How a Personal Accidental cover helped Mr. Rajesh in a time of crises.


Accidents can happen at any time and they can cause irreversible damage. Though one cannot predict such unfortunate events, you can surely prepare for them beforehand. Doing so will put you in a better position to handle the repercussions & get your life back on track after the incident. Among the various precautions, getting a motor insurance policy is one of the more important provisions. It gives you peace of mind from monetary costs and keeps your financial health intact after a mishap.

Motor Insurance

This is because a motor insurance policy comes with a number of very beneficial features & attributes that provide protection from numerous aspects of an accident. Among these features & attributes is the personal accident cover. Up until recently, the personal accident cover was a very nominal amount and thus, it wasn’t given much importance amongst buyers. However, a recent mandate by the IRDAI has called for a compulsory personal accident cover of 15 lakh on all motor insurance policies. This mandate can prove to be a lifesaver for new insurance policy buyers.

Take Mr. Rajesh for example; he purchased his car insurance policy after the 20th of September 2018 meaning his plan came with the new compulsory 15 lakh personal accident cover. At first, he thought this was just a money making gimmick, as the PAC component of his premium amount was Rs. 750+ GST. However, since it was mandatory and it wasn’t much in comparison to the total premium amount, he agreed with the terms and took out the insurance policy for his car.

A few months later, Mr. Rajesh was making his way to work and proceeded to cross a green signal when out of nowhere a truck came barreling towards him and crashed into his car. When he came to his senses in the hospital, he found out that his injuries have resulted in him being incapacitated and unable to work. However, in this moment of despair, Mr. Rajesh realized that he was eligible to claim 100% of the PAC cover to ensure that his immediate needs and those of his family would be covered with ease, even if he couldn’t earn a living. He calculated that his monthly expenses of Rs. 25,000 could be covered for 5 years without his income solely on the PAC sum assured.

He could use these 5 years as a buffer to recover completely and look for alternate means to earn a living. This thought gave him a lot of relief even in the face of such a traumatic incident. He never expected it but his car insurance policy and more specifically the PAC came to his rescue during his time of crisis. Now he is recovering and looking to start his own business backed with his years of working expertise. And just like Mr. Rajesh, if you are going to buy or renew your car insurance policy or a two-wheeler plan, it’s worth your time to inquire about the PAC applicable. If you think 15 lakhs is not enough to sustain you or your family in case of an unfortunate event, you can even increase the PAC sum assured by paying a slightly higher premium.

Hope this article has been helpful, good luck and all the best!


Please enter your comment!
Please enter your name here