A car is a substantial purchase that most households invest in. It provides us with comfort and convenience of travelling longer distances. The car’s safety is undoubtedly crucial for every car owner. But with this, what is more important is the safety of the car driver or car owner.
To protect car owners’ health and lives, a new concept known as CPA has been introduced. It’s not just a facility but a mandated policy that every car owner has to have.
This article covers more about CPA, its needs, inclusions, and exclusions, so you can have a proper understanding of why it is necessary.
What is CPA Cover in Car Insurance?
In car insurance, CPA coverage expands as Compulsory Personal Accident coverage. It is a car insurance policy that acts as a safety net for vehicle owners or drivers in unfortunate events like accidents that can cause death or physical disability.
In India, the government has made CPA coverage mandatory for every vehicle motor insurance policy.
You can also check CPA coverage while you compare car insurance during the time of purchase. Always buy insurance from a trusted insurance provider such as Tata AIG, so that your safety gets into the right hands.
Why is CPA Coverage Essential?
Compulsory Personal Accident coverage in insurance for cars is crucial for every motorcar owner due to 3 reasons. Let us understand each of them:
Legal Requirement
It is mandated by law for every car owner in India. According to the India Motor Tariff, 2002, every car owner must have CPA coverage as part of their car insurance. The government requires this to be included in insurance to ensure that every citizen has adequate protection against accidents.
The idea is about following the rules and making driving safer for car owners or drivers. Not having CPA cover in motor insurance can attract legal trouble; an owner may have to pay a fine against it.
Financial Security
CPA cover will help you or your beneficiaries with financial strains if you get seriously injured or cannot survive a car accident. Having financial security is crucial in tough times.
Whether your injury is big or small, a CPA can help you pay medical bills. If something unfortunate happens to you, your family will receive money from CPA insurance to sustain their expenses.
Peace of Mind
Having CPA cover means that you can drive knowing that you have a backup plan available if something goes wrong. It makes you feel financially secure while you worry less about your money. However, it is important to follow the traffic rules and drive your car safely.
Inclusion of CPA in Car Insurance
Death coverage
A financial claim is allowed to the vehicle owner’s nominee in case of the occurrence of a death. The amount to be paid is predetermined in your insurance policy.
Disability Coverage
In case of uncertainty or accident, if the driver suffers from a permanent disability, the CPA is entitled to reimburse them as per the terms of the policy.
As per IRDA guidelines, an amount up to ₹15 lakhs is the maximum compensation that an insurance provider can provide in case of death of the insurance holder or physical disability. To be eligible for this and to get this claimed benefit, an individual should hold a valid and active driving licence.
What is Not Covered Under Car Insurance CPA?
While considering CPA insurance, it is essential to understand the circumstances under which claims may not be covered. Here are some common exclusions:
Minor Injuries
Self-Inflicted Injuries> Injuries or disabilities caused due to self harm may not be covered. In addition to this, suicidal attempts are strictly excluded.
Influence of Intoxicants: Injuries or death caused under the influence of alcohol, drugs, or other intoxicants are excluded from the cover.
Passenger’s Personal Coverage
It is important to note that under CPA, a passenger’s insurance is usually excluded. CPA car insurance coverage mainly focuses on the insured individual(driver in case of vehicle insurance). This means passengers who might be involved in the accidents will not be covered under the CPA.
Third Party Claim
A third-party claim is not covered under car insurance CPA. Third-party insurance is another mandatory insurance policy that covers the damage of the third party that is caused due to one’s car. A compulsory personal accident claim has no clause for a third party.
Non-accidental Events
A non-accidental event such as illness or an illegal activity is not covered under CPA. Any damages resulting from war, riots, and civil disturbances are also excluded from this coverage. Accidents taking place while involved in hazardous sports or racing are also not covered hereunder.
To Sum Up
CPA or Compulsory Personal Accident Coverage is not just a legal requirement but also a critical aspect of your vehicle’s insurance policy. It offers a financial safety net in the unfortunate accidental incident resulting in death or disability.
Understanding what a CPA cover is and ensuring that your vehicle insurance includes it is essential for every car owner. It helps you with peace of mind, knowing that there’s financial support for the damage to you or your nominee ahead.
