June 13, 2024
New Delhi
Finance Insurance

What is CPA Coverage in Car Insurance?

CPA Coverage in Car Insurance

What is CPA Coverage in Car Insurance? In today’s environment, automobile insurance protects you from unforeseen losses or collisions that could damage your vehicle. It is an essential financial safety net. However, it’s not just about protecting your priceless car; it’s also about making sure you and your fellow passengers are safe. The CPA cover, also known as Compulsory Personal Accident Cover, is one of the many elements of auto insurance, and it is particularly important for the owner of the vehicle.

Read: How to Claim Car Insurance For Your Own Damage

Read: What are The Consumables in Car Insurance?

What is CPA Coverage in Car Insurance?

In the context of auto insurance, CPA stands for “Compulsory Personal Accident.” Personal accident insurance is crucial, just as it is to have third-party coverage to drive on the nation’s roadways. As a result, you must have a CPA with both third-party and comprehensive insurance. With this personal accident insurance, you are protected in case of an accident-related death or disability.

IRDAI (Insurance Regulatory Authority of India), the insurance regulator, has a new obligation known as CPA, or compulsory personal accident insurance.

The owner-driver of the vehicle is the only person covered by the compulsory personal accident (CPA) coverage provided by Liberty General Insurance. The Insurance Regulatory and Development Authority of India (IRDAI) mandates that every vehicle owner maintain a personal accident insurance policy with a minimum insured amount of INR 15 lakh. Since January 2019, there has been a standalone CPA policy available, which the insured may choose to purchase instead of adding CPA as a cover to a motor insurance policy.

Every driver must have personal accident insurance that is at least Rs 15 lakh in value. Also, regardless of how many vehicles or bicycles you own, a single personal accident insurance policy will be sufficient. Each car does not require its own personal accident insurance policy.

You or your beneficiaries are covered by this policy in the event of an accident resulting in your death or incapacity while operating the insured vehicle. If your automobile insurance policy does not include this protection or If you have many vehicles or do not have this coverage under your auto insurance policy, you can opt to purchase the standalone CPA. Cars (private, commercial, and fleet cabs), two-wheelers (bikes and scooters), and commercial vehicles are the types of vehicles covered by the policy.

What Is Included In The Compulsory Personal Accident Cover?

Personal accident insurance provides coverage for accidental death and accident-related total permanent disability. Depending on the kind of injury sustained, the payment percentage may change. For instance, a policyholder may receive a payout of 100% of the insured amount in the event of death and the loss of all limbs, but only 50% in the event of the loss of a single limb.

The Main Features of the CPA Cover in Car Insurance

  • Personal Accident Coverage: A CPA policy provides benefits for damages brought on by physical harm, disabling conditions, or fatalities stemming from auto accidents. The policyholder is not the only one covered; at the time of the accident, all passengers in the insured car were also covered.
  • Coverage for Medical Costs: In the unfortunate case of an accident, CPA cover aids in easing the financial strain of medical costs. Up to the maximum allowed by the policy, it may also cover expenses such as those related to hospitalization, ambulance fees, surgery, and rehabilitation.
  • Compulsory inclusions: The owner-driver is protected financially against unavoidable accidents thanks to the mandatory inclusion of CPA protection in all motor insurance plans.
  • Coverage Amount: If the owner-driver suffers an untimely death or a permanent total disability as a result of a car accident, the CPA insurance policy will pay out a predetermined amount of money.
  • Disability Benefits: CPA coverage offers a lump-sum payment to the insured or their family if an accident leaves them permanently disabled. The amount of compensation varies according to the degree of the disability and the conditions stated in the policy.
  • Accidental Death Benefits: The CPA cover provides financial support to the insured’s family or designated beneficiaries in the event of the insured’s passing as a result of a car accident. The pay-out amount is detailed in the policy and offers a measure of financial stability during a trying time.
  • Tenure of the policy: CPA coverage normally corresponds with the duration of a motor insurance policy. Your CPA coverage will be renewed when your auto insurance is renewed.
  • Insured amount: The minimum sum insured supplied under this insurance is INR 15 lakhs as of my most recent information update in January 2022 (please verify as policies may have changed).

Need for CPA Coverage in Car Insurance

  • Enhanced safety: CPA coverage provides additional safety for you and your loved ones, while basic auto insurance policies concentrate largely on damage to the vehicle. In the case of an accident that results in physical harm or death, it guarantees your financial security.
  • Medical Expense Coverage: Medical expenses are often astronomical, particularly when there have been serious injuries. By taking care of your medical costs, CPA insurance can help reduce your financial load and free you up to concentrate on your rehabilitation rather than worrying about your bills.
  • Peace of mind: Having CPA insurance in place might give you confidence while driving. Knowing that you and your passengers will be safeguarded in the event of an accident gives you a sense of security.
  • Affordability: CPA insurance is typically offered for a reasonable extra premium. The price of including CPA coverage in your auto insurance policy is a sensible investment when you consider the potential financial repercussions of an accident.

Conclusion

In the case of physical harm or death brought on by a car accident, CPA cover, also known as Comprehensive Personal Accident cover, is an optional addition to your vehicle insurance policy that offers financial protection for you and your passengers. 

It provides benefits for accidental death, incapacity, and medical costs. Your personal accident insurance policy’s policy booklet has a full description of the payment percentage and types of injuries covered.

We all know how quickly your money can be depleted by the cost of treating injuries from accidents. If you also need to pay for car repairs, the scenario can get even worse. By acquiring a standalone compulsory accident plan, truck and bus drivers and owners can also lower their risk of an accident.

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