No one can know when they will get into an accident. They can occur anytime on the road and cause serious injury to the person and sometimes even death. IRDAI mandates that all drivers have personal accident coverage, which guarantees coverage in the event of significant injuries and death. Sometimes passengers are equally harmed in an accident and even if the vehicle owner or the person driving the vehicle has accident protection, the passenger will not benefit. Hence, insurers have a different way of providing coverage to the passenger of a vehicle. Here is all you need to know about passenger cover:
What is a passenger cover?
In motor insurance, passenger cover means offering similar coverage to the passenger in the vehicle as the driver of the vehicle. Personal accident coverage is mandatory, but passenger cover is not a mandatory policy. Even though buying it is not a compulsion, getting a passenger cover is the best option. This is because you will most likely travel with your family or friends. Protecting your passengers is your responsibility. With this add-on cover, the driver can cover up to 3 additional passengers, which expands the coverage.
How does the add-on work?
The standard policy provides basic coverage for the insured vehicle owner in the event of an accident. So, if you are the driver, you will get coverage in case of any injury and the nominee will get the sum assured in case of any death. Normal car policy is unable to cover the occupants of the vehicle. They all have to pay out of their own pocket for medical treatment or any other property damage.
The owner is responsible for the passengers in their vehicle. Hence, it is a very big advantage to have the liabilities of passengers covered during an accident. Therefore, the passenger cover will add some value to the current car insurance policy standard that you have. Moreover, it will also create a sense of safety among your passengers.
With passenger coverage as a part of your car insurance coverage, your passengers can claim financial support for the expenses they would have to make towards any treatment in the event of such accidents. Moreover, this means that you wouldn’t have to worry about arranging money for the sake of compensation that you would be liable to pay for your passengers’ troubles.
Benefits of having a passenger cover
The responsibility of being the owner of the car means having certain responsibilities towards the passengers in the car. Adding a passenger cover to the basic policy when you buy car insurance widens the scope of coverage of your comprehensive car insurance policy. Here are a few benefits of having a passenger cover:
- Covers all medical expenses incurred in treating injuries in the event of an accident.
- Provides financial assistance to the family in the event of the death of the passenger.
- The claim helps to reduce any financial obligations that you may face due to the risk.
What is not included in the passenger cover?
- In the case of a private car, the add-on does not cover more than 3 passengers.
- Any physical injury in a suicide attempt is not covered by this policy
- The coverage of the add-on will not apply for the event where the accident occurs while the driver was intoxicated with alcohol or any narcotics.
Many policyholders refrain from purchasing the passenger cover, believing that the cover will not bring them direct benefits. However, this is not true. In the event of an accident, you are responsible for the safety of your passengers. Therefore, you also have a responsibility to make sure that they get the help they need. Passenger cover will take care of this responsibility for you. If you have a car insurance policy, you will have surely loo ked into the selection of add-ons that your provider offers. Among all those options, passenger cover is one of the most important ones as it prioritizes the safety of travelers more than monetary benefit. All you have to do is add the passenger cover add-on to your policy at the time of renewal through your car insurance app.