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Is Personal Accident cover in Motor Insurance adequate? HC thinks otherwise

Discussion in 'Insurance & Loan Reviews' started by ghodlur, Nov 29, 2017.

  1. ghodlur

    ghodlur Esperto

    As it is known that Personal Accident cover for owner/driver is mandatory part of the Third party Liability premium. At present the maximum cover an owner/driver can have is 2L for a 4 wheeler and 1L for a 2 wheeler. This cover of 2L for a 4 wheeler costs Rs 100 as premium and is included by default along with the TPL cover premium. By far this is cheapest PA cover which is provided by all the Insurance cos considering that market cost for a 2L PA cover would be between 1100 to 1500 rs. Is this PA cover of 2L sufficient in these present times when the medical costs have sky rocketed considering the fact that the existing PA cover was set up 15 years back?

    In case of death of the owner in a motor accident is 2L sufficient for the dependents? The Madras HC has directed to IRDA to revise this amount to 15L as minimum enabling vehicle owners paying premium to get adequate compensation in the event of death or bodily injury. This would be applicable if the owner dies in an accident which does not involve another vehicle. In case another vehicle is involved, TPL would kick in and the compensation would be decided by the Motor tribunals.

    Refer to the article as below:

    Although I personally have a PA cover from my employer, do not have anything outside independant cover as such considering that I daily commute to office using my personal car and I drive personally. The PA cover could be separately bought along with the term policies or independent policy. So should IRDA hike the mandatory PA cover to 15L which would mean increase in annual premium? I don't recollect any changes in this regards in the revised MVA.

    Presently the structure of personal accident payout is as attached.
    Attached Images
    limraj and Sachin patel like this.

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