Know the Facts Why Personal Accident Cover is Mandatory for Car Insurance

It’s imperative for every vehicle owner with a valid license to own personal insurance cover for their private safety and security.

The IRDAI (Insurance Regulatory and Development Authority of India) unbundled the personal accident (PA) cover from car insurance policies in January 2019. The purpose of this movement was to reduce the overall cost of ownership of a car, as previously, the IRDAI had increased the compulsory PA coverage amount from Rs 1 lakh to Rs 15 lakh, which would have come as a burden on many vehicle owners.

As per the IRDAI mandate, you can now tend to buy a separate ‘compulsory personal accident cover’ policy to cover against accidental risks, while driving your own vehicle. This car insurance policy can be bought for any sort of vehicle, such as a private car, taxi, two-wheeler and commercial car or trucks (trucks, buses, etc.).



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