By Tarun Mathur
In 2016, about 4.80 lakh road accidents took place on Indian roads costing a loss of more than 1.50 lakh lives and inflicting serious injuries on nearly 5 lakh persons. This data was revealed in the 2016 Accidents India report presented by the minister of road transport and highways recently. Scary, isn’t it? Since the road safety scenario is not going to improve anytime sooner, it’s for us to find ways to get protection against injury, death, or damage to vehicle. The best protection, it is generally accepted, is motor insurance, particularly accident cover. The following are some accident covers that one can buy with motor policy to get extra financial security.
Personal accident cover
As the name suggests, personal accident cover comes handy in the following situations: Injury caused because of an accident, injury due to car’s gas cylinder burst, fire, road flooding, etc. An accident can result in three kinds of injuries: temporary disability, permanent disability or fatal injury. The premium for this add-on is fixed at Rs 100 for Rs 1 lakh cover and Rs 200 for Rs 2 lakh cover.
Payout after an accident depends upon the kind of injury you suffer: If an accident causes death, the pay-out would be 100% of the sum assured, and in the case of partial temporary disability, it would be only 50% of sum assured (SA). In the case of death, the total amount will be paid to your nominees but only if the car is registered in your name. If you were driving a car which is registered in someone else’s name, you can still get the compensation provided the car owner had taken unnamed passengers add-on.
Personal accident cover for unnamed passengers
This rider costs Rs 50 per person per annum for a cover of `1 lakh, and it gives cover for passengers other than you and your driver. Unmanned passengers under this rider mean your family members or friends traveling with you at the time of an accident. The compensation for your fellow passengers is the same as is yours under the personal accident cover.
Accident cover for paid driver
Under the Workman Compensation Act, 1923, you are liable to compensate the loss your driver suffers due to an accident. However, if you have taken the ‘Accident Cover for Paid Driver’ rider, the liability will shift to your insurer. The maximum compensation payable in such a situation will be determined as per the provisions of Workman Compensation Amendment Act, 2000. In case of death or permanent disability, the payout will be worked out by the court and paid by the insurer at one-go. In case of a temporary disability, however, the insurer will give the due amount in monthly instalments. This rider is available at an annual premium for Rs 50.
The writer is director, Policybazaar.com