You may have come out unscathed through many dangers, toils and snares while driving. Thankfully, you made it thus far. But you still cannot predict what will happen the next time you take your vehicle on the road. This is why you need some plan to back you up in case something goes wrong.
And this is where a Compulsory Personal Accident cover, or CPA cover, comes in.
What is CPA cover in car insurance?
In car insurance, you get financial coverage either for damages done to your vehicle (Own Damage Insurance) or a vehicle belonging to someone else (Third Party Insurance).
Third-Party Insurance also covers expenses related to bodily injury or property damage of a third party.
However, when it comes to accidental injuries that happen to you, there is no cover.
But a Personal Accident cover in car insurance ensures that you get financially compensated in case you get into an accident while driving that results in injury or death. Also, the said injuries are life-altering ones that include loss of eyes, or limbs, or permanent total disablement from the accident.
A car insurance CPA cover comes with a substantial coverage of up to Rs.15 Lakhs. It was first mandated by the IRDAI in 2002 and only had a cover of Rs.1 Lakh for cars and two-wheelers. In 2017, the minimum cover was increased to Rs.15 Lakhs.
What does the CPA cover include?
The CPA cover provides compensation for several extreme cases of injuries due to a road accident and also offers compensation for deaths.
Here is a list of coverages under CPA:
1. Loss of both arms and legs
2. Loss of sight in both eyes
3. Loss of one limb AND sight in one eye
4. Loss of one limb OR sight of one eye
5. Permanent total disablement from accidental injuries apart from the ones mentioned above
6. Death
In what cases does the CPA cover not apply?
There are certain exceptions that exclude the CPA cover from providing financial compensation. They are:
1. If death or injury was a result of self-harm or suicide
2. If an accident leading to death or injury was due to drunk driving or driving under the influence of drugs
3. If the death or injury occurs outside the geographical coverage area mentioned in the policy
Note: For a full list of exclusions, please read the Policy Wordings.
What are the benefits of having a CPA cover?
CPA cover in
car insurance means getting coverage for risks in unfortunate situations, just like any other type of insurance. Therefore, having a CPA cover is always beneficial if you're someone who drives a vehicle whether frequently or occasionally.
To summarise, here is a list of some of the benefits of a CPA cover:
1. Up to Rs.15 Lakhs coverage is offered in case of death or bodily injury due to an accident while driving.
2. If a death leaves a dependant family with no income to fall back on, the CPA cover provides compensation so that the bereaved family can find its feet in the short term.
3. Financial assistance is provided if an accident leads to loss of arms and legs and or eyesight.
4. Financial compensation is offered if an accident while driving leads to a permanent total disablement of some sort.
Conclusion: The importance of having CPA cover in car insurance
An ideal world would be where we can only expect good things to happen however, we know that not to be true. So, we cannot expect everything to always go well on the road.
Therefore, having a CPA cover is quite important because it gives you some kind of financial cushion for you or your family to fall back on in case something unfortunate happens to you on the road.
