What is Passenger Cover in Car Insurance?

passenger cover in car insurance
Passenger Coverage

If you don’t have passenger cover in your car insurance, then maybe you are lacking a very important cover in the policy. Let’s understand, why I am saying this. The risk of a car accident is very common and a lot of road accidents happen in India every year.

These road accidents become the reason for the death and disability of many people. Accidental injury or death is possible to anyone the person is driving the car or inside the car as a passenger. Nobody is 100% safe.

Normally, insurance companies provide you inclusive personal accident cover for owner-driver in car insurance and two-wheeler. But you need to buy personal accident cover for the passenger as an add-on in a private car insurance policy.

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What is Passenger Cover?

If you are driving the car then possible there are some other people inside the car also. They may be your near and dear or another person. Apart from you (who is driving the car), the other person is called a passenger.

Passenger cover is a personal accident cover for these persons who be inside the car. If you opted for this cover in your policy means you have financial protection for them also.

If there is any death or disability of any passenger due to your car accident then the company will pay compensation as a claim. It is available up to the sum assured of Rs.200000/- at the cost of Rs.100 per person.

Premium and Sum Assured for Passenger Cover

You can opt minimum sum assured of Rs.10000/- and a maximum sum assured of Rs.200000/-. The cost of the sum assured of Rs.10000/- is Rs.5/- per person and the cost of the sum assured of Rs.200000/- is Rs.100 per person.

This means if you have a sitting capacity of the passenger in your car is five then your total premium for Sum assured of Rs.200000/- will be Rs.500/-.

Normally sum assured is available in multiple of Rs.10000 at the cost of Rs.5/- per person only. The sum assured structure is like Rs.10000/-, Rs.20000/-, Rs.30000/-, up to Rs.200000/-.

You have the flexibility to choose any sum assured as per your requirement in a private car insurance policy. Try to select the maximum possible sum assured in your car insurance. By doing this you can have maximum protection coverage whether you are buying the policy from Cholamandlam MS General Insurance, New India Insurance, or any other company.

Benefits and Compensation

Personal accident cover for passengers has financial protection against death or disability. In case of death, insurance companies pay a claim of 100% of the sum assured.

In case there is a loss of two limbs or sight of two eyes or one limb and sight of one eye then the compensation amount is 100% sum assured. If there is a loss of one limb or one eyesight then compensation is 50% of the sum assured. In case of permanent total disability, the claim amount will be 100% of the sum assured. For more detail about it you should read your policy document.

Who Should Buy Passenger Cover?

Normally, every car owner should opt for this add-on cover. Having passenger cover is a very important decision. This cover saves you from financial liability and legal liabilities as well. If you have passenger cover then you may have less stress in case of any accidental injury to the passenger.

If you drive your car with passengers/near and dear on a regular basis then you must buy this. But if you are the person who drives the car alone most of the time then you may avoid it.

For the person who has a commercial vehicle then you should be sure that you have passenger cover in the policy. Whether you have a school bus or any other commercial taxi you never miss passenger cover. Tariff rates for passengers in commercial vehicles will be different.

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