Imagine this: You are driving your family to a hill station like Lonavala or Ooty.
Unfortunately, the car skids on a wet turn and hits a tree. You and your wife both suffer fractures.
The insurance company pays for the car repairs. They also pay YOU (the owner-driver) under the mandatory "Compulsory PA Cover."
But for your wife's medical bills or disability compensation? They pay ₹0.
Why? Because standard Comprehensive Insurance covers the Car and the Driver, but treats your family members as "Uninsured Passengers."
Disclaimer: Third-party liability theoretically covers passengers, but it requires a court battle. To get immediate compensation for family inside the car, you need a specific add-on.
You Are Covered, But Is Your Wife?
1. The "Comprehensive" Myth
Most Indians believe "Comprehensive Policy" means "Everything is covered." It does not.
Let's break down who is covered in a standard policy:
- The Car (Own Damage): Covered.
- Third Party (Pedestrian/Other Car): Covered (Unlimited liability via court).
- Owner-Driver: Covered (Mandatory ₹15 Lakhs PA Cover).
- Passengers (Family/Friends): NOT COVERED automatically.
2. The Solution: "Unnamed Passenger Cover" (IMT 16)
To protect your loved ones, you must tick a small box called "Personal Accident Cover for Unnamed Passengers".
🛡️ What It Offers
- Coverage: It pays a fixed sum (Benefit) in case of death or permanent disability.
- Sum Insured: While the basic is ₹1 Lakh, in 2025, it is highly recommended to choose ₹2 Lakhs to ₹5 Lakhs per passenger.
- Who is "Unnamed"? Anyone sitting in your car legally. It covers your wife, kids, parents, friends, or colleagues.
- The Cost: Extremely low. Approximately ₹50 to ₹150 per seat per year depending on the coverage amount.
3. Medical Expenses Add-on (Even Better)
The PA cover listed above usually pays out only for Death or Disability.
But what if you just have hospital bills (stitches, fractures) and recover fully?
For this, look for the "Medical Expenses for Passengers" add-on.
It reimburses actual hospital bills (up to a limit, e.g., ₹50,000) for anyone injured in your car. It costs a bit more but is very useful for minor accidents.
4. Why Is It So Cheap?
Insurers price this risk very low because passenger fatalities are statistically lower than vehicle damage claims.
For a 5-seater car, insuring 4 passengers for ₹2 Lakhs each might cost you less than a burger meal (approx ₹250 total).
5. Don't Rely on "Third Party" Claims
Technically, passengers can sue the driver (you) to claim compensation under "Third Party Liability" in a Motor Accident Claims Tribunal (MACT).
⚖️ The Legal Trap
Do you really want your wife or friend to drag you to court and fight a legal battle for 5 years just to get compensation?
Furthermore, in some legal interpretations, a family member is not considered a "Third Party."
The Passenger PA Add-on provides immediate, hassle-free compensation without proving "negligence" or going to court.
Small Tick, Big Safety
When you renew your car insurance online, you will see a list of add-ons like "Zero Dep" and "Engine Protect."
Often hidden at the bottom or unchecked by default is "PA Cover for Passengers."
Don't skip it.
Your car can be replaced. Your family cannot. For ₹250, ensure that everyone in your car is as protected as you are.
Action Plan:
- Open your policy PDF. Look for "Liability to Passengers" or "PA Cover for Unnamed Passengers."
- If it says "No" or "Sum Insured: ₹0", note it down.
- During renewal, manually select this add-on. Make sure to cover the full seating capacity (e.g., 4 passengers for a 5-seater car).
Helpful Resources:
HDFC Ergo: Importance of Passenger Cover
ICICI Lombard: What is Passenger Assist Cover?
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