[TusharK]

Thanks to Sunil Chellwani for the heads up.

Earlier this year, the Insurance Regulatory and Development Authority of India (IRDAI) raised the personal accident cover for vehicle owners from Rs. 1 lakh to Rs. 15 lakh, which raised the annual premium by Rs. 750.



The IRDAI has now announced that from January 1, 2019, unbundled compulsory personal accident (CPA) cover will be permitted, as it would reduce the cost of ownership of vehicles. Besides, many owner-drivers have existing general personal accident covers and may own multiple vehicles. In this case, the standalone CPA cover will be valid for all vehicles owned by the person.

Upon expiry of a bundled CPA cover, owners can get a standalone CPA policy from any registered general insurance company of their choice as it also includes cover against motor accidents. In case, the owner already has a 24-hour personal accident cover against death and permanent disability of at least Rs. 15 lakh, then a separate CPA cover will not be required. If a policyholder has a liability only policy or package policy and opts to take a standalone CPA cover, the CPA cover offered on the former will be deleted.

Source: Economic Times

Link to Team-BHP News

[ghodlur]

It is amusing to see IRDAI pull back the Compulsory Personal Accident along with Third Party Liability. The foresight that motorists would have a stand alone personal accident cover was clearly overlooked by IRDA. Based on the new directive, it remains to be seen as to how IRDA will ensure that while buying the Insurance for new cars, stand alone PA cover will be scrutinized.

Unbundling of the CPA is a mixed proposition. If buying a new car, in case a Personal Accident Insurance cover is unavailable with the buyer, it makes sense to buy the CPA of 15L for a premium of Rs 750 bundled along with the TPL. If someone intends to take the PA cover from outside, it will be costing almost double for a year's cover as on date. Insurance cos will have to provide a new product which will be equivalent to the earlier pricing for which IRDA has issued a deadline of 15th Jan 2019. Till the time Insurance doesn't come up with an approved product the CPA ruling will still be applicable for new car buyers.

It is unclear whether IRDA would want vehicle owner to provide 3 yrs Standalone Personal Accident cover when buying a new car. If so, it would be cumbersome on the part of the vehicle owner who would want to take the benefit of lowest Insurance premium every year.

The biggest advantage of the new IRDA directive is that a single Stand alone PA cover will be applicable for all vehicles driven by the owner.

In other words IRDA is forcing motorists to own a Personal Accident cover to improve the Insurance penetration.

[Djay]

I recently came across this development and am reading some confusing implications. So if I already have the compulsory PA cover as part of one car or two-wheeler, will I be covered and not have to include it while paying insurance for my new car or while renewing for another vehicle.

Or do I have to take a separate PA cover only policy and it will automatically cover all my vehicles and I can remove that component from insurance for each vehicle?

Would be really grateful if anyone can clarify as I just renewed for a car with the PA cover and expecting delivery of a new car next week. In that case can I exclude the PA cover in the new car policy.

Also what about the additional PA passenger cover which is part of most comprehensive policies. Is that also common across vehicles or tied to the vehicle.

[ghodlur]

Originally Posted by Djay

I recently came across this development and am reading some confusing implications. So if I already have the compulsory PA cover as part of one car or two-wheeler, will I be covered and not have to include it while paying insurance for my new car or while renewing for another vehicle.

Or do I have to take a separate PA cover only policy and it will automatically cover all my vehicles and I can remove that component from insurance for each vehicle?

Would be really grateful if anyone can clarify as I just renewed for a car with the PA cover and expecting delivery of a new car next week. In that case can I exclude the PA cover in the new car policy.

Also what about the additional PA passenger cover which is part of most comprehensive policies. Is that also common across vehicles or tied to the vehicle.

To answer your queries:
PA cover taken against one vehicle (4 or 2 wheeler) with SA of 15L is valid when choosing insurance for the second car. So you don't need to buy another PA cover for the new car, the old one will suffice. Pls note that the PA cover is taken against the individual not the vehicle.

PA cover for passengers is linked to the vehicle against which the Insurance is being taken and is not common across vehicles owned. Each vehicle will have separate PA cover for passengers.