, because of careless driving and bad road conditions, there is also a risk of accidents. 

While bike insurance covers damage to the motorcycle, personal accident insurance helps shield the rider and their family financially from losses brought on by accidents that result in injuries or even death. 

One of the most crucial add-on insurance plans for motorcyclists, it guarantees that even in the event of a medical emergency or other adversity, the insured person’s and their family’s welfare is maintained. 

The goal of this article is to give a thorough overview of the personal accident coverage offered by bike insurance policies in India, including what is covered, how much it costs, how the claims process works, and important things to think about before choosing a suitable level of protection.

Read more about: Best Bike Insurance in India

Importance of Personal Accident Cover

Road accidents are among the most undesirable and unexpected incidents in India. Potholes, degraded roads, diversions, unfinished projects, illegal speed breakers, and other bad road infrastructure are the leading causes of these incidents. Because two-wheelers are more likely to be engaged in road accidents as a result of carelessness, purchasing PA insurance is vital. It provides financial protection up to 15 lakh.

Is Personal Accident Coverage Required for Bikes?

According to the Motor Vehicle Act of 1988, all two-wheeler owners (bike or scooter owners) are required to have third-party bike insurance. The insurance regulating authority made Personal Accident Coverage mandatory in response to an increase in traffic accidents and growing claims from policyholders, with the intention of covering any damage or injury incurred during the accident.

However, with this compulsion to acquire personal accident coverage, minor adjustments were made in January 2019. The modifications are as follows:

• All bike owners must have PA cover. It is vital to acquire bike insurance, whether it is third-party or comprehensive.
• A Personal Accident insurance has a minimum coverage amount of & 15 lakh in the event of permanent disability or death of the policyholder in a traffic accident.

Coverage under Personal Accident Cover in Bike Insurance

The following is a list of includes and exclusions for PA coverage in bike insurance.
Inclusions

• Accidental death: In case of an accident leading to the unfortunate demise of the insured person, the nominee receives the entire sum insured.
• Permanent total or partial disability: If the accident causes long-term injuries disabling the insured completely or partially from employment or income generation, a percentage of the sum insured is paid on the basis the disability caused.
• Fractures or burns: Broken bones or burn injuries from an accident are covered for medical expenses and compensation.
• Paralysis: Complete and permanent paralysis of limbs is covered.
• Education grant: Some policies offer grants if the insured dies and has dependent children under age 25 to pursue education.
• Hospital cash: Daily allowance is paid for each day of hospitalization due to injuries from an accident.

Exclusions

• Self-inflicted injuries, suicide or attempted suicide.
• Injuries due to mental disorders, sickness or disease.
• Injuries from war or nuclear perils.
• Injuries due to participation in adventure sports.
• Injuries due to intoxication by alcohol or drugs.
• Injuries due to participation in criminal acts.

Things to Consider Before Opting for Personal Accident Cover

Here are some important things to consider before opting for a personal accident cover:

• Your medical history: Pre-existing illnesses can impact claim acceptance. Disclose all relevant conditions correctly.
• Family responsibilities: Consider dependents relying on your income and future expenses like children’s education or marriage.
• Lifestyle and profession risks: Occupations with higher accident risks may require higher sum insured. Reckless riders too should opt adequately.
• Existing insurance covers: Check if you already have term or health plans providing accident protection. Avoid duplicating coverage unnecessarily.
• Inflation factor: The cost of living and medical expenses rise over time. Choose a sum insured that will continue providing sufficient coverage years later as well.
• Premium affordability: Premiums vary with sum insured and age. Don’t over-insure by choosing an expensive plan you can’t maintain regularly.
• Future income potential: Consider your current and likely future earnings capacity while deciding the sum insured to ensure timely financial support for dependents.
• Policy tenure: Lifelong renewal options ensure lifelong coverage if premiums are paid on time without any break.
• Claim settlement ratio: Check the insurer’s past claim acceptance and settlement record for assurance of actual benefits when needed.

How to Buy a Personal Accident Cover in Bike Insurance Online?

Buying personal injury insurance online allows bike owners to acquire coverage from the convenience of their own homes. Below are the step-by-step instructions:

• Choose an insurer: Choose an insurance firm that provides personal accident coverage as an add-on to bike insurance online, such as HDFC Ergo, ICICI Lombard, Bajaj Allianz and Acko
• Visit insurer’s website or app:  Visit the insurer’s website or download their app from the Play Store. You may also use comparison websites to discover the greatest deals.
• Provide basic details: To register your profile, include your name, contact information, PAN, Aadhaar, and other KYC papers.
• Select the bike: Select your bike from the dropdown selection of make, model, and registration information. Mention whether you require third-party or own-damage coverage.
• Decide sum insured: Determine the amount covered for personal accident coverage depending on your financial dependence. Usually it varies between INR 2 and INR 10 lakh.
• Add nominee details: Enter the name, age, relationship, and contact information for the person to whom the cash will be paid in the event of your tragic demise.
• Pay premium: The premium will be shown. pay online via net banking, debit/credit cards, or wallets.
• Intimate claims: In the event of an accident causing injuries or death, contact the insurer immediately for the claims procedure and documents required.
• Download policy documents: Within minutes of successful payment, your bike insurance policy copy, including personal accident coverage information, will be available for download.

Read more: How to download bike insurance copy

How to Claim Personal Accident Cover in Bike Insurance Online?

Here are the steps to claim personal accident insurance online:

• Intimation: Inform the insurance company about the accident within 24 hours of the incident. You can call or email the details.
• Claim form: Download the personal accident insurance claim form from the insurer’s website or ask them to email it to you.
• Attach documents: Scan and attach documents like accident/FIR report, medical records, bills/receipts, disability certificate (if applicable) etc. with the filled form.
• Submit online: Upload the completed claim form along with documents on the insurer’s website or email them to the designated address. Retain copies safely.

Bottom Line

Personal accident coverage is an essential component of any bike insurance policy, protecting both lives and livelihoods. Accidents may occur at any time on Indian roadways, which are notoriously dangerous. 

Having a sufficient personal accident amount insured assures that a bike rider’s financial dependents are protected even if the bad happens. The expenditures are negligible when compared to the high cost of medical care or long-term disability. 

When purchasing personal accident insurance, it is important to carefully analyze individual demands, risk appetite, and budget. This allows for the ideal mix of low rates and comprehensive risk coverage. It is thus prudent for all bike owners to accept the personal accident add-on and ride safely into the future.