This policy covers accidental death or disability while operating the insured vehicle for the owner & driver of the vehicle. If your car insurance policy does not include this coverage or you own many vehicles, you can purchase the standalone CPA. Two-wheelers (bikes and scooters), private vehicles, commercial and fleet taxis, as well as commercial vehicles, can be included under it.
Importance of the CPA Cover in Car Insurance
Compulsory Personal Accident (CPA) cover is a type of insurance policy that provides financial compensation in case of death or disability resulting from an accident. It is important because:
It is mandatory for all vehicles registered in India under the Motor Vehicles Act, 1988.
Every insurance policy makes insurance coverage available to all car owners and drivers.
It ensures that when an insured person is riding in an insured vehicle, their death or permanent disability is covered by the insurance policy.
No one can predict these mishappenings, nor can they be avoided. CPA in car insurance helps the insured vehicle's owner and its driver. It is crucial for providing them with the most needed financial support in the event of an accident.
Which Benefits are Covered in CPA for Car Insurance?
The insurance policy covers an insured individual who passes away or becomes permanently disabled while riding in an insured vehicle. Here are the benefits covered under CPA:
Death benefit: A lump sum payment is made to the nominee or legal heir of the policyholder in the event of their death due to an accident.
Total Permanent Disability benefit: In case of an accident that results in the permanent loss of limbs, sight or speech, a lump sum payment is made to the policyholder.
Partial Permanent Disability benefit: If the policyholder suffers from partial disability due to an accident, a part of the sum insured is paid as compensation.
Medical expenses reimbursement: In case of an accident that requires hospitalisation or medical treatment, the policyholder can claim reimbursement for the medical expenses incurred.
Conditions to Claim CPA
Although not very strict, you need to meet certain conditions to claim CPA. Here is all that you need to know about it:
The policyholder must have paid the premium for the CPA cover and kept the policy in force at the time of the accident.
The policyholder must possess a current driver's licence.
The insured person must have suffered bodily injury as a result of an accident.
The injury must have directly and independently caused the insured person's death, permanent disablement, or temporary disablement.
The injury must not have arisen from any of the excluded events specified in the policy.
The claim must be made within the time limit specified in the policy, usually within 30 days of the accident.
The policyholder or their nominee must notify the insurance company about the accident and file a claim within the specified time frame mentioned in the policy.
The policyholder must provide all necessary documents and information required by the insurance company to process the claim.
The accident must not have occurred due to the policyholder's intentional or criminal act.
Conclusion
Compulsory Personal Accident (CPA) cover is an important aspect of car insurance. It provides coverage for injuries or death to the owner or driver of the insured vehicle in case of an accident. CPA cover can be a helpful addition to your car insurance policy, especially if you or your family members frequently travel by car. It is essential to understand the terms and conditions of your CPA cover to ensure that you are eligible to claim the benefits in case of an unfortunate event. Always check the coverage amount and policy terms before purchasing car insurance to ensure that you have adequate protection. To read more about car insurance you can download the Park+ app, and access various Park+ services for car owners.