What is Personal Accident cover in Bike Insurance Plans?
When you buy a bike, you need to buy a valid insurance policy on the bike as well. The Motor Vehicles Act, 1988 governs transportation laws in India and one such rule specified by the Act is the need of a valid third party insurance cover on every vehicle being used on Indian roads. So, when you buy a bike, you need a mandatory third party cover on it as well.
A third party policy protects you against the financial liability that you suffer if any third party is physically injured or killed due to the bike. Moreover, if your bike damages any third party property, the financial loss suffered would also be covered under the policy. However, the third-party policy does not provide coverage for the damages which the bike might suffer itself. This is why you need a comprehensive bike insurance policy which covers both third party liabilities as well as the damages suffered by the bike.
Whether you buy a third party liability plan or a comprehensive one, you are required to opt for a mandatory personal accident cover too. Let’s understand what this cover is all about –
What is personal accident cover in bike insurance?
A personal accident cover is a cover which should be taken with a third party policy or a comprehensive one. It covers the owner or driver of the bike. Under this cover, you get coverage for the following –
- Accidental death
- Permanent total disablement suffered due to an accident
- Permanent partial disablement suffered due to an accident
The sum insured for the personal accident cover is INR 15 lakhs. In the first two instances, i.e. accidental death and permanent total disablement, 100% of the sum insured is paid to the owner or driver who suffers these contingencies. In case of permanent partial disablement, however, a percentage of the sum insured is paid depending on the severity of the disability suffered.
Features of personal accident cover in bike insurance
Here are some salient features of the personal accident cover which is available in a bike insurance policy –
- The cover is offered only for the owner or driver of the bike. This means that if any individual, other than the owner, is driving the bike and suffers accidental death and disablement, the claim would be payable
- The premium for the personal accident cover can be up to a maximum of INR 750
The rule regarding personal accident cover in bike insurance
While personal accident cover is a mandatory part of your bike insurance policy, you can opt-out of it in the following circumstances –
- You have an existing personal accident cover of a minimum of INR 15 lakhs in a car insurance policy
- You have an existing personal accident cover of a minimum of INR 15 lakhs in a standalone personal accident policy
This means that if you already have a personal accident cover in your name and the coverage level is a minimum of INR 15 lakhs, you don’t need to opt for a personal accident cover in your bike insurance policy.
Personal accident cover for the pillion rider
The mandatory personal accident cover in bike insurance plans covers only the owner or driver of the bike. Any rider riding pillion is not covered. Thus, in an accident, if the pillion rider suffers any accidental contingencies, no claim would be paid for him/her. If you usually ride your bike with a pillion rider, insuring the rider against accidental contingencies is a wise choice. To do so, you can opt for the personal accident add-on for the pillion rider. Let’s understand –
What is accident cover in bike insurance for pillion riders?
Comprehensive bike insurance plans allow a personal accident cover for pillion riders through an add-on. You need to opt for this add-on by paying an additional premium. If the add-on is selected, coverage for accidental death and disablement is extended to the pillion rider thereby increasing the scope of coverage of the bike insurance plan.
Personal accident cover for paid riders
Businesses which hire paid riders to drive bikes for commercial purposes are bound by the Workmen’s Compensation Act, 1923 to provide compensation to such riders in case they suffer accidental death or disablements during the period of their employment. As such, businesses can buy a personal accident cover for their bikes covering their paid riders. The cover is optional in nature and when bought, it covers the named riders of the bike against accidental death and disablement.
Exclusions under personal accident cover
The personal accident cover does not pay claims on death or disablements suffered due to –
- Suicide or self-inflicted injuries
- Driving without a license
- Driving under the influence of alcohol and/or drugs
- Driving outside the boundaries of India
- Criminal activities
- Participating in hazardous activities or adventure sports
- Mental disorders
Types of accident cover in bike insurance
As is evident from the afore-mentioned accident covers, a bike insurance policy provides different types of accident cover. They can be summarized as follows –
- Third party accident cover wherein compensation is paid to the third party if they suffer any accidental injury or death due to the bike. This is a mandatory cover which is available in both third-party and comprehensive bike insurance plans
- Personal accident cover for the owner or driver of the bike which is also a mandatory cover under both third party and comprehensive bike insurance plans
- Personal accident cover for the pillion rider which is an add-on available under comprehensive bike insurance plans. This add-on covers the pillion rider against accidental death or disablement
- Personal accident cover for the paid rider of a commercial bike. This is an optional cover which can be taken under a third party or comprehensive policy
Why buy a personal accident cover with bike insurance?
First and foremost, a personal accident cover for the owner or driver of the bike is mandatory if you don’t have any other personal accident cover in your name. Thus, you need the cover to fulfil the legal mandate. Secondly, bikes are quite prone to accidents and such accidents usually result in severe injuries and even death. With the fast-paced life that has become a feature of modern times, road accidents have increased considerably. In case of accidental death or disablement, there is an immense financial loss for the rider as well as for the family. To cover this loss, a personal accident cover is a must.
In case of the personal accident cover for a pillion rider, the add-on makes sense if a rider rides the bike frequently. In an accident, the pillion rider is also prone to death or disablement and such a contingency would cause a financial loss for the rider as well. Thus, the add-on should be bought to cover the pillion rider so that any possible financial loss can be easily compensated.
How to buy personal accident cover in bike insurance?
You can buy a personal accident cover in bike insurance when buying the policy online. The cover should also be renewed every year for continuous coverage. The personal accident add-on, on the other hand, can be bought either at the time of buying the policy or at the time of renewal. To buy online you can visit https://www.turtlemint.com/two-wheeler-insurance/ and enter in your bike details. Thereafter you would be provided with the premium quotes of leading insurance companies. Choose the personal accident cover and/or add-on cover and the premium would be updated. You can compare and choose a policy offering the best coverage at the lowest premium and then buy the plan online through Turtlemint itself. The process is simple and quick.
How to claim for a personal accident?
In case of accidental death or disablement involving your bike, you should inform the insurance company immediately. A police FIR should also be filed for the accident. An insurer’s surveyor would assess the damages and prepare a report. You would have to fill and submit a claim form along with the relevant documents to get the claim under the policy.
So, choose a personal accident cover for yourself as well as the pillion rider and stay financially secured against accidental contingencies.
Frequently Asked Questions
- What documents are needed to make a personal accident claim?
You need to submit the police FIR, claim form, policy document, RC book of the bike, details of the accident, death certificate (in case of accidental death), disability certificate from a recognized medical practitioner (in case of disability), surveyor’s report, hospital records (if any) and any other document which the insurance company needs.
- Are temporary total disabilities covered in the personal accident cover in bike insurance?
No, temporary total disablements are not covered. Only permanent disablements are covered under the personal accident cover in a bike insurance policy.
- Is the pillion rider add-on mandatory?
No, personal accident cover for pillion riders is an optional add-on which is not mandatory to buy.
- Does the personal accident cover provide coverage for accidental hospitalisation?
No, the personal accident cover does not cover the cost of accidental hospitalisation. It pays a lump sum benefit only on accidental death or permanent disablement.